A million people in Cameroon to benefit from new EIB funded power plant
The European Investment Bank has agreed to provide EUR 29.5m long-term funding for the new Kribi power plant in Cameroon. Availability of electricity for more than 160,000 households, local industry and small businesses is set to be transformed by the first natural gas powered power plant in the country.
The project includes a new 216 megawatt natural gas power plant of a new power plant in southern Cameroon, a new 100km high voltage transmission line, new substations and transformers. This will make a significant contribution to enhancing the country’s electricity supply, currently estimated at 1,021 megawatts. The Kribi power project provides a low-cost gas power solution to increase security of energy supply, in particular during the dry season, when hydropower cannot be guaranteed.
“The Kribi power project will ensure the availability of electricity in Cameroon, essential for daily life and economic growth. The European Investment Bank recognises the importance of transmission and increased generation capacity for Africa.” said Plutarchos Sakellaris, European Investment Bank Vice President.
"The European Union greatly supports the Kribi natural gas power project, which will create an alternative source of energy to hydropower and increase productive capacities in Cameroon benefiting trade, job creation and economic growth" stated Ambassador Raul Mateus Paula, Head of the EU Delegation to Cameroon.
“The development of Kribi will help meet the growing domestic demand for electricity and contribute directly to the development of Cameroon’s electric power infrastructure. We appreciate the support of institutions that share our commitment to responding to Cameroon’s critical infrastructure needs” said Jean David Bile, CEO of AES Africa.
The Kribi Power Development Company has been created by the Government of Cameroon and private sponsor, the AES Corporation, to implement the EUR 263m project. The power plant will run primarily on natural gas supplied from Cameroon’s offshore Sanaga South gas field. The country’s national power utility AES-SONEL will be the sole off-taker of power from the Kribi plant.
Resettlement of 680 household will follow World Bank guidelines to ensure appropriate compensation for loss of land, crops and housing.
The project is also expected to be funded by the IFC, African Development Bank, Netherlands Development Finance Company (FMO), Proparco and the Central African Development Bank. Support by local commercial banks will be backed by a World Bank guarantee for the benefit of the project.
Notes for the Editor:
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
The EIB has been a development partner in many African, Caribbean and Pacific (ACP) countries since 1963 through a series of lending mandates from the European Council. EIB loans in the ACP regions support the alleviation of poverty and the development of sustainable economic growth. The Bank lends from two sources - own resources and the Investment Facility, a revolving fund financed by the EU Member States through the European Development Fund.