Project detail - NACHTIGAL HYDRO POWER COMPANY S.A.

Who is our customer

Our client is Nachtigal Hydro Power Company (NHPC), a company registered under the laws of Cameroon. The company is currently owned by EDF International (40%), Government of Cameroon (30%) and IFC (30%), who together develop and fund the project.

What is our funding objective?

Our funding will be used to develop, construct and operate a 420MW hydropower plant in Cameroon. The project will be connected to the Southern interconnected grid and when operational in 2023 it will supply low cost electricity. Electricity will be sold to ENEO under a 35 year power purchase agreement.

Why do we fund this investment?

This renewable energy project in a Sub-Saharan country fits FMO’s mandate and strategy. A cornerstone of Cameroon’s electricity sector development plan, Nachtigal is a national priority which will enhance the reliability of the country’s power system and satisfy the growing demand in the country at a competitive tariff, thereby benefitting Cameroonian consumers. Its expected power generation will cover 30% of the country’s electricity demand, amounting to an annual output of nearly 3TWh. The project has demonstrated greenhouse gas savings. The project contributes to the following SDG’s: 7 Affordable and Clean Energy, 8 Decent Work and Economic Growth, 13 Climate Action.

What is the Environmental and Social categorization rationale?

The E&S Category is A, as it is recognised that there would be high risk to communities and the environment from this type of project. Adverse impacts will be managed, and positive impacts enhanced in line with IFC PS 1,2,3,4,5, 6 and 8. Environmental and social performance management has been integral to project development. A robust and well-resourced Environmental and Social Management System is in place to avoid, minimise or otherwise mitigate all adverse impacts. Land acquisition is being conducted to the highest possible standards, with intensive community involvement, and led by leading world experts on resettlement and livelihood restoration. NHPC has undertaken meaningful engagement with local communities and key stakeholders over years, taking community priorities and requirements into account in project design and management. IFC PS7 is considered not to be triggered by this project, as, according to the robust environmental and social investigations undertaken, no communities of Indigenous Peoples are found to be impacted in any way by the project.