Finnish technology group Wärtsilä (HEL: WRT1V) has recently signed a two-year service agreement with ContourGlobal, a global energy provider owned by U.S. investment company KKR & Co. Inc. (NYSE: KKR), to ensure supply reliability of the customer’s Cap des Biches power plant situated in Dakar, Senegal.
The service agreement was included in Wärtsilä’s order book in March 2023, according to a company statement published Monday.
As a contributor to the national grid managed by Senelec, the national electricity distributor, the Cap des Biches power plant, which has a generation capacity of 86 MW, underscores the importance of consistent power supply.
To address this, Wärtsilä’s comprehensive service agreement aligns with ContourGlobal’s commercial and contractual requirements, ensuring uninterrupted power delivery.
The deal encompasses a spectrum of provisions, including an array of spare parts to facilitate major engine overhauls, the option for field service experts to conduct maintenance operations, and a performance guarantee aimed at minimizing downtime during scheduled maintenance activities.
ContourGlobal’s Africa CEO, Ara Hovsepyan, affirmed the synergy between the two entities, stating, “This agreement provides us with important guarantees that will allow us to supply electricity to the grid in line with our commitments. Furthermore, it provides predictability of costs, while freeing our people to focus on their core business.”
Marc Thiriet, Energy Business Director for Africa at Wärtsilä, emphasized the enduring partnership with ContourGlobal and highlighted the role of such long-term deals in Wärtsilä’s customer-centric approach.
“Long-term service agreements are a central element in our lifecycle support approach to meeting the specific operational needs of our customers. They come with guarantees that promote both reliability and operational performance,” he said.
On previously occasions, Wärtsilä has supplied engines and energy storage systems to ContourGlobal’s power plants across Africa and the Caribbean.