In collaboration with the government of Sierra Leone, the U.S. International Development Finance Corporation (DFC) has mobilized $414 million for the development of the Western Area Power Generation Project – a power station under construction in Freetown. The project represents the first utility-scale power generation facility in the country and will meet up to 24% of Sierra Leone’s power demand.
Featuring a mix of financing and political risk insurance, the capital will support the development and upgrading of the facility while promoting reliable access to electricity across the country. Of the total financing, the DFC is providing a $292 million loan for the upgrading of power infrastructure as well as $120 million in political risk insurance to crowd-in private investment. Additionally, the ECOWAS Bank for Investment and Development – a regional investment and development bank – is providing a $40 million loan to support the project.
“The government of Sierra Leone is committed to providing reliable, clean, affordable, and sustainable energy solutions to support our national development efforts. We are happy to do so via innovative public and private sector programs like this one that prioritize impact. We will provide all the requisite support for this partnership,” stated David Moinina Sengeh, Chief Minister of the Government of Sierra Leone.
The Western Area Power Generation Project comprises two combined cycle gas turbines, one steam turbine alongside transmission lines for two substations. Power generation company Milele Energy and power project developer TCQ Power are developing the project, with energy company Siemens Energy spearheading the operation and maintenance.
“The Western Area Power Generation Project is poised to revolutionize Sierra Leone’s energy landscape, bringing opportunity to communities across the nation. Its impact will be profound, fueling progress, prosperity, and a brighter future for all Sierra Leoneans,” added Bryan David Hunt, U.S. Ambassador to Sierra Leone.
