In a landmark move to address energy challenges and bolster economic development, the U.S. International Development Finance Corporation (DFC) has teamed up with Sierra Leone to announce up to $412 million in financing and political risk insurance. This collaboration aims to support the country’s efforts to tackle rolling blackouts and expand its power system through renewable energy solutions.
The Deputy Chief Executive Officer of DFC, Nisha Biswal, alongside Sierra Leone’s Chief Minister, David Moinina Sengeh, unveiled the ambitious financing package. DFC’s approval of a new loan of up to $292 million to the Western Area Power Generation Project, based in Freetown, marks a significant step towards enhancing access to reliable electricity throughout Sierra Leone. Additionally, DFC will provide up to $120 million in political risk insurance to attract private investment, further amplifying the impact of the initiative.
“This partnership reflects Sierra Leone’s vision for a sustainable energy future,” remarked DFC’s Deputy CEO, Nisha Biswal. “By supporting the country’s first large-scale independent power project, DFC is laying the foundation for reliable and affordable electricity in Sierra Leone.”
The project, spearheaded by Milele Energy and TCQ Power, represents the first utility-scale independent power project in Sierra Leone. Upon completion, it will become the country’s primary source of power generation. With construction slated to be undertaken by Shapoorji Pallonji, and with equipment and services provided by Siemens Energy, the project promises to revolutionize Sierra Leone’s energy landscape.
Expressing the government’s commitment to advancing clean and sustainable energy solutions, Sierra Leone’s Chief Minister stated, “We are delighted to collaborate on innovative public-private initiatives like this one, prioritizing impactful interventions to support our national development agenda.”
U.S. Ambassador to Sierra Leone, Bryan David Hunt, hailed the project as a transformative endeavor that will empower communities across the nation. “Its impact will be profound, fueling progress, prosperity, and a brighter future for all Sierra Leoneans,” Ambassador Hunt emphasized.
The financing package, which includes a $40 million loan from the ECOWAS Bank for Investment and Development (EBID), underscores a concerted effort to mobilize resources and expertise in support of Sierra Leone’s energy ambitions.
Milele Energy CEO, Erik Granskog, expressed gratitude for the support from DFC and EBID, emphasizing the project’s potential to lower costs, improve reliability, and spur industrial expansion. Similarly, TCQ Power Limited CEO, Karim Nasser, highlighted the company’s commitment to delivering sustainable power solutions and extended appreciation to President Maada Bio for his steadfast support.
As Sierra Leone moves towards a brighter energy future, the partnership between DFC, private sector entities, and the government holds promise for transformative change, paving the way for increased access to reliable electricity and economic prosperity for all.
