Douala, Cameroon, January 11, 2012
- IFC, a member of the World Bank Group is investing €60 million in direct
financing, and coordinating €138 million in syndicated and parallel loans
to the Kribi Power Development Company to support the development, construction
and operation of a new natural gas-fired power plant and transmission line
that will enhance the supply of reliable electricity and improve energy
security in Cameroon.
The Kribi power project, consisting of a 216 megawatt natural gas-fired
power plant and a 100 kilometer 225 kilovolt double circuit transmission
line, will be implemented as a public-private partnership between the Government
of Cameroon and the AES Corporation (USA), which own 44 and 56 percent
of the company respectively. The plant will run on natural gas supplied
from the offshore Sanaga South gas field – marking the first commercial
development of Cameroon’s substantial gas reserves that have the potential
to compensate for the country’s declining oil supplies and complement
the development of its vast hydropower resources.
In addition to providing €60 million in direct financing to this €263
million project, IFC is coordinating additional parallel and syndicated
loans from development finance institutions, including the African Development
Bank (AfDB), the Netherlands Development Finance Company (FMO), the French
Promotion and Investment Company for Economic Cooperation (PROPARCO), and
the Central African Development Bank (BDEAC). The European Investment Bank
is expected to finalize its financing to the project shortly. These institutions
will provide an additional €138 million of the project debt through syndicated
and parallel loans.
Jean David Bile, CEO of AES Africa said, “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.”
IFC and the International Development Association (IDA) have closely collaborated
in the preparation of the project, with IDA providing 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
the equivalent of €60 million to the project.
“The close collaboration between IFC and IDA was essential to securing
the financing for Kribi, which is expected to benefit a large number of
Cameroonians,” said Greg Binkert, World Bank Country Director for Cameroon.
“As a result of the innovative local currency IDA-guarantee, the project
will also help to deepen the domestic financial sector."
Thierry Tanoh, IFC Vice President for Sub-Saharan Africa, Latin America
and Western Europe, said, “IFC has a long-standing commitment to Cameroon’s
power sector, first as an advisor to the government in the privatization
of the country’s integrated electric utility, and subsequently as a lead
lender in two power transactions. As one of the few independent power projects
in Africa, Kribi will serve as an example of public-private partnerships
in the region.” Kribi is the second independent power project in
The World Bank estimates that power shortages currently cost the economy
2 percent of GDP growth and 5 percent in 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.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,