Development Studies underway for hydropower projects in Burundi

July 22nd, 2020
Africa focused Independent Power Producer (IPP), Tembo Power, has signed an agreement with South Africa based water infrastructure developer, WK Construction, to conduct detailed development phase studies for the proposed 7.5MW Dama and 12MW Siguvyaye hydropower projects in Burundi.

Under the terms of the agreement, WK Construction will be granted the status of preferred Engineering Procurement and Construction (EPC) contractor, while its investment arm, WK Power, will have a minority equity stake in the projects.

The Dama and Siguvyaye projects are currently in the permitting phase. Aurecon, a South African engineering firm and a strategic technical partner of Tembo Power, has conducted the feasibility studies, including geotechnical and geophysical surveys. Trinity LLP is advising Tembo Power on the legal aspects to finance the projects according to international project financing standards.

According to a media statement released by the parties, the projects are on track to reach financial close in the third quarter of 2021 and the combined investment will be about US$50 million.

WK Construction is already partnering with Tembo power on the 14.7 MW Kaptis hydropower project near the town of Kakamega in western Kenya, where WK Power, the investment arm of WK Construction, has taken an equity position in the US$44 million project.

“We are delighted to pursue our partnership with WK Construction into Burundi, as this will allow us to leverage the experience gained together in Kenya and fast track the detailed studies development phase prior to financial closing. WK Construction is also a leading pipeline contractor, which makes it an ideal partner for the Burundian projects, which consist in high heads and low rated flow,” said Raphael Khalifa, founder of Tembo Power.

“At WK we are excited to be extending our partnership with Tembo and expanding the footprint of hydropower projects that we are involved within East Africa. These projects add to our existing projects in Uganda and Kenya. WK firmly believes the project partners complement each other’s skillsets and make a formidable team to develop these projects,” said Karl Kusel, CEO, WK Construction.