Sierra Leone’s dream of reliable electricity receives a boost from United States IDFC loan

Sierra Leone Telegraph: 12 December 2024:

The U.S. International Development Finance Corporation (IDFC) on Tuesday, announced the first disbursement out of a $292 million loan to support CECA SL Generation Limited, an entity that will construct and operate a 105MW combined-cycle power plant in Freetown, Sierra Leone through a project knows as “Nant”

A statement published on Tuesday by IDFC, says that its support of the Nant Project, along with the ECOWAS Bank for Investment and Development (EBID), is expected to nearly double the electricity generation capacity of Sierra Leone.

Although Sierra Leone needs at least one gigawatt of electricity to power its economic development, there is little doubt a 105MW will go a long way to meeting some of the immediate and pressing demand, especially in the capital Freetown.

The Nant Project will be the first large, utility-scale independent power project in Sierra Leone and will supply reliable electricity to address the country’s critical long-term power needs.

The loans from DFC and EBID will enable the country to meet energy access goals and replace high-cost temporary solutions. The Governments of the United States and Sierra Leone have partnered to attract private investment into the sector and set a goal of creating one gigawatt of energy capacity over the next decade, the statement reads.

“The scale and impact of the Nant Project make it a standout example of what DFC and partner institutions like EBID can accomplish when working together with our private sector partners to benefit the communities where we operate. This transaction is a major milestone for Sierra Leone’s energy security and economic development and represents the largest percentage increase in energy capacity in a single country of any DFC project,” said Scott Nathan, DFC CEO.

“As the regional development finance institution serving the Economic Community of West African States (ECOWAS) region, EBID is proud to play a catalytic role in unlocking the vast potential of West Africa. Our partnership with DFC to finance this critical energy infrastructure project in Sierra Leone marks a significant milestone in this journey, supporting the country’s transformative path towards economic growth, improved fiscal balance, and a brighter future for its people,” said Dr. George Agyekum Donkor, ECOWAS President.

“This project aligns with our mission to promote economic development and regional integration, and our vision of a prosperous and fully integrated ECOWAS region. As part of our commitment to improving economic outcomes for the people of the sub-region, the Bank has invested about $4.2 billion in key sectors, including infrastructure development and energy access. We hope this project’s success will pave the way for more collaborations that benefit vulnerable populations across the ECOWAS region,” said said Donkor.

“It is with immense pride and gratitude that I reflect on the 12-year journey that has brought us to this significant milestone. This project is not just an achievement for TCQ, but a testament to the resilience and vision of Sierra Leone. We extend our deepest thanks to His Excellency, the president of Sierra Leone, and the people of this nation for their unwavering trust and support. Your belief in our vision has been the cornerstone of our progress,” said Karim Nasser, TCQ Power CEO.

“We are also profoundly grateful to DFC, EBID and our esteemed partner, the Anergi Group, for their pivotal roles in bringing this deal to fruition. Their collaboration and commitment exemplify the transformative power of partnership, enabling us to bring reliable and sustainable energy solutions to Sierra Leone. Together, we are lighting the path to a brighter, more prosperous future for this nation and its people,” said Nasser.

“The financial close of the Nant Project is an important step forward for Sierra Leone’s power sector, improving energy reliability and quality for Freetown’s residents and businesses and beyond. This achievement shows what can be accomplished when committed partners collaborate toward meaningful solutions. We appreciate the hard work and commitment of the Government of Sierra Leone, TCQ, DFC, and EBID. Anergi is proud to contribute to sustainable, long-term energy solutions across Africa,” said Maria Stratonova, Anergi CEO.

“The Nant Project is a landmark initiative that underscores Sierra Leone’s commitment to building a resilient and diversified energy future. Thanks to the pivotal investment by DFC, this 105MW combined-cycle power plant will transform our energy landscape by delivering reliable and secure electricity to power development, drive economic growth, and create job,” said Hon. Dr. Kandeh Kolleh Yumkella, Chairman of the Energy Governance Coordination Group (Photo above).

“This project aligns with our broader goals under the $480 million MCC Compact and Sierra Leone’s Just Energy Transition and Green Growth Plan. It will significantly reduce our dependence on imported fuels and mitigate the vulnerabilities associated with high-emission, unreliable, or weather-dependent energy sources like hydropower. By expanding access to electricity, promoting energy security, and fostering innovation, the Nant Project advances our journey towards sustainable development and strengthens the resilience of our energy sector for the benefit of all citizens,” said Yumkella.

DFC’s investments in energy projects provide reliable and secure electricity to drive development, promote economic growth, and create jobs. By expanding electricity access, diversifying energy sources, and supporting emerging energy technologies, the Nant Project enhances energy security and fosters innovation, contributing to sustainable development and resilience for Sierra Leonean citizens.

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, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.    

About EBID

ECOWAS Bank for Investment and Development (EBID) is the leading regional investment and development bank, owned by the 15 ECOWAS Member States, namely, Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. EBID is based in Lomé, Togolese Republic.    

About TCQ

TCQ Power is a turnkey power project developer specializing in early-stage conceptualization and execution, with a strategic focus on the MENA and Sub-Saharan Africa markets. By fostering robust partnerships with local governments, suppliers, and stakeholders, TCQ Power ensures early identification and mitigation of project risks, setting the foundation for sustainable long-term solutions. TCQ Power is dedicated to delivering energy projects that drive development, inspire confidence, and contribute to a brighter future.    

About Anergi

Anergi is a leading diversified power company that develops, owns, and operates power plants across Sub-Saharan Africa. Anergi’s portfolio comprises six assets, which are contracted to produce a combined gross ~1,529MW of thermal and renewable energy. The portfolio supplies energy to about 25 million customers across five African countries: Ghana, Kenya, Nigeria, South Africa, and Sierra Leone. Anergi continues to develop significant and impactful energy projects in countries within Sub-Saharan Africa, thereby further entrenching itself as a leading Africa-focused power company. Anergi is wholly owned by Harith InfraCo Ltd. and the Pan-African Infrastructure Development Fund 2, managed by Harith General Partners, a leading pan-African fund manager and investor in infrastructure assets.    

 

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