Power and water utility Eranove Group has signed a 30-year concession agreement with the Republic of Mali to finance, develop, build and operate a 42 MW hydropower project on the Niger River.
The US$125 million plant, called Kenie, is part of the Mali government's effort to capitalize on its hydroelectric power potential, which, the World Bank estimates, could amount to 400,000 MW.
"Hydroelectricity is a renewable and competitive source of power in terms of production costs and could even play a role in the financial balancing of power sectors and in meeting demand," Eranove Group CEO Marc Alberola said. "This would prove hugely beneficial both for local populations and for regional industrial development."
Kenie will be developed through Eranove subsidiary Kenie Energie Renouvelable, with construction expected to begin next year. The project is scheduled for completion in 2020.
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