AES SONEL-ELECTRICITY SUPPLY

Following the conclusion of the concession agreements in July 2001 and the subsequent privatisation, AES Sonel undertook immediate measures to expand the generation capacity, with the addition of 128MW in generation capacity.

AES Sonel is now seeking long-term finance for its 5 years capital expenditure programme. Major components of this programme include: (i) rehabilitation of thermal and hydro-generation facilities; (ii) erection and upgrading of transmission lines and HV stations; and (iii) upgrading and extension of distribution facilities.

Cameroon, has a population of approx 16.4m and covers an area of 475,000Km2. AES-Sonel is the national electricity utility and has an installed generation capacity of ~933MW, of which 77% is hydroelectric. Due to underinvestment and lack of maintenance in the system prior to AES SONEL's privatisation the system reliability, safety and access to electricity have all been poor, while demand continues to grow.

The objective of the project is to improve the utility's quality of service, to improve the system reliability, increase the electrification in the country and reduce commercial and technical losses.

The improvement of electricity supply will also help in stimulating economic growth in the country.

The Bank will verify during appraisal that appropriate environmental procedures will be followed and that adequate public consultation and appropriate mitigating measures will be implemented.

The components for finance by the Bank to be tendered internationally in line with the Bank’s rules, including publication in the OJEU. This will be verified during appraisal.

Infrastructure