(Business in Cameroon) - The International Bank for Reconstruction and Development (IBRD) could soon inject $300 million, XAF169 billion, into the Nachtigal hydroelectric project (420 MW), located 65 km northeast of Yaoundé, Cameroon's capital.
President Paul Biya has in this vein signed a decree authorizing the Minister in charge of the Economy to enter into a compensation agreement as part of the granting of a partial guarantee relating to the dams’ financing.
This new financing comes at a time when the Cameroonian government has just mobilized a global amount of XAF786 billion to build the country's largest hydroelectric power plant.
The project is led by Nachtigal Hydro Power Company (NHPC), 40% owned by EDF, 20% by the International Finance Corporation (IFC), 15% by the State of Cameroon, 15% by Africa50 and 10% by STOA Infra & Energy.
According to agreed terms, NHPC will operate the facility for 35 years. The dam, scheduled to be commissioned in 2023, will produce more than 2,900 GWh/year. Works, let’s note, are expected to begin this month and last 57 months.