The Board of Directors of the United States International Development Finance Corporation (DFC) has $292 million and expanded insurance coverage for the construction of a new power plant in Sierra Leone.
The decision was made to escalate support for the CECA SL Generation Limited’s initiative to develop a 105 megawatt combined cycle thermal power plant along with essential associated infrastructure.
According to the board’s latest resolution, the DFC will now provide up to $292 million in principal financing, an increase from the initially approved $217 million. This adjustment reflects changes and expanded scope in the project’s development plans.
“The increased funding commitment underscores our confidence in the project’s potential to strengthen Sierra Leone’s energy infrastructure and boost local economic growth,” DFC noted in statement issued yesterday.
In addition to the financing, the board also agreed to enhance the project’s political risk insurance coverage. The coverage, initially capped at $50 million, has been raised to up to $120 million. This move is designed to secure the investment against potential political risks, ensuring the project’s stability and longevity.
“The DFC’s enhanced support for the Sierra Leone power project is pivotal at this juncture,” the statement added. “It demonstrates our ongoing commitment to fostering sustainable development and economic growth in emerging markets.”
The project, anticipated to significantly improve power supply reliability in Sierra Leone, continues to receive strategic support at various governmental levels, aiming to contribute to the broader goals of energy access and economic stability in the region.
