(Business in Cameroon) - The recent findings from the Electricity Sector Regulatory Agency (Arsel) mission, conducted on August 11, 2023, at the Nachtigal hydroelectric dam construction site, raised concerns during the visit of the Vice President of the World Bank for West and Central Africa, Ousmane Diagana. Accompanied by the Cameroonian ministers of Economy and Water and Energy, his visit aimed to address questions arising from Arsel's leaked report.

Disclosed on August 29, 2023, the Arsel report highlighted issues such as cracks with water infiltration on the labyrinth spillway dam and the water intake of the plant, along with "early and accelerated degradation of the concrete" on the spillway basin. This information cast a shadow over the previously well-regarded construction site, known for its steady progress.

In response to the concerns, a closed-door meeting was held with the officials of the Nachtigal Hydro Power Company (NHPC). Following this meeting, the Minister of Water and Energy, Gaston Eloundou Essomba, ensured that Vincent Leroux, NHPC's MD, would address the issues during a subsequent press conference. The aim was to provide clarity and dispel any potential misunderstandings.

Vincent Leroux assured, "the structure complies with all the rules of the trade." He explained that during the water filling tests of the dam, there were indeed leaks at the joint level, but these tests are meant to identify issues for subsequent repair through injections. Leroux emphasized that there is nothing to be alarmed about, as confirmed by all the control agencies overseeing the project.

As of October 31, 2023, the project's completion rate is 91%. In its report to the Ministry of Water and Energy (Minee), Arsel expressed concern about delays in the project's delivery due to observed cracks with water infiltrations and the early and accelerated degradation of concrete. NHPC responded that the delivery schedule remains unchanged.

"The work is progressing smoothly," indicated the company, 40% controlled by Électricité de France (EDF). NHPC is committed to delivering the first of the 7 development groups, totaling 60 MW, at the end of December under the best conditions of quality, health, and safety for the workers.

Efforts by NHPC and its partners earned the congratulations of the Vice President of the World Bank. The Bretton Woods institution, controlling 20% of NHPC's capital through the International Finance Corporation (IFC), has committed to injecting CFA142 billion into this infrastructure.

One of the aims of the NHPC CEO's press conference, led by Minister Eloundou Essomba, is to prevent Arsel's revelations from further eroding the confidence of financial institutions in the local electricity sector. This is critical as Cameroon urgently needs to secure the CFA400 billion required for the implementation of priority actions in its electricity sector recovery plan.

Notably, funders are concerned about the financial deficit in the sector, which is the root cause of Eneo's insolvency. This has also led to uncertainty about the management model of the entity emerging from the purchase of assets inEneo by the British investment fund Actis. This issue was at the core of the high-level meeting held by the Vice President of the World Bank on November 20, 2023, in Yaoundé with key players in the electricity sector. According to our information, the Bretton Woods institution presented several options, leaving the government to make the final decision.