A financing agreement between the European Union and Cameroon has been signed to partly fund the Rural Electricity Access Project for Underserved Regions of Cameroon (PERACE).
The European Union (EU) has made available to Cameroon circa FCFA 10 billion in the form of a grant to partially finance the country's Rural Electricity Access Project for Underserved Regions (PERACE). A financing agreement was reached in Yaounde, Tuesday November 26, 2019, between the EU Ambassador to Cameroon, Hans Peter Shadeck and the Minister of Economy, Planning and Regional Development, Alamine Ousmane Mey. Though the electrification project worth about FCFA 122 billion covers six regions of the country, notably North West, South West, North, Adamawa, East and Far North, the EU funds will cover just the components in the Adamawa and Far North Regions. The rest of the cost of the project will be covered by loans from the European Investment Bank and World Bank. The project brief shows that PERACE will consist of rural electrification by extension of medium and low voltages as well as reinforcements and extension of existing high and low voltage networks to enhance the security of power supply to new villages in Far North. For this project, there shall be public-private partnership whereby the private sector, including Energy of Cameroon (ENEO), will play a role as operator and not direct investor. It shall also consist, amongst others, of securing supply of existing isolated mini-grids operated by ENEO in selected localities by hybridization, namely, adding photovoltaic (PV) solar mini-plants and extension of the existing HT and BTA networks for better service coverage. Prior to the signing of the convention, EU and Cameroon officials held a structured economic dialogue during which they followed up discussions of a similar dialogue held in June this year. They also used the meeting to look at the level of implementation of the National Indicative Programme of the 11th European Development Fund. The officials were also keen on examining budgetary support for the periods 2017-2019 and 2020-2021, as well as the National Development Strategy 2020-2030 and Programming 2021-2027. In addition, the future and new missions of the National Authoring Office of the European Development Fund in Cameroon came under discussions. Moreover, they looked at trade cooperation, investment plan of the EU, dynamism in the mobilisation of resources besides EDF, orientation and maturity potential of projects to be submitted for financing by the External Investment Plan of the EU, amongst others.