On Tuesday, Tè Power Company S.A.S.U. (TPC) announced that it has reached financial close and commenced construction of the $121 million Tè Power Plant in Conakry, Guinea.
Developer and majority project owner, Endeavour Energy, highlighted that the 50MW greenfield thermal power plant, will be the first internationally development finance institution project-financed independent power project in Guinea and meets the most stringent local and international (World Bank/IFC) environmental requirements.
The Tè Project is specifically designed to help alleviate the power deficit in Guinea and provide reliable power as needed to meet the country’s future power demand in conjunction with Guinea’s ambitious renewable energy agenda and seasonal hydroelectric power generation. Read more: EximBank approves $1.3bn for hydropower plant
“Guinea has made great strides over recent years to strengthen its power sector whilst at the same time creating an environment for international investing,” stated Sean Long, Chief Executive Officer of Endeavor.
Endeavor is an Africa-focused independent power company backed by global private equity firm Denham Capital. Endeavor’s minority partner in the Tè Project is Energie, Environnement et Mines S.A. (E2M), a Mauritanian mining and power company.
The plant’s construction is expected to take 15 months, coming online in mid-2019, and create up to 150 jobs (majority Guineans).
In addition, up to 40 people will be employed during operations and once constructed, the plant will improve electricity access for over 1,000,000 Guineans.
Aligned with national development goals
Amadou Ba, President of Tè Power Company S.A.S.U., commented: “The Tè Project is fully aligned with Guinea’s national economic and social development goals and represents the first step in Endeavor Energy’s commitment to a growing partnership with the Government of Guinea and to delivering additional power solutions in the years ahead for the people of Guinea.”
Juergen Heeg, director at Denham Capital, highlighted: “We’re pleased to have partnered with Guinea on this investment and proud that the Tè project has moved forward to the construction phase with our partners. The Tè Project will have a significant developmental impact in Guinea, providing low cost, reliable power, local jobs and indirect economic and social benefits, while also supporting the country’s energy transition.”
The $121 million investment required for the Tè Project comprises $32 million in equity from Endeavor and $89 million in debt financing from the Overseas Private Investment Corporation (OPIC) and CDC Group PLC (CDC). In addition, OPIC provided up to $30 million of political risk insurance.
“The Tè Power thermal plant will increase power supply by as much as ten percent and help Guinea meet its growing energy demand, which is projected to triple over the next ten years,” said Ray Washburne, OPIC President and Chief Executive Officer.
Washburne added: “This project is a tremendous development opportunity and supports our broader effort to bring greater connectivity to Africa. It will have a huge impact in providing much needed power to help sustain the country’s development and economic growth.”
Power Africa programme
The Tè Project is another achievement for the U.S. Power Africa programme and its partners OPIC, Endeavor, and Denham Capital.
Andrew M. Herscowitz, Coordinator for Power Africa, the U.S. government-led initiative to double access to electricity by 2030, said: “Power Africa is proud to have provided assistance to our partner Endeavor Energy and Denham Capital through the U.S. Agency of International Development and the Departments of Commerce and State, and today we congratulate them and the people of Guinea for reaching financial close on the Tè Project.”