Feasibility study of electricity interconnection lines between The Gambia and Senegal
The Gambia River Basin Development Organization (OMVG) is a sub-regional institution that brings together four member countries: The Gambia, Guinea, Guinea Bissau and Senegal. Its mission is to enhance the watersheds of the Gambia River, economic development, improve the living conditions of the riverside populations and fight poverty through programs and projects common to the 4 countries.
The OMVG has entrusted ARTELIA and Phoenix with the study of two 225 kV interconnection lines, part of a 1677 km loop linking the 4 countries:
- An East-West line between Tambacounda (Senegal) and Soma (Gambia),
- A North-South line between Brikama (Gambia) and Ziguinchor (Senegal).
The project will help improve the electricity supply to Banjul, the Gambian capital, the Basse region of The Gambia, and also to secure the regional interconnected grid.
Phoenix is responsible for the economic, financial, tariff and contractual aspects of the mission.
The economic study consisted of estimating the net economic benefits of the implementation of the project for the entire community, in this case Senegal and the Gambia, compared to a baseline situation (“no project”). The benefits and costs, including negative and positive externalities, are monetized in real terms. The project proved to be economically with higher benefits and lower financial and environmental costs than alternative solutions.
We also estimated the electricity transmission tariff to ensure the project’s financial profitability, taking into account all the financial flows generated. The approach adopted to enhance the value of the electricity transmission service was based on the notion of the “required revenue” to meet the expectations of the project developers in terms of profitability and its commitments, particularly with regard to financiers. Several tariff scenarios were studied, taking into account, in particular, different options for indexing the tariff.
Finally, a mapping of the contractual and financial relations of the actors involved in the project was proposed, in accordance with the regional sectoral regulatory directives and existing commitments.
