Cameroon: Bank Group Supports Investment in Power Sector

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Tunis, 10 May 2006 – The African Development Fund (ADF), the concessional window of the African Development Bank (ADB) Group will support a project to improve electricity supply and network efficiency in Cameroon. The ADF Board today approved a loan of  UA49.65 million (equivalent to 60 million Euros) for the partial financing of  a five-year investment programme  by AES Sonel,  an integrated electric power utility in Cameroon.

The project will involve the rehabilitation and renovation of generating facilities, reinforcement and construction of high voltage lines and transformer stations, and the reinforcement and extension of the medium and low voltage grid. About 50,000 new customers will be connected to the grid per year and 1,549,852 subscribers by 2021.

The main components of the programme include: energy generation, energy transmission, energy distribution projects as well as projects to strengthen dams.

The total project cost is estimated at 380 million Euros. The ADF loan will finance 15.7% of the total investment and some recurrent costs.  AES Sonel will contribute 140 Million Euros (37%) and other lenders 135 Million Euros (35%) of the total costs.

The Bank Group's operations in Cameroon started in 1972. To date, the cumulative commitment of the ADB Group in the country amounts to about UA 650 million equivalent to 516 billion FCFA in 69 operations.

Project Information Sheet

- Sources of financing: ADF, AES Sonel’s, Government of Cameroon & beneficiaries

- Estimated start-up date and duration:  Sep. 2006 for 5 year

- Executing Agency: Department of Construction and Development (DCD) of AES Sonel assisted by the Electricity Sector regulatory Agency (ARSEL), Ministry of Mines, Water Resources and Energy

- Procurement of Goods and Services: The Equipment and the Consultants will be sourced through competitive bidding (ICB) basis in accordance with Bank Group Rules of Procedure.

*1 UA  (UC)  = EUR 1.17338= USD 1.47106 =FRANC CFA=780.845 as 10/05/06

The full text of the appraisal report is available in the bank’s website, in line with the Bank Group’s new policy on disclosure of information:

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Ocilaje Michael Phone: +216 71 10 3665