Bumbuna-II (Joule Africa)

Pending contracting: This investment proposal has received final approval and now is entering into the contracting phase. This disclosure will remain on line during 30 days, after which it will be removed automatically.

Investment Name: Bumbuna II

Region: Western Africa

Country: Sierra Leone

Sector: Hydropower

Sponsor’s website: http://www.jouleafrica.com/

Total ElectriFI Financing: USD 1.5m

Environmental and Social Category: A

(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk

Project overview:Joule Africa is in late stage development of the 143 MW Bumbuna II hydro project in Sierra Leone. The project comprises a dam resulting in a new reservoir at the Yiben area and the extension of  the existing Bumbuna I hydropower site, 32 km downstream. Once completed, BBII is estimated to generate 1,062 GWh per annum and will provide a minimum guaranteed 80MW power throughout the year. It will connect to the national grid and sell its output under a 25 year PPA with national utility EDSA.

Funding objective and impact: EDFI ElectriFI will provide a USD 1.5m convertible loan to Joule Africa in order to finance the external final hurdle development expenses aimed at reaching financial close of the project.

 Why EDFI ElectriFI wants to fund this project:The Bumbuna II project is crucial for the government to stimulate its energy sector and support its economic growth strategy. Bumbuna will double the national generation capacity; indirectly enable investments in transmission and distribution network; and allow the national government  to demonstrate its ability to manage large international infrastructure investments.

Environmental and social rationale:

The Project is an environmental and social risk category A.

The main environmental and social risks of this Project are related to (i) the impact on the Biodiversity (Critical and Natural habitat) (ii) impact on local communities – circa 3500 persons to be physically and economically impacted and (iii) general EHS management during Construction Phase.

All IFC Performance Standards are triggered with the exception of IFC PS7 on Indigenous People. The Environmental and Social Impact Assessment did not identify any people or groups of people qualifying under the definition of Indigenous People. The impacts will be mitigated through dedicated mitigation plans and activities.