FC for Senegal's Niakhar solar, storage project

Energy Resources Senegal (ERS) has reached financial close on its Niakhar 30MW solar with a 15MW / 45MWh battery storage project, IJGlobal can reveal.

Financial documents were signed today (8 September 2025) in Dakar following last week’s agreement in principle between lenders and sponsors on the debt financing of the $64.3 million renewable energy project.

Around XOF 27.2 billion ($48.2m) in debt was secured from a consortium of 3 regional banks:

• West African Development Bank (BOAD) – XOF 15 billion, 14-year tenor with a 2-year grace period
• International Bank for Commerce and Industry of Senegal (BICIS) – XOF 7.2 billion, 10-year tenor with a 2-year grace period
• Coris Bank International Togo (CBI Togo) – XOF 5 billion, 10-year tenor with a 2-year grace period

BOAD is acting as security agent, with BICIS serving as facility agent.

On the equity side, ERS will invest XOF 9 billion, partially covered through an Islamic finance instrument (Murabaha Tawarruq) of XOF 5.4 billion provided by Banque Islamique du Sénégal.

The remainder will be sourced from a combination of share capital and shareholder loans injected on a pro rata basis and backed by a tailored security package.

A state guarantee – signed in 2023 – covers the obligations of Senelec, Senegal’s state-owned utility and the project’s offtaker under a 25-year PPA. Senelec holds 49% equity in ERS, with the remainder held by Senegalese entrepreneur Moustapha Sene.

Niakhar will be developed through a DBAO contract by the Teranga Niakhar Storage (TNS) SPV.

A Chinese consortium composed of Zhejiang Electric Power Design Institute (ZEPDI) and APCC has been tapped for the EPC works, with JA Solar International confirmed as the solar panel supplier and Huawei Technologies supplying the BESS system.

IJGlobal reported in August (2025) that the long-delayed project had regained momentum after tapping funding from new lenders BICIS and CBI Togo alongside returning financier BOAD. BOAD had previously approved a FCFA 15 billion ($16.4m) loan in 2023, though it was never disbursed.

Under the previous iteration of the deal, Climate Fund Managers (CFM) had been slated as a partner on the project through its Climate Investor 1 fund following a joint development agreement signed in 2020. However, CFM eventually exited the transaction as Climate Investor 1 primarily invests in equity-only projects.

Senegal’s installed energy capacity is largely driven by heavy fuel oil (HFO) thermal power (baseload). The country is targeting a greenhouse gas (GHG) emissions reduction of 29.5% by 2030 as a conditional objective and has explored renewables and storage as an alternative.

Once operational, the Niakhar project is expected to contribute 63.24GWh of electrical energy annually and reduce GHG emissions by the equivalent of 32,000 tonnes of carbon dioxide per year. 

Orrick Herrington & Sutcliffe’s Hugues Martin-Sisteron advised ERS and TNS on early-stage documentation, including negotiation of the PPA through to the financing phase.

Commenting on the close, Martin-Sisteron told IJGlobal: “Advising Moustapha Sene – whose vision and leadership as an entrepreneur have been decisive – and his teams at ERS and TNS on the Niakhar solar and storage project has been an honour.

"With the outstanding work of Mariama Diallo as project manager and the support of Senegalese banks, the team successfully structured a CFA franc financing rooted in the African market. Together with Senelec, this African-led and locally financed project sets a benchmark for renewable energy in West Africa.”

Moustapha Sene added: “The Niakhar solar and storage project is a milestone for Senegal’s energy transition – delivering tangible development impact in the Fatick region, supported by Senelec, the confidence of WAEMU banks, and the support of BOAD. Bringing such a complex transaction to life required both vision and technical structuring.

"Working with Hugues Martin-Sisteron and the Orrick team has been a true asset in this journey. Their international expertise in project development and financing, combined with a strong commitment to Africa, made a real difference.”

• Orrick Herrington & Sutcliffe – legal to ERS, TNS (international)
• Boubacar Koïta & Associés – legal to ERS, TNS (local)
• Eversheds Sutherland – legal to lenders (international)
• Houda – legal to lenders (local)