- TDB Group and Anzana Electric Group (“Anzana”) have announced the financial close and first utilization of a portfolio project debt package for two run-of-river hydropower projects in Burundi developed by Songa Energy.
- This USD 35 million 10.65MW long-term debt financing facility represents a first-of-its-kind transaction for Burundi, a market where only about 10% of the population have access to electricity.
- The two power projects in construction, the 1.65 MW Upper Ruvyironza SHP and the 9.0 MW Upper Mulembwe SHP, both in South Central Burundi, will begin producing power for the grid in 2025 and 2027, respectively.
- The projects benefit from political risk insurance and payment guarantees from the African Trade & Investment Development Insurance (“ATIDI”)
With less than 100 MW of operational generation capacity, the country’s capacity will be boosted by over 10% through this project alone. Anzana is the sole equity investor in the projects, which were developed under the Public-Private Partnership framework in Burundi.
As a regional multilateral development finance institution, TDB plays a significant role in the electricity sector across Africa. This includes contributing to economic development through financing of renewable energy infrastructure and facilitating partnerships between governments and private sector players. The Songa Energy projects represent a bright, new chapter in TDB’s support of private power projects in Burundi, home to one of the Bank’s principal offices.
In reaching this milestone, Anzana and TDB collaborated with key partners to enhance the long-term viability and bankability of the Songa Energy projects. This includes leveraging the African Trade & Investment Development Insurance’s (ATIDI) political risk insurance and payment guarantee, via the Regional Liquidity Support Facility (RLSF), to mitigate risk and ensure a stable investment environment. These partnerships play a critical role in securing investor confidence, protecting project revenues, and creating a template to foster more sustainable energy development in Burundi.
The Government of Burundi has played a pivotal role in enabling the success of the Songa Energy projects by fostering a supportive policy and regulatory environment. Through active collaboration with Anzana and its partners, the government, including the ministries in charge of energy, finance, and environment, as well as Burundi’s Public-Private Partnership Unit and the Authority for Regulation of Water and Energy Sectors, has facilitated project approvals and licenses, ensured alignment with national electrification goals, and demonstrated strong commitment to expanding energy access.
Author: Bryan Groenendaal
