Business in Cameroon | The Cameroonian President authorized last February 22 the economy minister, Alamine Ousmane Mey, to sign a loan agreement with World Bank’s subsidiary, the International Development Association (IDA), for an amount of €24.5 million, or XAF16.3 billion.
According to the related presidential decree, the money will be used to finance the Technical Assistance Project for the hydroelectric development of the Sanaga River, component 1 of which funds will be provided for the technical assistance required to pick and develop a big hydro site on the river under a public-private partnership model with the private side being selected following a tender.
Component 2 will contribute to strengthening the government’s capacity to fulfil its responsibilities during the construction of the Nachtigal hydroelectric project (420 MW) on the Sanaga River, including assisting government entities in monitoring project construction and the implementation of the Environmental and Social Management Plan.
As regards component 3, it will fund a number of analytical works to design a long-term strategy for mitigating hydrological risks and protecting Cameroon from climate risks as well as the volatility of power production costs.
According to the World Bank, Cameroon holds the third largest hydropower potential in sub-Saharan Africa, currently estimated at more than 20,000 MW in equipment capacity, with the Sanaga River watershed which provides nearly half of the untapped potential.
Cameroon’s current hydroelectric power generation capacity is 723 MW, covering the Song Loulou dam (384 MW) and Edéa dam (267 MW) located on the Sanaga River, as well as Lagdo dam (72 MW) on the Benue River.