The Ministry of Water and Energy (MINEE), Hydromine, and Eneo Cameroon (ENEO) have signed a letter of intent to develop a 1-gigawatt hydropower project in Cameroon, central Africa, according to InfraPPP.
The letter of intent establishes the framework for the development of the Grand Eweng project, which will operate on a build, own, operate and transfer model. It also lays out the terms of the power purchase agreement between ENEO, a subsidiary of British investment group Actis and the country’s main electric company, and a planned project company, to be created.
ENEO has an installed generation capacity of 968 megawatts with a fleet of 39 generation power plants, including 13 grid power plants and 26 remote thermal plants, according to its website. Hydropower comprises 74 percent of ENEO’s power generation.
The Grand Eweng plant will be located on the Sanaga River between Yaounde and Douala in the eastern Littoral Region. Development will include a dam and reservoir, in addition to a hydroelectric facility.
American Independent power producer Hydromine was the original sponsor and developer of the projects. The company is developing the Grand Eweng project in cooperation with the government of Cameroon.
All three parties have agreed to finance the project over a series of phases and commence construction within three years. Electricity generation is scheduled to commence in seven years.
The state will assume ownership of Grand Eweng after the concession term ends.
Nationwide access to electricity in Cameroon is about 28.5 percent, with 10 percent of households in rural areas having access, according to The World Bank Group.
Phase one of the project will add about 1 gigawatt of capacity, generating 7,000 GWh of annual energy production. The full potential of installed capacity is expected to reach 1.8 gigawatts and produce an average of 9,000GWh annually, reported InfraPPP.
The project is one of the largest private sector–led power projects in sub-Saharan Africa.
