The Western Area Power Generation Project (WAPGP) is owned 50.1% by Milele Energy and 49.9% by TCQ Power.

Both sponsors will provide the equity, and the US International Development Finance Corporation (DFC) has approved $217 million in debt financing. During construction, at least 300 people will be employed, as ongoing training is offered and a clinic is built to serve the site and the local community.

” Construction of an 83MW thermal power plant is planned for Q3 2023 in Freetown to generate and sell electricity to the Electricity Distribution and Supply Authority under a 20-year power purchase agreement. “

WAPGP consists of two combined cycle gas turbines, one steam turbine, and new transmission lines for two substations to evacuate the power (see 3D model above). Added to the project is a small desalination plant based on seawater intake to accommodate WAPGP’s water use.

“DFC’s investment will substantially increase access to energy for people all across Sierra Leone, providing power generation to meet approximately 24% of projected electricity demand in a country where only 15% of the population has reliable access to power,” said David Marchick, DFC’s Chief Operating Officer.

The plant’s design will initially operate on LPG as a bridge fuel since the preferred LNG would require significantly higher infrastructure costs. However, given the limited LPG infrastructure in Sierra Leone, the project plans to build 9,100m³ of LPG storage.

“In parallel, we are working with IFC to be the anchor off-taker for the proposed LNG terminal being co-developed,” explained TCQ Power’s CEO Karim Nasser. The project will supply the local market through the developed LPG infrastructure when LNG is brought online.

While the project’s large debt package is helping the country to bring in much-needed reforms to the sector, this financing informs future lenders about perceived Sierra Leonean risk. Notably, this is the first instance of DFC financing a project in a country without a Sovereign Debt Rating. ESI