ElectriFI Invests in the Development of the Dama and Siku Hydropower Plants in Burundi
Bujumbura, Burundi & Brussels, Belgium – 11 July 2024 – Tembo Power, a renewable energy company dedicated to providing clean energy solutions in Sub-Saharan Africa, and ElectriFI, managed by EDFI Management Company, today announced a financing agreement to support the development and financing the 9.8MW Dama and 12.4MW Siku run-of-river hydropower plants in Burundi. ElectriFI is a European Union impact facility managed by EDFI Management Company.
ElectriFI will provide a $300,000 loan to Tembo Power to finalize late-stage development activities, with a particular focus on geotechnical and environmental and social aspects. These funds will among other things help ensuring the projects adhere to the IFC sustainability performance standards. The projects will be financed through a mix of non-recourse senior debt arranged by IFC, and equity to be supplied by Tembo Power, and potentially also from ElectriFI.
“We are thrilled to partner with the ElectriFI and EDFI Management Company on the Dama and Siku hydropower projects on top of the IFC (World Bank Group)’s support secured last year,” said Raphael Khalifa, Managing Director of Tembo Power.
Upon completion, the run-of-river hydropower projects are anticipated to generate a combined 105 GWh of clean electricity annually, providing much-needed electricity to remote areas of landlocked Burundi.
Tembo Power anticipates reaching financial close for the projects in early 2025.
Project Highlights:
- Location: Dama (Rumonge province) & Sikuvyaye (Bururi province), Burundi
- Estimated Total Capacity:2 MW (Dama: 9.8 MW, Sikuvyaye: 12.4 MW)
- Estimated Annual Generation:105 GWh
- Transmission Lines:Dama (15 km), Sikuvyaye (12 km)
- Targeted Financial Close:Early 2025
This joint undertaking between Tembo Power and ElectriFI represents a commitment to Burundi’s clean energy future. The Dama and Siku hydropower plants will provide much-needed electricity to remote areas, promote sustainable development, and contribute to a brighter future for the Burundian people.
About EDFI Management Company
EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. For more information, visit www.edfimc.eu.
About ElectriFI
The Electrification Financing Initiative – ElectriFI, managed by EDFI Management Company, is an impact-first investment facility, funded by the European Union, USAID’s Power Africa programme, the Government of Sweden and the Government of Italy. ElectriFI is investing in early-stage private companies and projects that increase or improve access to and supply of sustainable energy in developing countries. For more information, visit www.electrifi.eu.
About Tembo Power
Tembo Power is a Mauritius based independent renewable power producer owned by Tembo Holdings, and funded primarily by private investors. the Company develops medium-sized hydroelectric projects (<50MW), as well as photovoltaic projects (as part of hydro-solar hybrid systems) in Sub-Saharan Africa, with the aim to provide reliable and affordable electricity to rural Africa. For more information, visit www.tem.bo
Media inquiries
For EDFI Management Company: Natasa Lakovic, n.lakovic@edfimc.eu
For Tembo Power: Raphael Khalifa, rk@tem.bo