(Business in Cameroon) - The board of directors of the African development bank (AfDB) through its section in charge of the private sector has approved a senior loan of EUR150 million to finance the construction of the Nachtigal dam (whose generating capacity is 400MW) in Cameroon. The loan was approved on November 28, 2017, in Abidjan, Côte d’Ivoire.
According to AfDB, this “intervention responds to the urgent need to build additional production capacity that would make a major impact in accelerating the country development”. Moreover, this financing complements the one already consented in favor of Cameroon's electricity sector (Eneo, Kribi, Dibamba, Lom Pangar and Preretd projects which are projects to strengthen and extend electricity transmission networks). It also demonstrates AfDB’s strong commitment to Cameroon’s energy sector.
Nachtigal will come online in 2022, increasing the country’s power output by 30% and also help lower the cost of electricity in the long term.
This approval falls in line with the bank’s initiatives to promote renewable energies whose share in power mix increased from 14% between 2007 and 2011 to 70% between 2012 and 2017.
The 420 MW hydroelectric power plant, jointly designed and developed by Cameroon, EDF International-Electricité de France, and the International Finance Corporation (IFC), is an essential component of Cameroon’s Power Development National Plan and as such was recognized as a key priority for the country.