FMO, the Dutch development bank, has invested EUR 18 million in the Kribi Power Development Company to support the development, construction and operation of a new natural gas-fired power plant and transmission line.
The Kribi power project, located in the southern province of Cameroon, consists of a 216 MW natural gas-fired power plant and a 100km double circuit transmission line of 225 KV. It is to be implemented as a public-private-partnership between the Government of Cameroon and the AES Corporation (USA), who own 44 and 56 % of the company respectively. The project will run on natural gas supplied from the offshore Sanaga South gas field, triggering the first commercial development of Cameroon’s substantial gas reserves. Those reserves have the potential to complement the country’s oil supplies and the development of its vast hydropower resources.
FMO’s financing has been implemented within the framework of a debt facility provided by of a group of Development Finance Institutions, including the IFC - who also acted as coordinator - the African Development Bank (AfDB), the European Investment Bank (EIB), PROPARCO, and the Central African Development Bank (BDEAC). These institutions together will provide EUR 138 million or 70% of the total project debt through parallel loans. IDA will provide a Partial Risk Guarantee to facilitate Cameroon’s first long-term, local currency loan for infrastructure. A local bank syndicate, led by Standard Chartered bank, will be providing EUR 60 million equivalent to the project.
“The development of Kribi will help meet the growing domestic demand for electricity and contribute directly to the development of Cameroon’s electric power infrastructure. We appreciate the support of institutions that share our commitment to responding to Cameroon’s critical infrastructure needs” said Jean David Bile, CEO of AES Africa.
Power shortages are estimated to currently cost the economy of Cameroon 2% of GDP growth and 5% of lost enterprise revenues. Increasing power generation capacity, efficiency and sustainability is at the heart of the Government of Cameroon’s Vision 2035 and Growth and Employment Strategy to transform Cameroon into an industrialized emerging economy.
About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on four sectors that have high development impact: financial institutions, energy, housing, and agribusiness. With an investment portfolio of EUR 5 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
Press contact:
Eveline Schijf, Communications Officer (PR)
T: +31 70 314 9924
E: e.schijf@fmo.nl
