Conventions have been signed giving way to AfDB's Africa 50 and STOA Infrastructure & Energy to take up shares in the Nachtigal Hydro Power Company (NHPC).
Several conventions were signed in Yaounde on Tuesday December 4, 2018 to pave the way for the first disbursement of funds for the effective kick off of construction of the Nachtigal Hydro-electricity Dam. Two of the conventions brought in additional two shareholders of the Nachtigal Hydro Power Company; the outfit in charge of constructing and managing the dam.
In one of the conventions, the government of Cameroon accorded some of its shares to the African Development Bank's infrastructure investment platform, Africa 50. While the Minister of Finance, Louis Paul Motaze signed on behalf of the government, Alain Ebobisse, Chief Executive Officer of Africa 50 represented his structure.
In the other convention, the International Finance Corporation of the World Bank Group ceded some of it shares to STOA Infra & Energy. Mehita Sylla, Resident Representative of IFC in Cameroon and Charles-Henri Malecot, Director General of STOA Infra & Energy, took the engagement.
A collective convention was then signed amongst: the Government of Cameroon, Africa 50, the International Finance Corporation, STOA Infra & Energy, Electricité de France (EDF) and the Nachtigal Hydro Power Company (NHPC). Following the collective convention, the distribution of shares at NHPC now stands as follows: EDF, 40 per cent; IFC, 20 per cent; Government of Cameroon, 15 per cent; Africa 50, 15 per cent; and STOA Infra & Energy, 10 per cent.
Besides the financing aspect, another convention was signed between Nachtigal Hydro Power Company and the National Electricity Transport Corporation. While Augusto Soares Dos Reis, Director General of NHPC signed for his company, Victor Mbemi Nyanga, Director General of SONATREL, represented the electricity transport company. The agreement covers the transportation of electricity produced by the Nachtigal power plant to the Nyom II connection substation, through a double circuit 50.3 km transmission line (225kV) equipped with two bundle conductors.
Works to construct the dam on the Sanaga river course at the Nachtigal waterfall, costing FCFA 786 billion, are expected to begin this month and end in 2022. The project upon completion will generate 420MW of electricity. This is expected to considerably address the country's energy need by 30 per cent.