Globeleq, CDC and TCQ Power project breaks ground in Sierra Leone
LONDON, March 7, 2018 /PRNewswire/ -- Globeleq, a leading independent power company in Africa, along with CDC Group plc (CDC) and TCQ Power, have celebrated the start of construction of the 57 MW Western Area Power Generation Project in Sierra Leone with a ground breaking event. The President of the Republic of Sierra Leone, His Excellency, Dr Ernest Bai Koroma, led the ground-breaking ceremony at the future power plant site.
Working alongside CDC, the UK's development finance institution, and TCQ Power, who have been developing and financing the project, Globeleq will develop and oversee the construction and operations of the Western Area Power Generation Project located in the Kissy Dock area, approximately 4km east of the centre of Freetown.
Wärtsilä, the appointed engineering, procurement and construction contractor, will design and build the plant, and once completed will provide full operations and maintenance services to the plant for 15 years. Two expansions of the plant to 128MW are envisaged but have not yet been planned.
BB Energy, an independent energy trading company, will provide HFO under a 15-year fuel supply agreement and electricity will be sold under a 20-year power purchase agreement with EDSA, the Sierra Leone state owned utility, and the Government of Sierra Leone.
The project will benefit from World Bank Group support provided by the Multilateral Investment Guarantee Agency (MIGA), the World Bank's International Development Agency (IDA) and the International Finance Corporation (IFC), which acted as the lead arranger. The Emerging Africa Infrastructure Fund part of the Private Infrastructure Development Group and managed by Investec Asset Management, acted as structuring bank. Other lenders include CDC, FMO, and the African Development Bank.
Sameh Shenouda, CDC's Director and Head of Infrastructure commented: "The ground-breaking of the Western Area Power Generation Project is an important step in increasing Sierra Leone's electricity generation potential. CDC is playing an important and growing role in supporting economic development in Sierra Leone and our support for the project will increase the country's baseload capacity by more than 50%. Globeleq has a long history of operating and developing power projects across Africa and will bring expertise and a local team to operate the project, which will provide much-needed energy to businesses and households across the country."
Karim Nasser, CEO, TCQ Power added: "This groundbreaking event moves us closer to delivering more electricity to the people of Sierra Leone and unlocking opportunities for growth. TCQ has been working on the project since 2012 and we are extremely proud to reach this critical milestone together with our partners. This power station represents a monumental step forward for the country and clearly demonstrates the government's ability to draw private investment into complex infrastructure projects. All this could not have been possible without the government's implementation of bold and decisive reforms to make the energy sector bankable."
"We are very excited at the opportunity to participate with CDC and TCQ in Sierra Leone. It provides Globeleq with the opportunity to develop relationships with key decision makers and enables us to support the sector and build more generation in the country," Globeleq's CEO, Paul Hanrahan remarked.
About Globeleq
Globeleq is a leading developer, owner and operator of electricity generation in Africa. Its experienced team of professionals have built a diverse portfolio of independent power plants, generating more than 1,200 MW in 8 locations across 5 countries. The company has around 2,000 MW of power projects in development and plans to add significant MW of new power generation during the next 10 years. For more information, go to www.globeleq.com
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