DFC, Sierra Leone Promote Access to Reliable Energy with up to $412 Million in Additional Financing and Political Risk Insurance
Tuesday, June 18, 2024: DFC Groundbreaking for Power Generation Project File Photo
The United States Millenium Challenge Corporation (MCC) and the Government of Sierra Leone signed a $480 million compact agreement to strengthen Sierra Leone’s energy sector. U.S. Ambassador Bryan Hunt noted that, “As the impact of any such investment depends on sustained democratic reforms, the full and expeditious implementation of the Agreement for National Unity and the joint recommendations of the Tripartite Committee will remain key requirements for compact implementation.”
The United States Millenium Challenge Corporation (MCC) and the Government of Sierra Leone signed a $480 million compact agreement to strengthen Sierra Leone’s energy sector
The power plant, the Western Area Power Generation Project, will be located in Sierra Leone’s capital Freetown, and is intended to help address the country’s rolling blackouts and expand its national electricity system to accommodate additional renewable energy solutions in the future.
"DFC is proud to support the country’s first large utility-scale, independent power project and lay the foundation for reliable and affordable electricity in Sierra Leone,” said Nisha Biswal, Deputy Chief Executive Officer at DFC.
Today, on Tuesday, June 18, 2024, Sierra Leone took a significant step towards addressing its electricity challenge with the launch of the first Gas Power Generation Plant at the Kissy Fuel Terminal.
According to @DFCgov-Twitter handle, formerly 'X,' The Nant Energy project is set to nearly double Sierra Leone's energy capacity.
READ: Media Release Readout of DFC Groundbreaking for Power Generation Project
Phase one of the project will generate 83.5 MW with two GE LM2500 turbines in a combined cycle with a steam turbine.
The second phase entails 43 MW of additional capacity from a second combined cycle power plant. Other work for the contractor includes upgrades to existing substations and construction of transmission lines to the existing electric grid.
DFC-DCEO Nisha Biswal met with President Bio in Freetown. DFC is committed to investing in projects that foster economic growth and prosperity for the people of Sierra Leone
May 08, 2024
DFC, Sierra Leone Promote Access to Reliable Energy with up to $412 Million in Additional Financing and Political Risk Insurance
DALLAS, TEXAS – The U.S. International Development Finance Corporation’s (DFC) Deputy Chief Executive Officer (DCEO) Nisha Biswal and Chief Minister of Sierra Leone David Moinina Sengeh today announced up to $412 million in financing and political risk insurance in support of the country’s plans to address rolling blackouts and expand its power system through renewable energy solutions in the future.
DFC approved a new loan of up to $292 million to the Freetown-based Western Area Power Generation Project to help develop and upgrade the power plant’s infrastructure, promoting reliable access to power throughout Sierra Leone. DFC will also provide up to $120 million in political risk insurance to crowd in private investment. The financing package is bolstered by a $40 million loan from ECOWAS Bank for Investment and Development (EBID).
“Sierra Leone’s vision for a sustainable energy future is becoming a reality,” DCEO Biswal said. “DFC is proud to support the country’s first, large, utility-scale, independent power project and lay the foundation for reliable and affordable electricity in Sierra Leone.”
Project sponsors Milele Energy and TCQ Power are developing the project – the first utility-scale, independent power project in Sierra Leone, which will be constructed by Shapoorji Pallonji with gas and steam turbine equipment as well as long-term servicing, and operation and maintenance from Siemens Energy. The project will become Sierra Leone’s main source of power generation upon completion.
The Chief Minister of the Government of Sierra Leone said, “The Government of Sierra Leone is committed to providing reliable, clean, affordable, and sustainable energy solutions to support our national development efforts. We are happy to do so via innovative public and private sector programs like this one that prioritizes impact. We will provide all the requisite support for this partnership.”
U.S. Ambassador to Sierra Leone Bryan David Hunt said, “The Western Area Power Generation Project is poised to revolutionize Sierra Leone’s energy landscape, bringing opportunity to communities across the nation. Its impact will be profound, fueling progress, prosperity, and a brighter future for all Sierra Leoneans. The United States is proud to support this private sector initiative.”
“The unwavering commitment shown by DFC and EBID to ensure that this transformational project is realized will improve the lives of millions of Sierra Leoneans,” said Milele Energy CEO Erik Granskog. “Milele Energy is dedicated to unlocking some of Africa’s most critical energy projects and we applaud the Government of Sierra Leone for concluding this project that will lower cost, improve reliability, and allow for the expansion of industrial demand.”
“We are immensely grateful for this support from DFC and EBID that enables this next stage of development. It demonstrates their belief in, and commitment to, the people of Sierra Leone,” said TCQ Power Limited CEO Karim Nasser. “We also extend our profound gratitude to His Excellency President Maada Bio for his steadfast support over the years. We are committed to delivering this sustainable power solution to the people of Sierra Leone and look forward to executing the next steps and construction.”
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About DFC:
The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
About Milele Energy:
Milele Energy, founded by a team of former GE Africa executives, is a Nairobi-based independent power-generation company across Sub-Saharan Africa. Milele develops, owns, and operates power-generation facilities leveraging both renewable and clean gas technologies. Backed by Gemcorp Capital, Milele’s investments are poised to positively empower lives and communities in Africa. Gemcorp Capital Management Limited is an independent investment management firm focused on emerging markets and has facilitated over $7 billion worth of investments in public and private credit and equity transactions since inception. Milele Energy is Powering Africa’s Bright Future.
About TCQ Power:
TCQ Power is a turnkey power project developer with a focus on early conceptualization tailored towards the MENA markets. Through strong cooperation with local governments and suppliers, TCQ Power aspires to mitigate risks at an early stage of development before breaking ground, thus lending credibility to sustainable, long-term, independent projects that are fully operable assets by the host nations at the time of handover.
For media inquiries please contact U.S. Embassy Media Coordinator Alhassan Jalloh, jalloha@state.gov.