Release date: 17 February 2006
Promoter – Financial Intermediary
AES Sonel
Avenue de Gaulle
PO Box 4077 Douala
Tel +237 342.5444
Location
Description
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.
Objectives
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.
Comments
Infrastructure
Sector(s)
Proposed EIB finance (Approximate amount)
Up to EUR 50 million.
Total cost (Approximate amount)
The cost of the total investment programme is estimated at EUR 380 million.
Environmental aspects
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.
Procurement
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.
Status
Signed - 8/12/2006
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).