Wednesday , March 3 2021

AFD grants 97 billion FCFA loans to the government

To secure the construction, operation and maintenance of the French Development Agency (AFD) Nachtigal Hydropower Company (NHPC), Cameroon has been granted a loan of FRF 97 billion.

The French Development Agency (AFD), through its private equity subsidiary, Proparco, has responded positively to financing a 420 megawatt (MW) hydro power plant, which ultimately provides nearly 30 percent of the country's power generation, explains AFD in a press release.

According to the text, Nachtigal Power Plant intends to "Improve and secure access to electricity while contributing to the country's low carbon transition and also reducing the average cost of electricity generation in the country without the debt being significantly increased by the state's use of public-private partnerships to raise private capital."

According to the APR, this infrastructure is expected to face Cameroon's electricity shortage, with electricity demand rising by an average of 7 per cent a year and is expected to increase further.

Insufficient production is at odds with the strong hydropower potential of the country today, using 5%.

According to the description, the Nagaigal project, located on the Sanaga River, 65km northeast of Yaounde, includes 35 years of planning, construction, maintenance, operation and maintenance of the overpass pipe. water and the related 420 MW hydro power, but also transmission lines and transformers needed for electricity evacuation.

This hydropower project is a key milestone in the Electricity Development Plan (ESDP), developed by the Cameroon Government in 2014, supported by the World Bank.

Designed to operate in 2021, the total cost of the project is estimated at over 718 billion CFA francs and is financed by 24% of the equity and 76% of the external debt.

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