- The DFC has signed a commitment to provide financing for a power project in Sierra leone.
- The project will have a capacity of 83MW.
- The project is expected to be completed in 2024.
The United States International Development Finance Corporation (DFC) will provide $217 million in debt financing for a new 83MW power plant in Freetown, Sierra Leone. The plant’s capacity is equivalent to the current capacity of the Bumbuna Hydropower Plant in the north of the country.
The Western Area Power Generation Project (WAPGP) has been approved since 2012 and is sponsored by Milele Energy and TCQ Power Limited. The project will generate and sell electricity to the Electricity Distribution and Supply Authority (EDSA) under a 20-year PPA.
David Marchick, DFC’s CEO, States: “DFC’s investment will substantially increase access to energy for people all across Sierra Leone, providing power generation to meet approximately 24 per cent of projected electricity demand in a country where only 15 per cent of the population has reliable access to power. This highly developmental project represents the United States’ long-term investment in Sierra Leone’s future. We also look forward to working on Sierra Leone’s transition to renewable energy sources like solar and wind power.”
David Reimer, the United States Ambassador to Sierra Leone, noted that the plant would increase generation capacity in Sierra Leone, improving lives and providing access to households for the first time and powering educational and health facilities.
Erik Granskog, CEO of Milele Energy, one of the project developers, believes that the commitment from the DFC brings the people of Sierra Leone one step close to reliable and critical electricity access. TCQ Power Limited CEO Karim Nasser added that the project “demonstrates the government’s ability to draw private investment into complex infrastructure projects”. The project is expected to be completed in Q4 2024.
Uche is a climate activist and clean energy enthusiast. He is a renewable energy analyst at The Electricity Hub. Uche has previously worked for an environmental management firm. He has a B.Sc. in Geology from the University of Nigeria.