logoBC
Yaoundé - 09 June 2023 -
Electricity

Morocco’s Platinum Power could abandon Makay plant project on financial issues

Morocco’s Platinum Power could abandon Makay plant project on financial issues
  • Comments   -   Monday, 21 January 2019 15:28

(Business in Cameroon) - The 400-MW Makay hydro plant planned by the Moroccan Platinum Power in the central district of Nyong-Ekellé may not emerge. The reason, Moroccan media reveal, is that the “pioneer and behemoth in the sector of private renewable energy-based power production in Morocco may close doors” as it is “near bankruptcy”. Delays in developing (close financing and commence works) two projects in Cameroon and Côte d’Ivoire has significantly weighed on the company’s cash flow. The financial issues now facing Platinum Power are such that “salaries have not been paid for months and activities in Cameroonian and Ivorian units are almost at a standstill; and there is no stimulus package to date”.

The only way out for this company is, sources said, to seal a refinancing agreement with its major shareholder, the New-York-based US investment fund Brookstone Partners.

As a reminder, the framework agreement for the development; financing, building and operation of the Makay hydro plant and related transport facilities was signed July, 1, 2018 in Yaoundé between the Cameroonian government and Platinum Power.

The project was set to reach financial close in Q3 2018. According to official data, the plant’s commissioning was scheduled for the end of 2020, “to bring electricity to additional 6 million people”. Platinum Power had already concluded, since April 2017, a power sales agreement with the power utility Eneo.

Let’s note that Platinum Power operates a pipeline of nearly 1,000 MW of hydroelectric, wind and solar projects in Morocco, Côte d'Ivoire, Cameroon and Senegal.

Brice R. Mbodiam

cameroon-govt-plans-to-sell-47-seed-farms-to-the-private-sector
The Cameroonian Ministry of Agriculture and Rural Development (Minader) has just launched a call for expressions of interest to recruit private partners...
malian-cheick-kante-appointed-world-bank-director-of-operations-for-cameroon
Malian Cheick Fantamady Kanté is the World Bank's new Director of Operations for Cameroon. The newly appointed manager was officially presented to the...
cameroonian-jacques-edjangue-confirmed-as-afdb-vice-president
Cameroonian Jacques Edjangue has been confirmed Thursday as the Vice President for People and Talent Management of the African Development Bank (AfDB)...
cameroon-pays-back-cfa63-4bn-on-beac-securities-market-seeks-additional-cfa20bn
Cameroon made last June 5 the issuance of 7-year fungible Treasury bonds (OTAs) on the Beac public securities market aiming at raising CFA20 billion, the...

Mags frontpage


Business in Cameroon n110: April 2022

Covid-19, war in Europe: Some Cameroonian firms will suffer


Albert Zeufack: “Today, the most important market is in Asia”


Investir au Cameroun n120: Avril 2022

Covid-19, guerre en Europe : des entreprises camerounaises vont souffrir


Albert Zeufack: « Le marché le plus important aujourd’hui, c’est l’Asie »