Freetown, Sierra Leone: Endeavor Energy, a privately owned independent power development and generation company, today announced that it has entered into a joint development agreement (JDA) with international power developer Joule Africa.
As part of the agreement the two companies will work together to develop and construct the US$700 million Bumbuna Phase II Power Project, a hydroelectric power (HEP) project in Sierra Leone projected to add an additional 202 megawatts to the existing 50 megawatts at Bumbuna Phase I.
Bumbuna Phase II is the first project for Endeavor Energy, which was formed in June following an initial commitment from leading energy-focused global private equity firm Denham Capital’s $3 billion Fund VI. As part of the JDA, Endeavor Energy has agreed to fund the remaining development costs for the project and expects to invest up to 75 percent of the project’s equity at financial close (estimated $150 million USD).
“We are pleased to begin our first project after such a short period of time and to team up with our great partners Joule Africa and the Government of Sierra Leone to launch Bumbuna Phase II,” said Sean Long, CEO of Endeavor Energy. “We are also delighted by the work Joule Africa has done thus far on the project with the Government of Sierra Leone. We welcome the opportunity to help complete it in order to provide much needed low-cost power generation to the citizens of Sierra Leone.”
In addition to Bumbuna Phase II, Endeavor Energy is in discussions to acquire and develop a number of other thermal and hydro power generation opportunities throughout Africa.
“We are likely to commit to complete the development of our second project, an estimated $500 million power generation project in Sub-Saharan Africa, before the end of this year,” added Long. “We continue to see a robust market and a need for independent power generation companies like Endeavor Energy to invest both development capital and equity capital in power generation projects in Africa.”