Mount Coffee Hydropower Plant – Saint Paul 2 (SP2) - Liberia Electricity Corporation (LEC)

Company Description

The Liberia Electricity Corporation is a public utility created by the Government of Liberia in 1973. The act creating LEC mandates the entity to produce and supply economic and reliable electric power to the entire nation as well as maintaining the corporation financial viability. LEC is in the business of ensuring that efficient, reliable and affordable electric power is available, meeting the increasing demand for electric energy in Liberia and serving as a catalyst for socio-economic development.

Countries of Operation

Liberia

Ownership of Company: Local Company

Number of years since incorporated: 52

Project Pitch

Mount Coffee Hydropower Plant – Saint Paul 2 (SP2): SP2 would be the second hydropower project on the St Paul River and would be located around 50km upstream of the existing Mount Coffee Hydropower (MCHPP). SP2 has been identified in Liberia’s National Energy Masterplan as the next project in the country's least-cost power supply options to be deloped after the MCHPP Extension project (currenly in the design satge) . The project adds a second powerhouse on the St. Paul River with 190 to 250MW installed capacity and up to an average annual production of 960GWh/year of clean energy. SP2 is the next hydropower project to be developed as part of a cascade of hydropower projects enviasged on the St Paul River (the others being Via/SP4 and SP1B). Hydropower from SP2 will provided low-cost, stable, zero emission base-load energy to support additional solarPV penetration on the grid, thereby reducing reliance on expensive and polluting thermal generation and supporting Liberia’s industrial growth, including mining demand. The National Masterplan highlights the St. Paul cascade as the most economical long-term energy energy backbone which will provide high availaibility and a certain regualtion benefit to MCHPP downstream. The RESPITE hybridisation study confirms SP2’s suitability for dry-season reliability and together with the Extended MCHPP, allows for regulation of up to 95 MWp of solar PV. SP2 also aligns with future WAPP 225 kV interconnection, enabling regional power trade. The project’s business model is grid-connected renewable generation dispatched through the National Load Dispatch Center, supporting domestic and industrial/mining supply and regional opportunities. SP2 would be delivered to the World Bank and IFC's strict Environmental and Social Framework requirments (including ESS6 and IFC PS6 respectively) and with open collaboration and coordination with existing and planned national and regional transmission systems.

Team

The SP2 team includes hydropower engineers, dam specialists, system planners, environmental and social experts, procurement teams, and project finance staff. Development is aligned with MME, EPA, WAPP, and international partners.

Type of Project

Other: Hydropower generation infrastructure

Stage

Established (mature)

Annual Revenue (in EUR)

10.000.000 - 100.000.000 EUR

Number of employees

>500

Total Project Cost (in EUR)

750,000,000 – 800,000,000 EUR

Financing needs (in EUR)

750,000,000 – 800,000,000 EUR

Type of financing needed

Debt; Grant

The Company is looking for:

Financing under a Private/Public Partnership arrangement (as is the case for the Mpatamanga HPP in Malawi) with a possible additiponal funding stream from Natural Capital Financing using Liberia's newly realeased carbon/natural credit trading policy ; International EPC type of delivery approach (Build, Own, Operate, Transfer) ; Offtakers (mining sector); Regional/Liberian Technology Solution/Equipment providers and Contractors; Expanded domestic customer base; a Transaction Advisor (ASAP) and environmental/social project development partners.

Planned allocation of fundraising capital

Greenfield (new activity for the company)