The Government of Gabon and Wärtsilä sign the Concession Agreement for the Owendo power plant (120 MW)

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The Government of Gabon and Wärtsilä sign the Concession Agreement for the Owendo power plant (120 MW)

Libreville, September 22, 2021 – The Gabonese Fund for Strategic Investments (FGIS), Société d’Énergie et d’Eau du Gabon (SEEG) and Gabon Power Company (GPC) announce the signature of a Concession Agreement between the Republic of Gabon and Orinko, a company owned by GPC, and Wärtsilä Development & Financial Services (WDFS), a subsidiary of Finnish group Wärtsilä, a world leader in the construction, operation, and maintenance of power plants. The agreement concerns the construction of a natural gas-fired power plant with a capacity of 120 MW on the Owendo industrial site (Estuaire province).

The Convention covers the concession, granted for a period of 15 years, and the validation of the Power Purchase Agreement between Orinko and SEEG. The new power plant will be able to enter into service as early as mid-2023, due to the configuration of the electricity and gas networks which are already connected to the Owendo industrial zone. Orinko is a key component of the Transformation Acceleration Plan set by the President of the Republic, His Excellency Ali BONGO ONDIMBA.

This project, which is led by the Ministry of Energy and Hydraulic Resources, is being implemented jointly by the teams of Wärtsilä, the FGIS, GPC and SEEG. It will make it possible to meet the demand of the Estuary province, in particular the city of Owendo, the country’s largest port and the cornerstone of Gabon’s industrial system, and the urban area of Libreville, home to nearly half of Gabon’s population. This project will create significant value for Gabon and will also meet the most rigorous environmental requirements while using gas from the Gabonese subsoil.

“The Owendo project demonstrates our determination to modernize and develop the national electricity network, while minimizing the financial impact on the public treasury through the negotiation of a balanced public-private partnership for all stakeholders. The agreement with Wärtsilä also demonstrates Gabon’s attractiveness to international investors during this period of health crisis”, commented Alain-Claude Bilie-By-Nzé, Minister of Energy and Water Resources.

“The Owendo power plant project will make a critical contribution to Gabon’s electricity sector, which is in great demand due to the industrialization of the Owendo area and the sharp increase in the capital’s population. I would like to thank the teams of GPC and of the FGIS who have done a remarkable job in bringing this crucial step to a successful conclusion in a very short time”, commented Marcellin Massila Akendengué, Managing Director of Gabon Power Company.

“We warmly thank the Ministries of Energy and Hydraulic Resources, Economy and Finance, Budget and Public Accounts, Investment Promotion and Public-Private Partnerships, Budget and Public Accounts, as well as the Energy and Water Task Force for welcoming us to Gabon. We are proud to have SEEG, GPC and the FGIS as privileged partners in this power plant project. Wärtsilä is committed to accompanying Gabon towards the decarbonization of its power sector by developing cutting-edge technologies designed to increase efficiency, promote reliability and ensure long-term operational performance,” commented Nicolas Mathon, Project Development Manager – Europe & Africa, Wärtsilä.