Project detail - CECA SL GENERATION LIMITED

Who is our client

The client is CEC Africa Sierra Leone Limited, a SPV set up to develop, construct, operate and maintain a 57MW HFO fired power plant located in the West of Sierra Leone’s capital Freetown. The company is owned 60% by CDC Group Plc. and 40% by TCQ Power Limited. The facility includes further infrastructure such as storage tanks, water treatment facilities and transmission infrastructure.

Funding objective

FMO provides a USD 15 mln senior loan. Further debt financing will be provided by IFC, AfDB, CDC and EAIF. The loan facility will be used for the construction of the power plant and the relevant infrastructure in line with the construction progress.

Why we fund this project

FMO finances this power plant in Sierra Leone because of its relevance for the sector and the country. Post-Ebola and with an installed capacity of only 83 MW, Sierra Leone is in great need of electricity and private investment. Foreign direct investment will also give a positive sign to the country and its economy following the slow-down caused by the Ebola epidemic. Further FMO will provide long-term financing which is not available in the market. The project is not a renewable energy project but located in a Low Income Country in Africa that needs base load electricity supply, which makes it fit into FMO’s strategic approach.