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IFC, FMO and AfDB Invest in Dibamba Power Company to Improve Power Supply in Cameroon


Contact:
In Washington
Zibu Sibanda, IFC
Ph: +1-202-473-0605
E-mail: zsibanda@ifc.org

In The Hague
Eveline Schijf, FMO

Ph: +31 70 314 9924
E-mail: e.schijf@fmo.nl

In Tunis
Nicol Houra Onike
African Development Bank
Ph +216 7110 3227
Email: o.nicol@afdb.org


Washington/The Hague/Tunis, May 17, 2011— IFC, a member of the World Bank Group, the Netherlands Development Finance Company (FMO), and the African Development Bank (AfDB),  are investing €66 million in the Dibamba Power Development Company to help it build an 86 megawatt powerplant that will ensure a reliable electricity supply and improve energy security in Cameroon.

The Dibamba Power Development Company  is a subsidiary of the AES Corporation and is 44 percent owned by the government of Cameroon.  

IFC, FMO and AfDB are each lending €22 million to the €92 million Dibamba project, a heavy fuel, oil-fired power plant located near Douala, Cameroon‘s industrial center. The plant will be connected to the Southern Interconnected Grid via a two-kilometer transmission line, also financed as part of the project.

Andrew Vesey, AES Executive Vice President and President of the Latin America and Africa Region, said, “The expansion of Dibamba will help meet the growing domestic demand for electricity and contribute directly to the development of Cameroon’s electric power infrastructure. We are pleased to work with institutions that share our commitment to responding to Cameroon’s critical infrastructure needs.”  

Bernard Sheahan, IFC Director for Infrastructure in Africa and Latin America, said, “As Cameroon‘s first IPP, the Dibamba project marks an important next step in the country’s development of its power sector and serves as an example of how privatization and sector reform can help attract private sector investment to the region.IFC is very pleased to be a long term partner to AES and the Government of Cameroon in the development of the country’s power sector“.


Dave Smit, FMO‘s Manager Structured Finance Energy, said, “The power supply from the Dibamba project contributes to diversifying Cameroon’s energy mix, improving overall reliability of electricity supply, and will boost the country’s energy net supply capacity by around 10 percent. FMO is very pleased to play a part in stimulating Cameroon‘s development in this way.“  

Neside Tas Anvaripour, Division Manager, Infrastructure and Private Public Partnerships, Private Sector Department, in the African Development Bank,said, “A reliable and affordable energy supply is critical to enhancing private sector development, growing the economy, and reducing poverty. By building new power infrastructure, the Dibamba plant addresses one of AfDB’s key objectives, which is to help improve the availability and reliability of electricity to industries and households.”

The Dibamba plant,Cameroon’s first independent power producer, has been developed to avoid imminent electricity shortages and avert an emergency power situation. It will help Cameroon meet its growing demand for power, particularly during peak periods, and provides a much-needed thermal component to a largely hydro based system, which is unreliable in years of poor rainfall.

The project will initially be oil-based, but the long-term debt includes an incentive for the plant’s conversion to gas at a later stage.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.

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About FMO
The Netherlands Development Finance Company (FMO) is the international entrepreneurial bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of EUR 5.3 billion, FMO is one of the largest bilateral private sector development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.

About AfDB
The African Development Bank (AfDB) is a multilateral institution that promotes sustainable development in Africa. It is the premier development financial institution of Africa, engaged in mobilizing resources for the economic and social progress of its 53 African Regional Member Countries (RMCs).

 The AfDB provides a range of financial products for the private sector to complement its traditional lending operations to governments. The Bank Group promotes strong social and corporate governance standards as well as help African Companies achieve international best practices, making them more competitive at home and in the international marketplace.