The power producer Tembo Power has extended its partnership with the South African company WK Construction for its Dama and Siguvyaye hydroelectric projects in Burundi. WK Construction will carry out detailed studies for the construction of these plants, with the aim of feeding 19.5 MW into Burundi's national electricity grid.
As the Dama and Siguvyaye hydropower projects in Burundi approach financial close, the developer Tembo Power announces the extension of its partnership with WK Construction, now responsible for carrying out detailed studies for two hydroelectric projects. Under the new agreement, the company has “preferred contractor status” to provide engineering, procurement and construction (EPC) services for the future facilities.
With an expected capacity of 7.5 MW, the Dama hydropower project will result in the construction of a run-of-river power plant in the Rumonge province in southwestern Burundi. The electricity generated by this plant will be evacuated via a 12 km high-voltage line.
The financial closing is scheduled for 2021
The Siguvyaye hydroelectric project is being developed in the wake of the Dama project. It is located in the Bururi province in the south-west of Burundi with an expected capacity of 12 MW. The run-of-river power plant will generate electricity via a 13 km high-voltage line. Feasibility studies (geotechnical and geophysical studies) for both projects have already been carried out by Aurecon, a South African engineering company.
The Dama and Siguvyaye hydroelectric projects will require an overall investment of $50 million. As part of the expanded partnership between the project developer and WK Construction, its investment subsidiary WK Power, will retain a minority stake in both projects. According to Tembo Power, the extension of the partnership with WK Construction confirms the technical and economic viability of the projects and demonstrates the success of the partnership for the construction of the Kaptis hydropower plant (15 MW) in Kenya. Tembo Power was primarily responsible for the overall development, while WK Construction provided technical expertise to reach financial close.
“Tembo Power’s objective is to develop, finance and operate power generation assets in sub-Saharan Africa. The company is currently in the process of raising equity for a portfolio of 10 projects totalling 184 MW in Kenya, Burundi and the Democratic Republic of Congo (DRC),” explains the Mauritius-based company. Financial close for its two hydropower projects in Burundi is scheduled for 2021.
Jean Marie Takouleu