02-03-99 The Senegalese Government announced that the HQI-ELYO consortium was purchasing 34 % of the shares of SENELEC for $ 100 mm including $ 50 mm by HQI. The consortium has thus become a strategic partner of SENELEC, and will be responsible for managing all electricity production, transmission and distribution activities.
The Senegalese government will retain up to 41 % of the shares, while SENELEC employees will be able to buy up to 10 % of the shares. HQI is pursuing efforts with Senegalese and Quebec investors, including the Quebec Federation of Labour (QFL) Solidarity Fund, to have them participate in the ownership of SENELEC.

The acquisition of SENELEC is of strategic importance to HQI, giving it a position in a part of the world where the privatisation of a number of electricity utilities is under way, as well as interconnection projects. This particular bidding process brought the HQI-ELYO consortium into competition with Electricite de France (EDF).
The potential economic spin-offs for Quebec over 10 years are estimated at more than $ 200 mm.
For HQI, besides dividends in the order of $ 9 mm a year, other economic spin-offs are related to providing experts to manage SENELEC, and to selling professional engineering and project-management services for production, transmission and distribution projects. The potential spin-offs for Quebec companies will come mostly from consulting and engineering services and from supplying equipment for the power plants and materials for the power system.

Senegal has experienced an average increase in electricity demand of 5.5 % over the last five years. SENELEC has an installed capacity of 307 MW (31 power plants) and serves more than 330,000 customers (a 44 % increase from 1990-1996). Its transmission system extends over nearly 6,000 km. SENELEC has revenues of $ 200 mm and employs more than 2,000 workers.

ELYO, HQI's partner in the consortium, specialises in co-generation and in managing the maintenance, distribution and production of electricity. It has revenues of $ 3 bn.

HQI has been active in Senegal for more than 15 years. In particular, it has participated with SNC-Lavalin in studies on the development of the Senegal River (OMVS), and with Dessau on the development of the Gambia River (OMVG). HQI is currently completing a turn-key project for a 37.4 MW thermal power station in Senegal.