By Mohamed Babatunde Thorpe & Mohamed Dauda Kamara
In a strategic move to combat rolling blackouts and bolster the nation’s power infrastructure with renewable energy solutions, the U.S. International Development Finance Corporation (DFC), represented by Deputy Chief Executive Officer Nisha Biswal, joined forces with Sierra Leone’s Chief Minister, David Moinina Sengeh, to announce a ground breaking financial initiative totalling up to $412 million.
The financing arrangement comprises a substantial loan of up to $292 million to the Western Area Power Generation Project, based in Freetown, aimed at enhancing and modernizing the power plant’s infrastructure. Additionally, DFC is set to provide up to $120 million in political risk insurance to attract private investment, with further support from a $40 million loan from the ECOWAS Bank for Investment and Development (EBID).
“Sierra Leone’s vision for a sustainable energy future is on the brink of realization,” expressed DCEO Biswal. “DFC takes pride in backing the nation’s inaugural large-scale, independent power endeavor, laying the groundwork for dependable and cost-effective electricity access across Sierra Leone.”
The project, spearheaded by Milele Energy and TCQ Power, marks a significant milestone as Sierra Leone’s first utility-scale independent power initiative. Shapoorji Pallonji is slated to oversee construction, with Siemens Energy providing gas and steam turbine equipment, alongside long-term servicing and maintenance.
Echoing sentiments of optimism, Sierra Leone’s Chief Minister affirmed, “Our commitment to providing reliable, clean, and sustainable energy solutions is unwavering. Through innovative public-private partnerships like this, we prioritize impactful progress, ensuring support for our national development objectives.”
U.S. Ambassador to Sierra Leone, Bryan David Hunt, hailed the project’s potential to revolutionize the nation’s energy landscape, fostering progress and prosperity.
“The United States stands proud in supporting this private sector initiative, poised to uplift communities nationwide,” he stated.
Milele Energy CEO Erik Granskog expressed gratitude for the support, emphasizing the transformative impact on Sierra Leoneans’ lives. “This project will lower costs, enhance reliability, and stimulate industrial growth, unlocking critical energy potential,” he remarked.
Similarly, TCQ Power Limited CEO Karim Nasser underscored appreciation for DFC and EBID’s backing, emphasizing a shared commitment to Sierra Leone’s populace. “We are dedicated to delivering sustainable power solutions, advancing the nation’s prosperity and resilience,” Nasser affirmed.
The collaboration between DFC and Sierra Leone reflects a concerted effort to foster economic growth, sustainability, and resilience, aligning with broader developmental objectives.
The Deputy Chief Executive Officer of DFC, Nisha Biswal with Sierra Leone’s Chief Minister, David Moina Sengeh revealed that the $ 412 million financial support by the United States government is mainly to address the country’s unreliable electricity power supply.
Since Sierra Leone gained Independence in 1961, unreliable energy has been an aged-long crisis, dragging the country into electric fluctuations, but the $ 412 Million by the US government will help to sustainably address and expand the country’s energy sector.
A new loan of about $ 292 Million has been also approved by the DFC for the Freetown-based Western Area Power Generation Project, with the aim of upgrading the infrastructure of the power plants, thereby providing reliable energy in Freetown.
The project, which is set to fully address the country’s disturbing energy sector, will sponsor the Milele Energy and TCQ Power, serving as the first utility-scale, independent power project in the country — which will be constructed by Shapoorji Pallonji with ‘gas and steam turbine equipment. It will become the country’s main source of power generation after the construction.
Milele Energy is founded by a team of former GE Africa executives to develop, own, and operate power-generation facilities through renewable and clean gas technologies. Milele is a Nairobi-based independent power-generation company across the Sub-saharan Africa. Biswal asserted that the country’s vision for a sustainable energy future is becoming a reality, saying that they are proud to support the country’s first, large, utility-scale, independent power project.
Chief Minister Sengeh underscored the government’s commitment in providing reliable and sustainable energy, despite facing a public backlash in recent weeks over the country’s disturbing power outage. “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.”
However, DFC has promised to also provide at least $ 120 Million in “political risk insurance to crowd-in private investment in the country, coupled with a $ 40 Million financial boost by the ECOWAS Bank for Investment and Development. The US Ambassador to Sierra Leone Bryan David Hunt said that the Western Area Power Generation Project is poised to revolutionize the country’s energy landscape.
“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,” he said. In what appears to be the transformation of the country’s degrading energy sector, the CEO of Milele Energy, Erik Granskog, expressed his dedication to unlock some of the most critical energy projects in Africa.
