The International Finance Corporation (IFC) in partnership with the government of Cameroon, and EDF have signed a set of agreements that will lead to the construction of the Nachtigal hydroelectric plant.
The project is a 420MW run-of-river plant that will increase Cameroon’s power generation capacity by 30%.
It has benefited from the engagement of the World Bank and Multilateral Investment Guarantee Agency (MIGA) and was developed through IFC InfraVentures, an infrastructure project development fund.
IFC is the global coordinator of the financing package. Read more: Cameroon secures finance for Nachtigal hydroelectric project
The financier will directly invest €60 million ($68 million) in equity, lend up to €110 million ($124 million) for its own account, and mobilise an additional €806 million ($686 million) from 11 development finance institutions and four commercial banks.
French utility company EDF and Cameroon will also invest equity. The total project cost is €1.2 billion ($1.3 billion).
The International Bank for Reconstruction and Development (IBRD) and MIGA are providing guarantees for a total of €257 million ($289 million) and €192 million ($216 million), respectively.
The Nachtigal hydropower plant is due to be commissioned in 2023 and is anticipated will create up to 1,500 direct jobs during peak construction, of which 65% will be locally sourced.
It will be located on the Sanaga River near the Nachtigal Falls, 65km north-east of Yaoundé, the country’s capital city.