By Amin Kef (Ranger)
The U.S. International Development Finance Corporation’s (DFC) Deputy Chief Executive Officer (DCEO), Nisha Biswal, and the Chief Minister of Sierra Leone, Dr. David Moinina Sengeh, on Wednesday May 8, 2024, in Dallas, Texas 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, operation and maintenance from Siemens Energy. The project will become Sierra Leone’s main source of power generation upon completion.
The Chief Minister Dr. David Moinina Sengeh 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 to conclude 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 on the next steps and construction.”
In another development Dr. Moinina Sengeh, during the U.S. -Africa Business Summit in a High Level Dialogue on Critical Minerals, engaged with a Conglomerate of Energy Companies in Texas, and in the room with the Chief Minister were the Deputy Minister of Finance, Ms Kadie Allie, and the Minister of Energy Hon. Edmond Nuni, and Sierra Leone’s Ambassador to United States, and people from the private sector investing in Sierra Leone.
The Sierra Leone team on energy extensively explored the opportunity of working with the Energy Conglomerates in Texas. Chief Minister mentioned to energy conglomerates that DFC, MCC are major United States financial institutions that are working with the Government to ensure energy is generated for the people Sierra Leone.
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.
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.
TCQ Power is a turnkey power project developer with a focus on early conceptualization tailored towards the MENA markets.
