US DFC Launches Landmark $412 Million Gas Power Plant Project in Sierra Leone
The U.S. International Development Finance Corporation’s (DFC) Deputy CEO, Nisha Biswal, attended a groundbreaking ceremony today for the Nant Energy project in Sierra Leone. This significant development aims to nearly double the country’s energy capacity and enhance its attractiveness to external investors.
Formerly known as the Western Area Power Generation Project, this facility represents Sierra Leone’s first gas-to-power plant, addressing a crucial need for reliable energy infrastructure. The construction of the plant has commenced and is slated for completion within 36 months. The project is co-sponsored by Milele Energy, an independent power-generation company based in Nairobi, and energy project developer TCQ Power.
This development marks a historic moment for Sierra Leone and a groundbreaking achievement for the U.S. Government, as it signifies the largest single-country increase in energy capacity supported by a DFC project. Earlier this year, DFC’s Board of Directors approved up to $412 million in financing and political risk insurance for the project.
“Access to power is essential for improving lives and livelihoods now – and driving economic growth for years to come,” said DCEO Biswal during the ceremony. “Today, we break ground on the Nant Energy power project, which will significantly contribute to Sierra Leone’s energy security, marking a major milestone in this project’s development.
U.S. Ambassador to Sierra Leone, Bryan David Hunt, emphasized the transformative potential of the project. “We are proud to support a private sector initiative that is poised to revolutionize Sierra Leone’s energy landscape,” Hunt remarked.
“The Nant Energy project brings opportunities to communities across the nation. The effects of this project will be profound, and we are excited to witness a new era of prosperity for the country and the region.”
TCQ Power CEO, Karim Nasser, expressed pride in the collaborative effort that led to this momentous occasion. “I am proud of the hard work that we all put in to get here. The project will be the foundation of prosperity for Sierra Leone for years to come,” Nasser said. “With the completion of its financing, Sierra Leone can now emphatically say, we are open for business.”
DFC’s
investment in this project underscores its commitment to fostering reliable
energy solutions that drive development in Sierra Leone and globally, promoting
economic growth and job creation. Despite this progress, there remains a
significant global challenge: approximately 770 million people still lack
access to electricity, and millions more experience frequent power outages.
Energy access is critical to achieving broader development goals across various sectors. Reliable energy strengthens infrastructure, supports the growth of small businesses, combats food insecurity, and provides essential healthcare services.
The Nant Energy project is set to become a cornerstone of Sierra Leone’s infrastructure, providing a stable energy source that will support the country’s economic ambitions and improve the quality of life for its citizens. The collaboration between DFC, Milele Energy, and TCQ Power showcases the power of public-private partnerships in addressing significant developmental challenges.
As construction progresses, the project is expected to serve as a model for similar initiatives across Africa and beyond. It highlights the potential for impactful investments that not only address immediate infrastructure needs but also lay the groundwork for sustained economic growth and development.
In
conclusion, the launch of the Nant Energy gas power plant project is a
transformative step towards energy security and economic prosperity for Sierra
Leone. It reflects a strong commitment from the U.S. and its partners to
support sustainable development and drive positive change in the region.