CAMEROON RURAL ELECTRIFICATION

Promoter – Financial Intermediary

AGENCE DE L'ELECTRIFICATION RURALE

Location

• Cameroon

Description

The project consist of an investment programme financing the electrification across the country. For 700 villages this will be implemented through grid extension while for 30 villages through mini-grid systems.

Additionality and Impact

This loan and investment grant will finance an investment programme that is designed to contribute to the rollout of the 1st phase of the Rural Electrification Master Plan (REMP) for Cameroon and aimed at increasing access to electricity of rural communities. It is expected to have a transformational impact on rural electrification in selected underserved regions with low access rates, including the Extreme-North, North and Adamaoua regions. 

Enabling access to modern and reliable energy services to underserved communities the operation is strongly aligned with EU priorities in Cameroon (particularly this action contributes to the Cameroon Team Europe Initiative and flagship "Green and Resilient North" and towards the Global Gateway Initiative on Energy) as well as with Cameroon's Cameroon's strategic plan "Cameroon Vision 2035" and 'Growth and Employment Strategy'. The EIB's participation addresses several market failures, help to increase productivity, spur economic growth, and contribute to Cameroon's effort to reach universal access to electricity.

The favourable interest rate combined with EU grant, flexible terms offered by the EIB notably with disbursements, availability and grace periods mean the combined concessional financial and technical advice contributions of the EIB and the EU are vital for the implementation of the project.

Objectives

The project aims at increasing access to electricity of rural communities throughout several regions of Cameroon, which will benefit more than 1,600,000 people.

Comments

The grid extension component will include the construction of approximately 4,000 km of MV network, 3,600 km of LV and public lighting network, 870 MV/LV transformers and the reinforcement and extension of the existing HV/MV networks. The electrification via micro-grids will include the construction of 2 mini-hydro (total capacity 3 MW), 10 PV solar power plants (300 kW each), 120 km of MV network and 170 km of LV network. The Project supports the commitment made by the EU to be a global partner in promoting and implementing the 2030 Agenda and Sustainable Development Goals (SDGs). In particular, the Project supports SDG 1 on "Poverty Reduction", SDG 5 on "Gender Equality" by contributing to the empowerment of women, SDG 7 on ensuring access to "Affordable and Clean Energy" for all, and SDG 10 on "reduced inequalities" between the north and south of the country.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 59 million

Total cost (Approximate amount)

EUR 121 million

Environmental aspects

By enabling access to electricity supply, the project is expected to improve the living conditions for the beneficiary communities. It has however also the potential for some adverse environmental and social impacts. Environmental and social impact assessment studies have been/will be prepared as applicable and mitigating measures and compensations will be implemented as necessary.

Procurement

The project is in the public sector, subject to public procurement and required to comply with the provisions of the EIB Guide to Procurement.

Status

Signed - 29/12/2023