With $292 million loan to construct and operate 105MW… United States Boosts Electricity Supply in Freetown
The United States announced the first disbursement from the U.S. International Development Finance Corporation (DFC) for a $292 million loan to construct and operate a 105MW combined-cycle power plant in Freetown, Sierra Leone (the “Nant Project”).
The Nant Project, supported by the United States and the ECOWAS Bank for Investment and Development (EBID), is expected to nearly double the electricity generation capacity of Sierra Leone. It will be implemented by the CECA SL Generation Limited consortium, which includes private partners TCQ Power Ltd. and Anergi. This project will complement the separate $480 million power infrastructure project that the United States is supporting through the Millennium Challenge Corporation Compact.
The Nant Project will be the first large, utility-scale independent power project in Sierra Leone and will supply reliable electricity to address the country’s critical long-term power needs. The loans from the United States through DFC and EBID will enable the country to meet energy access goals and replace high-cost temporary solutions. The governments of the United States and Sierra Leone have partnered to attract private investment into the sector and set a goal of creating one gigawatt of energy capacity over the next decade.
“The scale and impact of the Nant Project make it a standout example of what DFC and partner institutions like EBID can accomplish when working together with our private sector partners to benefit the communities where we operate. This transaction is a major milestone for Sierra Leone’s energy security and economic development and represents the largest percentage increase in energy capacity in a single country of any DFC project,” said Scott Nathan, DFC CEO.
“This project aligns with our broader goals under the $480 million MCC Compact and Sierra Leone’s Just Energy Transition and Green Growth Plan. It will significantly reduce our dependence on imported fuels and mitigate the vulnerabilities associated with high-emission, unreliable, or weather-dependent energy sources like hydropower.” said Hon. Dr. Kandeh Kolleh Yumkella, Chairman of the Energy Governance Coordination Group.
U.S. investments in energy projects provide reliable and secure electricity to drive development, promote economic growth, and create jobs. By expanding electricity access, diversifying energy sources, and supporting emerging energy technologies, the Nant Project enhances energy security and fosters innovation, contributing to sustainable development and resilience for all Sierra Leonean citizens.
