IFC Supports Burundi Hydropower Projects
The Dama and Siku plants have a combined capacity of 22MW.
The developer of the Dama and Siku hydropower projects in southern Burundi, Tembo Power has signed a collaboration agreement with the International Finance Corporation (IFC) that could see it act as the mandated lead arranger for the US$60 million debt financing for the two run-of-river plants.
According to Tembo Power, the IFC will also provide up to US$1 million to support "last mile activities" ahead of financial close, which is expected in 2024.
The 9.6MW Dama facility will be built in Rumonge province, while the 12.4MW Siku plant will be located in Bururi province. They are expected to generate a combined 105 gigawatt hours (GWh) a year of power.
“We are thrilled to partner with IFC on [these] projects, aimed at boosting Burundi’s growth and supplying clean and reliable power to the national grid at a competitive price,” said Jacques Barouhiel, managing director, Tembo Power.
Tembo Power is a subsidiary of Mauritius-based Tembo Holding.
France's Finergreen is acting as the company's financial advisor and London-based Trinity International as project finance legal counsel.
Photo: Hydropower plant (© Matatu | Dreamstime.com)
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