HomeNewsTLOU Energy to raise US $2.6m for Lesedi power project

TLOU Energy to raise US $2.6m for Lesedi power project

TLOU Energy is planning to raise US $2.6m for the Lesedi power project in Botswana. The funds are expected to go towards the construction of a 66KV transmission line from the project to the existing electricity grid at Serowe, and towards field operating costs and ancillary equipment.

The TLOU Energy Lesedi power project is set to be developed in two phases. Phase one involves transmission lines construction, sub-stations, grid connection, electricity generators and potentially the drilling of additional gas wells. Initial generation is proposed to be up to 2MW of electricity. Funding required for phase one is US $10m which can be staged if necessary.

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Phase two involves the expansion of electricity generation up to 10MW. This will include drilling of gas wells and the purchase of additional generation assets. Funding required for phase two is US $20m. Upon successful completion of phase one and two, the company plans to expand the project beyond 10MW.

Also Read: Ginchi Power Distribution Station in Oromia, Ethiopia, has been inaugurated

Funding discussions

Early this month, the company announced that funding discussions with a number of parties were ongoing. The most advanced project finance discussions were with a very reputable Botswana based entity. Due to confidentiality the Company was unable to name the entity concerned at the time.

However, the company confirmed that their investment committee and board had discussed and were favourably disposed to Tlou’s proposal. They were proceeding to get a third-party technical review of the project as part of their due diligence process. Once the report is assessed an investment decision can be made.

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Dennis Ayemba
Country/ Features Editor, Kenya

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