Joule Africa has signed a 25 year power purchase agreement (PPA) with the Government of Sierra Leone for the upcoming 143MW Bumbuna II hydro power project.
In a clear sign that the Government of Sierra Leone is taking steps to get the country back on its feet following the Ebola crisis, it has today signed a 25-year Power Purchase Agreement (PPA) with Joule Africa to provide much-needed, all-year round power to the country.
Under the conditions of the agreement, Joule Africa and its local partner Energy Services Company (ESCO), through joint ownership of the newly formed Seli Hydropower, will build an extension to the existing 50 MW hydro station, Bumbuna I, situated in the north east of the country, adding a further 143 MW of power capacity. Construction on the extension, BumbunaII, is anticipated to start by mid-2018 with operations forecast to start four years later. Seli Hydropower, will be responsible for building, owning and operating Bumbuna II.
Commenting on this announcement, Patrick Beckley, Executive Chairman of Seli Hydropower Limited and Chairman of ESCO, Joule Africa’s local partner, said: ‘We are pleased to have reached this important milestone and thank the Government of Sierra Leone for their continued support. The development of Bumbuna II has always been a key part of the country’s energy strategy and we look forward to being able to deliver a value-for-money solution for Sierra Leone’s electricity distribution and supply authority, EDSA, and affordable, all-year round power for the consumers of Sierra Leone.”
Andrew Cavaghan, Founder and Executive Chairman of Joule Africa and Director of Seli Hydropower, added: “I am delighted that we have reached this significant milestone in the development of this most important of national and regional energy projects. Joule Africa has been operating in Sierra Leone since 2010 and has built up some very strong relationships in-country during that time. We have also in place an in-house team very capable of delivering and operating this hydro project, safely and reliably.”
Paul Kunert, Joule Africa’s Chief Executive and Director of Seli Hydropower, added: “We are in the process of appointing an experienced contractor and finalising the funding, both of which are well underway. “As our most advanced project to date, we are committed to ensuring that all aspects of this project are carried out in line with best practice.”
Ambassador Henry Macauley, Minister of Energy, commented: “This is a critical project for Sierra Leone and represents an important step in helping to resolve our country’s power deficit. When operational, Bumbuna II will make the most of harnessing and managing Sierra Leone’s heavy, seasonal rainfall and will provide clean, reliable energy for generations to come.”
Minister of Finance and Economic Development, Momodu Kargbo, commented: “The addition of Bumbuna II to the existing Bumbuna I facility will act as an important catalyst in helping businesses and industries to grow and households to enjoy a better standard of living.”
His Excellency Dr. Ernest Bai Koroma, President of the Republic of Sierra Leone, concluded: “The Government of Sierra Leone is prioritising power generation and seeks to increase accessibility by the population to electricity as part of its commitment to the UN Sustainable Development Goals. As part of this, Sierra Leone has set itself a target of increasing the proportion of households with access to electricity, via the national grid, from 13.5% at the end of 2015 to 30% by the end 2030. The successful construction and operation of both Phase I and II of the Bumbuna Hydroelectric Power Project form a critical part of the Government of Sierra Leone’s long-term energy strategy.