Tembo Power
- Country
- Burundi
- Technology
- Multiple
- Business model
- IPP
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.
Project Overview
The 9.8MW Dama hydropower project is located in the Rumonge province and the 12.4MW Siguvyaye hydropower project is located in the Bururi province. At completion, the projects are set to deliver electricity to the national grid through a 25-year take-or-pay PPA with REGIDESO. The projects are will be financed through a mix of non-recourse debt arranged by IFC and equity.
Funding objective
USD-denominated development loan to finance pre-financial close late stage development activities of the projects, mostly related to legal, licensing fees and geotechnical workstreams.
Investment rationale
ElectriFI is supportive of the projects because of its strong financial additionality with the use of development capital to de-risk the project, catalyse further private long-term capital and allow the project to reach financial close, as well as because of the contribution to the Plan National de Développement 2018-2027 of the Government of Burundi and high impact by adding circa 22.2MW of generation capacity and circa 713,320 direct beneficiaries.