Burmeister and Wain Scandinavian Contractor (BWSC) is to build a €90 million-worth high-efficiency power plant, which aims to increase the power capacity in Mali by 25%.
The power plant will be located in the city of Kayes in Western Mali, and will have a gross capacity of 90MW.
It will be equipped with six highly efficient Caterpillar 16CM43 medium-speed engines, will be the most efficient plant in Mali and is expected to be completed in just 16 months.
In addition to construction of the power plant, BWSC will also operate and maintain the plant for at least 13 years.
The IPP project has been developed by Redox Power Solutions Ltd, with support from BWSC. Together with the Investment Fund for Developing Countries (IFU) and African Infrastructure Investment Managers (AIIM), BWSC and IPP have invested in the local project company Albatros Energy Mali.
The project is further financed by several strong financial institutions comprising the Islamic Development Bank, the Islamic Corporation for the Development of the Private Sector, West African Development Bank, and OPEC Fund for International Development. Financial contributions have also come from Emerging Africa Infrastructure Fund, and GuarantCo. Total investment is around €125 million of which BWSC will invest around €3.5 million.
The project and the resulting improved infrastructure is expected to have a positive impact on employment, growth and development in Mali. Initially, BWSC expects to create around 300 jobs in connection with the construction of the plant and, later, around 50 permanent jobs in connection with the operation and maintenance of the plant.
BWSC CEO Anders Heine Jensen said: "After more than two years of intense project development efforts, we are of course very pleased and very proud that this important project has been secured.
"In Mali, less than 30% of the population has access to electricity, and the power supply from the new power plant will be a significant catalyst for growth and development in the country.
"At BWSC, we are very pleased to be part of and contribute to this positive development for Mali and not least the Malian people."