Endeavor Energy Achieves Financial Close on $121 Million Tè Power Plant in Guinea
Project will improve power access for over 1,000,000 people and create up to 150 jobs
Conakry, Guinea – 27 March 2018 – Tè Power Company S.A.S.U. (TPC) today announced that it has reached financial close and begun construction of the $121 million Tè Power Plant (the Tè Project), a 50-megawatt greenfield thermal power plant in Conakry, Guinea. The Tè Project will be the first internationally development finance institution project-financed independent power project in Guinea and meets the most stringent local and international (World Bank/IFC) environmental requirements.
The Tè Project is sponsored by Endeavor Energy (Endeavor), as the lead developer and majority owner. Endeavor is a leading Africa-focused independent power company backed by global private equity firm Denham Capital. Endeavor’s minority partner in the Tè Project is Energie, Environnement et Mines S.A. (E2M), a Mauritanian mining and power company.
“I would like to extend a warm thanks on behalf of Tè Power Company to the Government of Guinea and to all of our project partners for their continuous support and dedication in bringing this project to fruition,” said Amadou Ba, President of Tè Power Company S.A.S.U. “The Tè Project is fully aligned with Guinea’s national economic and social development goals and represents the first step in Endeavor Energy’s commitment to a growing partnership with the Government of Guinea and to delivering additional power solutions in the years ahead for the people of Guinea.”
The Tè Project is specifically designed to help alleviate the power deficit in Guinea and provide reliable power as needed to meet the country’s future power demand in conjunction with Guinea’s ambitious renewable energy agenda and seasonal hydroelectric power generation.
“Guinea has made great strides over recent years to strengthen its power sector whilst at the same time creating an environment for international investing,” stated Sean Long, Chief Executive Officer of Endeavor. “We are very pleased to be working with Guinea’s government, as well as E2M, to realise this project. I am also proud of the Endeavor team for successfully working with our committed partners to achieve financial close on the required $89 million of debt financing for the Tè Project while at the same time continuing to execute on other important power projects across the continent.”
The plant’s construction is expected to take 15 months, coming online in mid-2019, and create up to 150 jobs (majority Guineans). Further, up to 40 people will be employed during operations and once constructed, the plant will improve electricity access for over 1,000,000 Guineans.
Juergen Heeg, Director at Denham Capital, highlighted: “We’re pleased to have partnered with Guinea on this investment and proud that the Tè project has moved forward to the construction phase with our partners. The Tè Project will have a significant developmental impact in Guinea, providing low cost, reliable power, local jobs and indirect economic and social benefits, while also supporting the country’s energy transition.”
The $121 million investment required for the Tè Project comprises $32 million in equity from Endeavor and $89 million in debt financing from the Overseas Private Investment Corporation (OPIC) and CDC Group PLC (CDC). In addition, OPIC provided up to $30 million of political risk insurance.
“The Tè Power thermal plant will increase power supply by as much as ten percent and help Guinea meet its growing energy demand, which is projected to triple over the next ten years,” said Ray Washburne, OPIC President and Chief Executive Officer. “This project is a tremendous development opportunity and supports our broader effort to bring greater connectivity to Africa. It will have a huge impact in providing much needed power to help sustain the country’s development and economic growth.”
“We are proud to be financing this ground-breaking project, CDC’s first individual investment in Guinea,” added Iain Macaulay, CDC’s Head of Project Finance. “It will provide reliable power, local jobs and support broader economic development. Having a privately funded power project delivering international environmental and social standards sends a strong signal that Guinea is open to the international investing community. CDC played a valuable role in the project by providing the debt finance that commercial banks were unwilling to offer.”
The Tè Project is another achievement for the U.S. Power Africa program and its partners OPIC, Endeavor, and Denham Capital. Andrew M. Herscowitz, Coordinator for Power Africa, the U.S. government-led initiative to double access to electricity by 2030, said: “Power Africa is proud to have provided assistance to our partner Endeavor Energy and Denham Capital through the U.S. Agency of International Development and the Departments of Commerce and State, and today we congratulate them and the people of Guinea for reaching financial close on the Tè Project.”
Endeavor’s international legal adviser was Allen & Overy, while S.D. Avocats and Sylla & Partners served as Guinean legal advisors. DLA Piper acted as international legal adviser to the lenders, and Nimba Conseil served as Guinean legal advisor. Sargent & Lundy served as lenders technical advisor and CDF Ingénierie and WSP | Parsons Brinckerhoff acted as owners’ engineer. Environmental Resources Management (ERM) acted as the owners’ environmental and social consultant, while Alliant Emerging Markets served as the insurance broker and consultant.
For more information about the Tè Power Project, please visit www.tepowercompany.com.
About Endeavor Energy
Endeavor Energy is a Denham Capital-backed leading independent power producer (IPP) company focused on Africa with its headquarters in Houston, Texas, USA and offices in Abidjan, Cote d’Ivoire, Accra, Ghana, Conakry, Guinea and Dubai, United Arab Emirates. Endeavor Energy develops, acquires, finances, owns and operates thermal, hydroelectric, biomass, waste-to-energy and “hybrid, first-of their-kind” power generation plants in Africa.
Endeavor Energy is led by a seasoned management team with over 200 years of combined IPP experience around the world, and a proven record of identifying and executing on project development and acquisition opportunities in Africa and elsewhere. With the financial and strategic backing of energy-focused global private equity investor Denham Capital, the company possesses significant financial and operational capability to generate and participate in multiple power development projects in Africa. Endeavor Energy is also a sponsor of the U.S. government’s Power Africa initiative. For additional information, please call +1 (281) 369-5908 or email us at email@example.com. For more information about Endeavor, visit www.endeavor-energy.com.
Energie, Environnement et Mines (E2M) is an energy-focused project developer and consulting company founded by Mauritania’s former oil, energy and mines minister (Taleb Ould Abdivall). For more information about E2M, visit www.edeuxm.com/en.
About Denham Capital
Since its founding in 2004 by Stu Porter, Denham Capital is a leading energy and resources focused private equity firm with approximately $9.3 billion of committed capital across ten institutional funds, with offices in London, Boston, Houston and Perth. Denham invests in three energy and resources sectors: International Power, Oil & Gas and Mining. The firm sponsors entrepreneurs with the financial and other resources they need to create successful energy and resources businesses. Specifically, Denham seeks to establish long term partnerships with entrepreneurs and companies who share our vision for growth and value creation. Denham’s global investment staff has extensive energy and resources investment experience, including technical experience as engineers, operators, and business owners. The Denham teams believes that our tactical expertise within our industry sectors coupled with a disciplined approach centered around fairness and shared success make us a strong investment partner. For more information about Denham, visit www.denhamcapital.com
Denham International Power seeks to build (and opportunistically buy) and monetize, low-cost and long-term contracted power generation assets in high-growth economies. Denham has been executing on its International Power strategy since 2010 and currently has six active teams across 19 global offices with over 3,000MW in operation, construction or with PPAs. Senior members of our global team have been investing together for over 11 years and the entire team is comprised of 10 investment professionals with over 130 years combined experience in the Power sector.
About the Overseas Private Investment Corporation (OPIC)
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad.
OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers. For more information about OPIC, visit www.opic.gov.
About CDC Group plc
CDC Group plc is the UK’s development finance institution. Wholly owned by the UK Government, it invests in sub-Saharan Africa and South Asia with the aim of supporting economic development to create jobs. CDC has invested in Africa since 1948. CDC takes a flexible approach and provides capital in all its forms, including equity, debt, mezzanine and guarantees, to meet businesses’ needs and achieve development impact. CDC has net assets of £4.8bn. Find out more at: www.cdcgroup.com