Bumbuna II

Period

2018

Country

Sierra Leone

Sector

Renewable energy

Financial facility

ElectriFI

ElectriFI global invested USD 3.5 million to support the Bumbuna II hydropower project, Sierra Leone’s largest infrastructure project and a key part of the government’s long term energy plan.

Project overview

EDFI ElectriFI contracted a USD 3.5m convertible loan to Joule Africa in order to finance 50% of the external final hurdle development expenses aimed at reaching financial close of its Bumbuna II project, which aims to stimulate Sierra Leone’s government energy sector and support its economic growth strategy.

Joule Africa is in late stage development of the 143 MW Bumbuna II hydro project in Sierra Leone. The project comprises a dam resulting in a new reservoir at the Yiben area and the extension of the existing Bumbuna I hydropower site, 32 km downstream. Once completed, Bumbuna II is estimated to generate 1,062 GWh per annum and will provide a minimum guaranteed 80MW power throughout the year. It will connect to the national grid and sell its output under a 25year PPA with national utility EDSA.

Funding objective

ElectriFI will provide a USD 3.5m convertible loan to Joule Africa in order to finance 50% of the external final hurdle development expenses aimed at reaching financial close of the project.

Investment rationale

The Bumbuna II project is crucial for the Government of Sierra Leone to stimulate its energy sector and support its economic growth strategy. Bumbuna will double the national generation capacity; indirectly
enable investments in transmission and distribution network; and allow the Government to show it can manage large international infrastructure investments such as this. Joule Africa has demonstrated itself to be a professional, dedicated project developer, taking seriously its role, by ensuring the adequacy of capacity in the country and by ensuring net gains to the
communities and the environment affected by the Project.