Joule Africa secures US$500k grant from PIDG’s Technical Assistance Facility for Hydropower Project

Following completion of the first phase of feasibility studies for Kpep, its 285MW hydropower project in Cameroon, Joule Africa is pleased to have received a US$500,000 grant, to help finance the final stage of feasibility studies, including part of the Environmental & Social Impact Assessment (ESIA).

The grant has been provided by the Private Infrastructure Development Group’s (PIDG) Technical Assistance Facility (TAF) which has previously provided support for Joule Africa’s 143MW hydropower project in Sierra Leone.

Mark Green, Co-Founder of Joule Africa, commented:

“This funding comes at an exciting time for the Kpep project which has recently been identified as a priority power project for the country by the Government of Cameroon. As well as starting the ESIA studies, we are now embarking on negotiations with the Government to agree Heads of Terms for a Power Purchase Agreement.”

The Kpep hydropower project is located in the North Western region of Cameroon in the Katsina Ala river basin.  The Project is a storage reservoir scheme that has been optimized for firm energy/dry season production and will link into the Southern Interconnected Grid (one of three independent transport and distribution networks operated by Eneo Cameroun S.A.), providing electricity access on a national scale.

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Joule Africa's Stakeholder Update October 2019

Please click here to review this edition of our quarterly stakeholder update.

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DBSA Commits US$4.9m of Development Funding to Bumbuna II

As Joule Africa enters the final stages in developing the Bumbuna II 143MW hydropower project in Sierra Leone, the Development Bank of Southern Africa (DBSA), one of Africa’s leading development finance institutions, has committed US$4.9 million to finance remaining project development activities.

Mohale Rakgate, DBSA’s Group Executive for Project Preparation, commented:

“Bumbuna II is a critical energy infrastructure project for Sierra Leone which will help to reduce the country’s dependence on fossils fuels and emergency power by providing affordable baseload power for Sierra Leone.

“We are impressed by the professional manner in which Joule Africa and its local company, Seli Hydropower, are project managing the numerous workstreams involved in developing this hydropower project which will provide much needed, guaranteed, all year-round electricity to the citizens of Sierra Leone.

“By providing development capital to the Bumbuna II project at this important time, as well as being a prospective senior lender to the project, we are helping to facilitate the bankability and ultimate success of this project. The development of the energy sector is critical to the socio-economic growth of Sierra Leone and is a key element for future planning in a country at the crossroads of major industrial investments.”

Andrew Cavaghan, Executive Chairman of Joule Africa Limited, added:

“We are pleased to have the support and endorsement of DBSA as we progress the project towards financial close.  DBSA’s funding and ongoing support comes at a critical time when our team is focused on completing the remaining activities so that the construction of this landmark project can get underway.”

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ElectriFI commits US$3.5m of development funding for Bumbuna II hydroelectric power project

As the 143MW Bumbuna II Hydroelectric power project (Bumbuna II) in Sierra Leone enters the final stages of development, ElectriFI, the Electrification Financing Initiative, has committed US$3.5m of development capital to finance 50% of the external development expenses needed to reach financial close of the project.

Joule Africa, the project sponsor, signed a 25-year PPA with the Government of Sierra Leone in August 2017 and selected a preferred EPC contractor to construct the project in February 2018.  Mandated Lead Arrangers for the debt finance will be selected by Joule Africa shortly and construction is scheduled to begin by the end of 2019.

Andrew Cavaghan, Founder and Executive Chairman of Joule Africa Limited, said:

“We are delighted to have secured the support of ElectriFI at this critical stage of development as we ramp up to finalise the financing and start construction.  Our team is now focused on completing the remaining activities so that the construction of this important project can begin.

“When complete, Bumbuna II will provide much-needed, affordable, reliable and clean power for the people of Sierra Leone where access to electricity is currently under 20%.”

Dominiek Deconinck, ElectriFI Fund Manager, commented:

“Bumbuna II is crucial for the Government of Sierra Leone to stimulate its energy sector and support its economic growth strategy. Bumbuna II will double the national generation capacity; indirectly encourage investments in transmission and distribution network; and allow the Government to show it is capable of managing large international infrastructure investments such as this.

“Joule Africa has demonstrated its capabilities as a professional, dedicated project developer, taking its role seriously, in particular by urging the adequacy of capacity in the Government and by pursuing net gains for the communities and the environment affected by the Project.”

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