In July 2021, the DFC committed to providing $217 million in debt financing for a new 83 MW power plant in Freetown.
The United States development finance institution (DFC) announced on May 8 an additional financing of $412 million and political risk insurance to support Sierra Leone’s plans to address electricity access deficits and expand its electrical grid through renewable energy solutions.
Initially, the DFC approved a new loan of up to $292 million for the Western Area Power Generation Project, based in Freetown, to contribute to the development and modernization of the power plant infrastructure.
Additionally, the institution will provide up to $120 million in political risk insurance to attract private investments. The ECOWAS Bank for Investment and Development (EBID) is bolstering the financial package with a $40 million loan.
“Sierra Leone’s vision for a sustainable energy future is becoming a reality. DFC is proud to support the country’s first major independent energy project and lay the groundwork for reliable and affordable electricity,” said DFC’s Acting Deputy CEO, Nisha Biswal.
Sierra Leone had an electricity access rate of 27% in 2021, according to the World Bank. Since the beginning of the year, the country has been facing a severe electricity crisis, leading to the resignation of the Energy Minister last April.