Implementation of the Rural Electrification and Energy Access Project in Underserved Areas in Cameroon (Perace) is set to begin this year according to Gaston Eloundou Essomba, the Minister of Water and Energy (Minee) in the Central African country.
“2022 is a pivotal year that corresponds to the mid-term review of the Perace, but also to the effective start of the pilot phase for the construction of connections through the revolving fund, which will concern peri-urban and urban areas, an operation that ultimately aims the realization of 163,000 social connections in partnership with Eneo Cameroon”, explained the minister during the 5th session of the Steering Committee of the rural electrification and energy access project.
According to the Minister, this year will see the payment of compensation and the effective start of rural electrification work, particularly in the Far North and East regions.
Progress made so far regarding subsidy for the Perace
So far Perace has already received funding from the World Bank, amounting to close to US$ 145.5M. The funding from the international financial organization will facilitate the electrification of 417 localities out of the 687 villages targeted, and the construction, in the Far North, North, East, North West, and South West regions, of 120,000 connections by 2025.
According to Gaston Eloundou Essomba, discussions are underway with the European Investment Bank (EIB) to finalize the financing dedicated to rural electrification works in the Adamaoua and North regions, and the construction of approximately 100,000 connections.
This finance is close to US$ 67M. The European Union (EU) has already mobilized a grant of slightly over US$ 18M to complete the financing of the EIB.
Rural Electrification & Energy Access in Underserved Areas of Cameroon
What we reported in March 2021
Approximately 700 localities without electricity in six of the ten regions of Cameroon will soon be electrified owing to the Rural Electrification and Energy Access Project in Underserved Areas of Cameroon (Perace).
The announcement was made by the Secretary-General of the Ministry of Water and Energy, Adolphe Ndjouke Thome, during the 4th session of the steering committee of the open Perace in Yaounde.
The targeted localities
Among the targeted localities, 315 are in the Far North, 200 in the North, 70 in Adamaoua, 30 in the East, 49 in the North-West, and 30 in the South-West. That is to say coverage of more than 2.7 million inhabitants which equals roughly to 370,000 households.
The project consists of the construction and renovation of low voltage lines, the construction, and rehabilitation of transformer stations, and the construction of small hydropower plants of lower powers, as well as solar photovoltaic plants.
The localities will be electrified as the project evolves, for it extends over a period of five years.
Funding for the project
Estimated to cost approximately over US$ 55m, the project in question is funded by the World Bank.
On June 12, last year an agreement of over US$ 162m was signed between the representative of the World Bank, Ibrah Ramdam Sanoussi, and the Cameroonian Minister of the Economy, plan and land use planning, Alamine Ousmane Mey.
These funds would facilitate the start of the implementation of the project.
Objective of the Perace
The main development objective of the Perace is to increase electricity access in underserved regions of the Central African country.
This will be achieved through the extension and reinforcement of existing networks, the construction of solar mini power plants through public-private partnerships (PPP), the establishment of a revolving fund to help finance initial household connection costs, and the strengthening of institutional capacity of the electricity sector and project management.