Joint development agreement of Nachtigal project signed at the Star Building
Par Ako Pauline Eneke, SPM, 21-11-2013
A joint development agreement for the construction of a power plant at Nachtigal to boost energy supply has been signed between the state and three parnters.
Estimated at 400 billion FCFA the project is expected to have a capacity of 360 with possibility of extesion to 420 megawatts however with a guaranteed capacity of 270 to 330 MW.
The ceremony, presided at by the Head of Government and assisted in the endorsement of the documents by the Minister of Energy and Water Resources, for the State of Cameroon, the representatives of Electricité de France (EDF), RIO TINTO ALCAN and International Finance corporations.
The agreement for the construction of a power plant at the Nachtigal is part of Government's policy to modernise energy supply to meet up with the growing demand in the country.
Agreed in 2005 between the State and Rio Tinto, the Nachtigal project will be a significant pawn in the energy sector. The project is estimated at 400 billion FCFA and the production capacity is projected at 330MW with the possibility of extension to 420MW.
Contribution to shares include 40% for IFC(an affiliate of the World Bank), 15 to 30% for the state, while Rio Tinto Alcan will contribute 5% of the shares. Participation at the development phase of the project includes 40% by the French energy company, 34% for the World Bank affiliate, while the state will contribute 26%.
The construction of the dam will begin six months after the signing of the agreement which was witnessed by Prime Minister Yang Philemon flanked by the Minister, Secretary General at the PM's Office, Louis Paul Motaze.