Following the agreement between the government of Sierra Leone, Endeavor Energy and Joule Africa for the 202 MW Bumbuna phase II hydroelectric project in that country, Endeavor Energy, which received an initial commitment from Denham’s US$3 billion Fund VI in June 2013, has agreed to fund the remaining development costs for the project and will invest up to 75% of the equity at financial close (estimated US$150 million).
Joule Africa has completed the feasibility study for the development of the second phase of Bumbuna and, the parties are now ready to launch the engineering, procurement and construction (EPC) tender.
A shortlist representing some of the most respected EPC firms from across five continents has been selected. International hydro engineering firm, Lahmeyer International, has carried out the feasibility and design work, whilst environmental and social studies are also being carried out by Environmental Resources Management.
Lenders to the project will likely include the African Development Bank, IFC and Emerging Markets Infrastructure Fund along with a club of European development finance institutions.
Sierra Leone’s minister of energy Oluniyi Robbin-Coker says, “We are delighted by the progress made by Joule Africa and the manner in which they have engaged in the issues of concern to the government of Sierra Leone. We are hopeful that this important project will be developed to the highest international standards, delivering a timely expansion to the current installed energy generation capacity in Sierra Leone.”