Project Overview
The Bumbuna I hydroelectric power plant is located on the Seli River in Tonkolili District, Northern Province. Owned and operated by the public sector Electrical Generation and Transmission Company (EGTC), the existing 50 MW plant (2×25 MW Francis turbines) is the lowest-cost generation in Sierra Leone's power system. The expansion by a further 60 MW is the lowest-cost option for increasing energy provision according to the Millennium Challenge Corporation feasibility study (2023). EGTC cannot finance the expansion, so the Government seeks a transaction combining privatization of the existing 50 MW plant with an agreement for the new owner to undertake the 60 MW expansion. The transaction will be underpinned by a Power Purchase Agreement with EDSA, supported by appropriate guarantees, with pricing starting based on existing output and increasing as expanded capacity comes online.
Quick Summary
Investment opportunity to acquire and operate the existing 50 MW Bumbuna I hydro plant and finance a 60 MW expansion. The lowest-cost generation option in Sierra Leone's power system. Total capacity will reach 110 MW with expected output of 371 GWh annually.
Target Market
National (Sierra Leone grid, transmission to Freetown via 200km 161kV line)
Sub-Sector
Hydropower Generation
Market Analysis
The existing 50 MW Bumbuna I plant is the lowest-cost generation in Sierra Leone's power system. The 60 MW expansion is the lowest-cost option for increasing energy provision in the country, according to the Millennium Challenge Corporation feasibility study (2023). Performance data (2018–2022) shows average output of 222.5 GWh with 51% capacity factor and minimum load of 6 MW in May 2022. Expansion output expected to reach 371 GWh, providing reliable, clean, and cost-effective baseload power to Sierra Leone's grid.
Project Details
Project Information
Location Details
Implementing Agency
Ministry of Energy (Coordinating), Electrical Generation and Transmission Company (EGTC - Owner/Operator)
Ideal Investor Profile
Investors or consortia with experience in hydropower plant operations, financing, and expansion. Experience in public-private partnerships and power purchase agreement negotiations is essential.
Technical Requirements
Proven expertise in hydropower plant management, turbine installation, and powerhouse construction. Capability to manage specialist blasting for powerhouse extension adjacent to existing facility.
Related Sectors
Financial Information
Revenue Projections
Revenue will be generated through a Power Purchase Agreement (PPA) with the Electricity Distribution and Supply Authority (EDSA). Existing plant performance: average output of 222.5 GWh annually with 51% capacity factor. Expanded station expected output: 371 GWh annually (an increase of ~67%). Starting PPA price based on existing output, increasing as expanded capacity comes online.
Investment Incentives & Support
Financial Incentives
Transaction backed by Power Purchase Agreement with EDSA
Appropriate government guarantees to be provided
Starting PPA price based on existing output, increasing as expanded capacity comes online
Regulatory Framework
Governed by Sierra Leone's energy sector regulations. EGTC is the public sector owner/operator. Ministry of Energy coordinates. Transaction will involve privatization and expansion agreements.
Approval Process
Investor engagement with Government of Sierra Leone. Transaction structure: privatization of existing 50 MW plant combined with agreement to undertake 60 MW expansion. PPA negotiation with EDSA. Contract signature followed by 33-month construction period.
Required Licenses & Permits
Energy generation license. Environmental permits (low to no environmental impacts anticipated with appropriate mitigation; no detrimental effect on local chimpanzee population). Construction permits.
Location Information
Project Location
Country: Sierra Leone
Specific Location: Bumbuna, Tonkolili District, Northern Province, Sierra Leone
Location Advantages
- Strategic location in West Africa
- Access to Sierra Leone market
- ECOWAS regional market access
Land Availability
Existing facility operational on Seli River. Assets include Bumbuna dam (88m high, 400m long, 70.8m head), surface powerhouse, 200km 161kV transmission line to Freetown. Expansion will occur on existing site; no resettlement costs anticipated.
Risk Assessment & FAQ
Frequently Asked Questions
Investor engagement with Government of Sierra Leone. Transaction structure: privatization of existing 50 MW plant combined with agreement to undertake 60 MW expansion. PPA negotiation with EDSA. Contract signature followed by 33-month construction period.
Transaction backed by Power Purchase Agreement with EDSA
Appropriate government guarantees to be provided
Starting PPA price based on existing output, increasing as expanded capacity comes online
