The government of Mali has adopted two decrees relating to the proposed Ségou and Fana solar power plant projects with a combined capacity of 83 MW.
The 33 MW Ségou power plant concession contract concluded with the electricity company Ségou Solaire back in 2015 was the subject of an amendment. The amendment relates to the reduction in the cost of carrying out the project which has been made possible by the drop in the price of solar equipment in recent years. Another adjustment was made to the implementation clauses of the Ségou power plant project itself.
“The delay observed in the execution of the project and the drop in the sale price per kilowatt-hour made it necessary to re-revise the contract concerning, in particular, the definition of certain terms, i.e. the buyer’s right of substitution, the applicable tax and customs regime, and the modalities of implementation of the surety agreement” read a report from the Council of Ministers.
The decree concerning the 50MW Fana solar power plant
The government also clarified the terms of the concession agreement for the 50 MW Fana solar power plant. The latter now defines the legal framework of the agreement concluded by the West African country with the Legendre Energie, renewable energy and sustainable development company, and a subsidiary of the Legendre Group.
The State has thus set up an ad hoc entity, namely Fana Solar Power, which has entered into an electricity repurchase agreement with Energie du Mali, the national electricity company of Mali. The power plant concession period was set at 30 years and the construction cost of estimated at US$ 108M.
The implementation of all these projects will enable the West African country to reduce its energy deficit and increase the proportion of its population with access to electricity.