Partners To Finance FCFA 786 Billion Project
The Nachtigal Hydro Power Project located in the Centre Region of Cameroon constitutes one of the great pillars is achieving President Paul Biya’s commitment during his inaugural speech on November 6, 2018 to improve the living conditions of the Cameroon people, notably through the gra dual and total coverage of the country in electric energy. Two days after President Biya reaffirmed his commitment on November 8, 2018, he instructed the Minister of Finance Louis Paul Motaze to sign financial agreements relating to the construction of the Nachtigal upstream hydroelectric dam in Paris, France.
The financing for the project is being raised by the Nachtigal Hydro Power Com pany (NHPC) whose stakeholders are Electricité de France, International Finance Corporation and the State of Cameroon. The dam with a capacity of 420 megawatts of energy has total cost of approximate FCFA 786 billion. It will represent 30 per cent of the installed capacity of electricity in Cameroon. Following the press release from the Minister of Finance, Louis Paul Motaze, a battery of international and national technical and financial partners signed the Paris financing agreements with the State of Cameroon.
International partners included the International Finance Corporation (IFC), a subsidiary of the World Bank and lead partner of the project’s 15 international lenders, the International Bank for Reconstruction and Development (IBRD), and Société Electricité de France (EDF). Local partners on their part include local banks such as the Standard Chartered Bank (SC), Société Générale Cameroun (SGC), Société Commerciale de Banque (SCB) and Banque Internationale du Cameroun pour l’Epargne et le Crédit (BICEC).
Finance Minister Mr Motaze in the release states that, “according to the measures taken by the technical teams, construction works will begin at the end of December 2018 for a period of 57 months.” This will be made possible thanks to the agreements signed in Paris that mark an important step in the process and assurance of the effective commencement of works on the Nachtigal upstream hydroelectric dam.