Cameroon is set to receive US $794.5m for the construction of 420 MW Nachtigal hydroelectric project after the World Bank approved of the investment package.
According to World Bank country director for Cameroon, Elisabeth Huybens the investment in the clean energy sector is essential to reduce electricity cost and ensure the competitiveness of Cameroon’s economy.
“The Nachtigal Project is one of the very few public-private partnership (PPP) hydropower projects in Sub-Saharan Africa that will accelerate Cameroon’s realization of its development goals, including poverty reduction”, She said.
Country’s electricity needs
The plant is expected to provide up to one third of the country’s electricity needs. It will be located on the Sanaga River 65 km from the capital of Yaounde. Nacthigal Hydro Power Company has a 35-year lease to run the facility. Electricity will be transmitted to the capitol via a 50-km-long transmission line.
Electricité de France (EDF) along with Cameroon’s government and the International Finance Corporation (IFC) are also supporting the construction and exploitation of the Nachtigal dam.
“By working for almost five years as co-developer of the project, the Nachtigal HPP is a great example of how IFC is using InfraVentures to help projects become a reality in Africa,” said Elisabeth.
Construction is scheduled to begin in October and the plant is to be commissioned in 2021 and will be the largest energy generating infrastructure in Cameroon.