MIGA mulls 420 MW hydro project in Cameroon

Multilateral Investment Guarantee Agency (MIGA) is mulling providing a guarantee for EDF International’s 420 MW Nachtigal hydro project in Cameroon.

EDF International SAS has applied for a MIGA guarantee of up to US$205 million for 15 years against the risk of Breach of Contract.

The project consists of the development, construction and operation of a 420 MW run-of-the-river hydropower plant on the Sanaga River in the central region of Cameroon, about 65 kilometers north-east of Yaoundé.

The availability, reliability and cost of power supply remain important constraints to economic growth in Cameroon. Installed generation capacity of about 1,200 MW is insufficient to meet a demand growing at 7% p.a., and continues to outstrip supply (especially during the dry season) by 80-100 MW. Power outages are quite frequent at 160 hours annually.

The Nachtigal project will increase power supply to the national grid at a lower cost compared to other generation expansion options, and it is part of the updated least cost Electricity Sector Development Plan for 2015 – 2035 (PDSE 2035) which was approved by the Government of Cameroon in 2014.

We have recently reported about several hydro projects globally:

• 93.52 MW Buk Bijela hydropower plant - Bosnia and Herzegovina
• 20 MW Mucomir run-of-river plant in Loch Lochy - UK
• 515 MW hyropower plant in Poso, Central Sulawesi - Indonesia
• 250 MW Hatta hydroelectric project in Dubai - Saudi Arabia
• 120 MW Hydropower plant in Kalivac - Albania
• 424 MW Jaguara hydropower project in Rifaina - Brazil
• 408 MW Miranda hydropower plant in Minas Gerais - Brazil
• 380 MW Volta Grande hydropower project in Agua Comprida - Brazil
• 1,710 MW Sao Simao hydropower project in Goiás - Brazil