Tembo Power has a major ally in the development of its Dama and Siku hydroelectric projects in Burundi. The energy company, based in Pamplemousses, Mauritius, has announced an agreement with the International Finance Corporation (IFC), the private sector financing arm of the World Bank Group. The agreement covers the development and financing of two projects.
“We are delighted to be partnering with the IFC on these projects, which are designed to stimulate growth in Burundi and provide clean, reliable energy to the national grid at a reasonable cost”, says Jacques Barouhiel, Tembo Power’s Managing Director. Under the agreement, the IFC will provide financing of $1 million for development activities, “subject to compliance with IFC performance standards”. The Washington, D.C.-based financial institution will act as mandated lead arranger for the $60 million senior debt financing for both projects.
Read also- BURUNDI: Tembo Power seeks partners for two run-of-river power stations
With the support of the IFC, Tembo Power expects to reach financial close for its Dama and Siku hydroelectric projects in 2024. The 10 MW Dama run-of-river plant will be located in the province of Rumonge in south-west Burundi. The electricity generated by the plant will be transmitted via a 12 km high-voltage line.
The Siku hydroelectric project is being implemented in the province of Bururi in the south-west of the country, with an expected capacity of 12 MW. The electricity generated by this run-of-river power station will be evacuated via a 13 km high-voltage line. The feasibility studies (geotechnical and geophysical studies) for both projects have already been carried out by the engineering company Aurecon. The two power plants will be capable of injecting 115 GWh of electricity a year into Burundi’s national grid.
Jean Marie Takouleu