As the 143MW Bumbuna II Hydroelectric power project (Bumbuna II) in Sierra Leone enters the final stages of development, ElectriFI, the Electrification Financing Initiative, has committed US$3.5m of development capital to finance 50% of the external development expenses needed to reach financial close of the project.
Joule Africa, the project sponsor, signed a 25-year PPA with the Government of Sierra Leone in August 2017 and selected a preferred EPC contractor to construct the project in February 2018. Mandated Lead Arrangers for the debt finance will be selected by Joule Africa shortly and construction is scheduled to begin by the end of 2019.
Andrew Cavaghan, Founder and Executive Chairman of Joule Africa Limited, said:
“We are delighted to have secured the support of ElectriFI at this critical stage of development as we ramp up to finalise the financing and start construction. Our team is now focused on completing the remaining activities so that the construction of this important project can begin.
“When complete, Bumbuna II will provide much-needed, affordable, reliable and clean power for the people of Sierra Leone where access to electricity is currently under 20%.”
Dominiek Deconinck, ElectriFI Fund Manager, commented:
“Bumbuna II is crucial for the Government of Sierra Leone to stimulate its energy sector and support its economic growth strategy. Bumbuna II will double the national generation capacity; indirectly encourage investments in transmission and distribution network; and allow the Government to show it is capable of managing large international infrastructure investments such as this.
Joule Africa has demonstrated its capabilities as a professional, dedicated project developer, taking its role seriously, in particular by urging the adequacy of capacity in the Government and by pursuing net gains for the communities and the environment affected by the Project.”
ElectriFI, the Electrification Financing Initiative, is an impact investment facility with a mandate to invest in on- and off-grid early-stage private companies and projects focusing on new/improved connections, as well as on generation capacity from renewable energy sources in emerging markets. Typical business models include solar home systems, mini-grids, IPPs and captive power production. Core investors are the European Commission and Power Africa.
ElectriFI and its sister-fund AgriFI are managed by EDFI Management Company in close association with the 15 European Development Finance Institutions (EDFI) as well as many other like-minded investors.
For more information, please visit www.electrifi.eu.
Note to Editors:
Bumbuna II Hydropower project:
Bumbuna II is Sierra Leone’s largest infrastructure project and is a key part of the Government of Sierra Leone’s long-term Energy Plan.
Bumbuna II will be located on the Upper Seli River in North East Sierra Leone.
The project involves building an extension to the existing 50 MW Bumbuna I facility.
When complete, Bumbuna II will add 143MW of new capacity and will provide Sierra Leone with a minimum of 80MW of reliable, all-year round affordable electricity.
For further details on Bumbuna II, please visit our local project company’s website at www.selihydropower.sl
Joule Africa is a developer owner-operator of sustainable power projects across Africa. In addition to Bumbuna II, Joule Africa is developing Kpep, a 285MW hydro project in Cameroon, while considering various options for its third project.
Joule Africa puts sustainable development and transparency at the heart of its business practice. The company works closely with all of its stakeholders to create infrastructure assets that will generate long-term value and is dedicated to working closely with Governments to help deliver projects that complement existing plans for social and economic development.
For further details on Joule Africa, please visit: www.jouleafrica.com.