The CLSG project, on course for effectiveness


Abidjan – The interconnection energy project within the West Africa Power Pool (WAPP) framework has taken important steps toward its effectiveness during the past weeks. The sub-regional interconnection project referred to as CLSG project, or the Cote d’Ivoire, Liberia, Sierra Leone and Guinea project, remains on course for implementation.

TRANSCO CLSG, a special Purpose Company (SPC), has been established by the four countries and is responsible for the financing, construction, ownership, operation and maintenance of the interconnection CLSG Project.

TRANSCO CLSG recently organized a four-day meeting at the Palm Club Hotel in Abidjan from the 9th to 12th of December 2014 to discuss a commercial framework of the CLSG Project. Finalization of this framework is one of the conditions precedent to the effectiveness of the CLSG Project.  Legal and power trading experts attended the meeting from the various power utilities of the CLSG countries including Cote d’ivoire, Liberia, Sierra Leone and Guinea.

The delegates discussed and negotiated the adoption and endorsement of the commercial Termsheets for power purchase (PPAs) and transmission service agreements (TSAs). Following the four-day of deliberations, the stakeholders worked on the finalization of these termsheets and unanimously endorsed them.

In his welcome remarks, the General Manager (GM) of TRANSCO CLSG, Mr. Mohammed M. Sherif who chaired the meeting challenged the stakeholders to work hard in guaranteeing the seamless operation of the invaluable energy project by endorsing these termsheets. The GM noted that signing the PPAs and TSAs are conditions precedent to first disbursement of funds and as such due diligence must be taken to conclude the necessary discussions leading to negotiations and execution of the PPAs and TSAs.

Mr. James Schmidt, the independent Consultant, who supported the preparation of the project commercial framework participated in the meeting. His presentations on an Overview of the Terms of the Transmission Service and the Power Purchase Agreements were discussed and agreed upon by all delegates.

The presentation on the TSAs underlined issues on coordination of transmission service with delivery of energy under the PPAs, commercial responsibility for electricity losses- under different operating scenarios, metering, billing and payment guarantees among others. The meeting reaffirmed that the initial Term of the Power Purchase Agreement will be 10 years from Commercial Operation Date of TRANSCO CLSG’s transmission system.

TRANSCO CLSG’s GM Mohammed M. Sherif, thanked the delegates and acknowledged the signing of the termsheets has pumped fresh synergy into the interconnection project. “I have the passion and commitment to succeed…,” he emphasized and called for solid stakeholders’ support to keep the CLSG project on track for success. In return, delegates assured the GM of their unwavering supports and commitment to move the project forward.

The delegates also registered their appreciation to  TRANSCO CLSG for organizing the consultation meeting which showed high commitment in fast tracking of the project preparation to facilitate the expedient implementation of the CLSG Interconnection Project. They expressed their profound gratitude to the People and Government of the Republic of Côte d’Ivoire, particularly to His Excellency, Alassane Ouattara, President of the Republic, for the warm hospitality enjoyed by participants during their stay in Abidjan.

Meanwhile, Cote d’Ivoire (CI) Energies has reaffirmed the country’s commitment to making available 83 MW on the CLSG Interconnection Line. Each country will take 1/3 of this amount.

CLSG Headquarters Agreement

In a related development, the TRANSCO CLSG headquarters (HQ) agreement has been signed with the Government of Cote d’Ivoire on December 3, 2014. The agreement was signed by Mr. Amadou Diallo, Secretary General of WAPP on behalf of TRANSCO CLSG and Mr. Charles Koffi Diby, Minister of Foreign Affairs signed for the Government of Cote d’Ivoire.

The TRANSCO CLSG GM said the HQ agreement signature is another ground-breaking moment for the energy project. The agreement seals the supranational energy company’s presence in Abidjan.

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