On December 21, 2018, MIGA agreed to issue guarantees of up to €164.5 million (US$187.9 million) covering EDF and STOA’s equity and quasi-equity investments in the Nachtigal project. The guarantees are issued for up to 15 years against the risk of Breach of Contract.
The project consists of the development, construction and operation of a 420 megawatt (“MW”) run-of-the-river hydropower plant on the Sanaga River in the central region of Cameroon, about 65 kilometers (“km”) north-east of Yaoundé.
The project is categorized as A under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary.
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.
MIGA’s proposed support for this investment is aligned with the Agency’s strategic priority of supporting investments into countries eligible for concessional financing from the International Development Association.