Endeavor Energy, a privately owned independent power development and generation company, and international power developer Joule Africa are to develop and construct the US$700 million Bumbuna phase II power project, a hydroelectric power scheme in Sierra Leone projected to add an additional 202 MW to the existing 50 MW at Bumbuna phase I.
Bumbuna phase II is the first project for Endeavor Energy, which was formed in June 2013 following an initial commitment from energy-focused global private equity firm Denham Capital’s US$3 billion Fund VI. Endeavor Energy has agreed to fund the remaining development costs for the project and expects to invest up to 75% of the project’s equity at financial close estimated at US$150 million.
“We are pleased to begin our first project after such a short period of time and to team up with our great partners Joule Africa and the Government of Sierra Leone to launch Bumbuna Phase II,” Sean Long, CEO of Endeavor Energy, says. “We are also delighted by the work Joule Africa has done thus far on the project with the government of Sierra Leone. We welcome the opportunity to help complete it in order to provide much needed low-cost power generation to the citizens of Sierra Leone.”
In addition to Bumbuna phase II, Endeavor Energy is in discussions to acquire and develop a number of other thermal and hydro power generation opportunities throughout Africa. “We are likely to commit to complete the development of our second project, an estimated US$500 million power generation project in sub-Saharan Africa, before the end of this year. We continue to see a robust market and a need for independent power generation companies like Endeavor Energy to invest both development capital and equity capital in power generation projects in Africa.”
Joule Africa is an international company engaged in the development of renewable energy projects in Africa with offices in London, Freetown and Yaounde. Working in sub-Saharan Africa, Joule Africa is currently developing the 200 MW expansion of the 50 MW Bumbuna hydroelectric power plant in Sierra Leone, as well as the 485 MW greenfield Katsina Ala hydroelectric power project in Cameroon.