Exim Bank lends $35.26 mn for Senegal power project executed by Kalpataru

Exim Bank of India said it has extended a $35.26 million loan for a power transmission project being executed by Kalpataru Power Transmission in Senegal

The Export Import (Exim) Bank of India on Monday said it has extended a USD 35.26 million loan for a power transmission project being executed by Kalpataru Power Transmission in Senegal.

The buyer's credit facility was extended under the National Export Insurance Account (NEIA) scheme, which provides a safe mode of financing option to Indian project exporters backed by cover from NEIA Trust, as per an official statement.

The bank signed a credit agreement with the Ministry of Economy, Planning and Co-operation of the Republic of Senegal for the purpose of construction and installation of 225 kV overhead transmission line from Tanaff to Ziguinchor (approximate distance 92 km) and bay extensions in Tanaff and Ziguinchor in Senegal, it said.

The project will enable securing energy supply in the southern region of Senegal, comprising of Tambacounda, Ziguinchor and Tanaff, and reduce operating expenses and the cost per kWh, the statement added.

The bank said it had earlier supported the construction of a 225kV transmission line for Tambacounda - Kolda - Ziguinchor link in Senegal by way of a Buyer's Credit facility of USD 200 million under the same scheme.