AFC invests in Cameroon's 420 MW hydropower plant

Africa Finance Corporation ("AFC" or "the Company"), Africa's leading infrastructure development financial institution, is pleased to announce its intention to invest in the Nachtigal Hydro Power Company ( "NHPC"), located 65 km north of Yaoundé in Cameroon. .

The 1.2 billion euros power generation project will include a 420 MW hydropower plant as well as a 50 km transmission line. The financing structure will use a debt-to-equity ratio of 76:24, with AFC providing a loan of 50 million euros and additional interest rate swaps for 18 years up to 75 years. millions of euros. Construction is expected to begin by the end of 2018.

Other high profile lenders in the investment consortium include the International Finance Corporation, the European Investment Bank, Proparco, Societe Generale and Standard Chartered, whose project sponsors include:

• Electricité de France International, recognized worldwide for its expertise in the field of hydroelectricity (NHPC participation: 40%);

• InfraVentures, the World Bank Infrastructure Project Development Fund (30% stake in NHPC); and,

• The Government of Cameroon (30% stake in NHPC).

This investment in the energy sector in Cameroon stems from the steady growth of electricity demand in the country, both for domestic and industrial use. For example, during the 2012-2016 period, demand grew at a compound annual growth rate of 7.6%, from 4.2 TWh to 5.7 TWh in the network to which Nachtigal will connect. Currently, demand on the network to which Nachtigal will be connected is expected to more than double, from 5.7 TWh in 2016 to more than 13 TWh by 2030.

At the same time, Eneo Cameroon S.A., the country's leading utility and NHPC buyer, has made significant operational improvements. This had the effect of strengthening the liquidity support provided to NHPC over the Kribi Power Development Corporation's PPI, which had attracted a similar group of lenders.

As with all projects in which Africa Finance Corporation participates, the decision to move forward with the Nachtigal hydropower project was based on its potential for economic development while taking into account its wider impact. NHPC will be the cornerstone of Cameroon's Low Carbon Development Plan and was chosen because it has been ranked as the best future hydroelectric project to be developed under the CHRA. AFC, sponsors and lenders will develop the project according to national and international best practices in environmental and social management and infrastructure construction.

Samaila Zubairu, President and CEO of AFC, commented on the announcement: "Cameroon is the typical example of a country that, in recent years, has demonstrated its deep commitment overcome its energy deficit problems by successfully creating a highly investable sector. The financial closure of such projects and the Kribi PPI testify to their efforts.

"In addition, the International Monetary Fund has raised the prospects for economic growth in Cameroon to 4.2% from 3.2% in 2017, we are happy to invest in the country's critical infrastructure that will help stimulate future economic growth in the coming years, as well as to the population. of Cameroon achieve their development aspirations. "

Distributed by Africa Media Agency (AMA) for Africa Finance Corporation (AFC).