COPPERBELT ENERGY CORPORATION (CEC) PLC GETS $200M SIERRA LEONE ENERGY DEAL SIERRA LEONES parliament has approved a $200m investment deal with a subsidiary of the Zambia-based Copperbelt Energy Corporation. Sierra Leones parliament has approved a $200m investment deal with a subsidiary of the Zambia-based Copperbelt Energy Corporation (CEC) Plc, CEC Africa Investments Limited (CECA). The Power Purchasing Agreement between the government and the CEC Africa Sierra Leone Ltd paves the way for the construction of a new plant. The agreement was unanimously approved by lawmakers on Friday. The project, which was first unveiled at the Africa Energy Forum in Barcelona, Spain, last year, will be implemented in phases. It will be one of the largest private sector investments in Sierra Leone in general and in its energy sector in particular. Sierra Leone produces one of the smallest quantities of electricity in the world. But the effect of low production is worsened by a severely decrepit transmission and distribution system, in place since pre-independence era. An upsurge in foreign direct investment following the end of a civil war, especially in the mining sector, has left it further in dire need of reliable power supply. The hydro-power is largely consumed by huge investment firms which rely on independently sourced energy to supplement their vast needs. The CECA deal stemmed from an initial agreement between its parent company CEC and the Lebanese-owned TCQ Power Limited based in Beirut, which jointly acquired majority equity in a Sierra Leonean energy firm, Blue Flare Power SL (BVI) Limited (BFP). The resulting CEC Africa (SL) will undertake the development of the power infrastructure in the form of 128MW of thermal generation capacity. Employment The deal also involves investment in related power infrastructure and, in addition, provision of training for the local staff. The project is expected to be complete in four years from its inception, Attorney General and minister of Justice Franklin Bai Kargbo, told parliament prior to the stamping of approval on the Bill. He said it was in line with the governments development agenda, after many studies had warned that the government the risk of a critical energy shortage in the West African country. Some 200 jobs will be created, the minister added. He also said Freetown was in urgent need of a 100MW and that the hope was that CECA, whose plant would be erected in the east end of the city, would fill the gap. The CECA, which is also developing similar projects in Namibia and Nigeria, will act as an independent power producer (IPP) and will sell the power it produces to the National Power Authority. The company has promised to supply for residential, commercial, government as well as mining consumption. Its involvement in the Sierra Leone market brings to two the number of IPPs, the first being the Bumbuna Hydro Power Plant which was under expansion as part of an ambitious $700 million project and was set for completion by 2017. Source: africareview/Business---Finance/Zambian-firm-gets-Sierra-Leone-energy-deal/-/979184/2336044/-/hjd70p/-/index.html
Posted on: Fri, 06 Jun 2014 14:17:23 +0000
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