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.