AES Sonel

completed

The project is to finance a capital expenditure program to improve and expand the electricity generation, transmission and distribution system of AES Sonel, the recently privatized integrated electric utility in Cameroon. AES Sonel, currently supplies electricity to over 425,000 customers from both thermal and hydroelectric generating plants with installed capacity of 844 MWs by way of two independent transmission networks, Southern and Northern grids. The transmission system consist of 487.5 km of 225 kV, 1360.9 km of 90 kV and has 17 main substations. As part of this capital expenditure program AES Sonel has identified nine potential projects for the expansion of the transmission and generation facilities including: Bekoko-Nkongsamba transmission line upgrade, IPP access- transmission extension/upgrade, 80 MW Heavy-fuel oil- fired generating station at Limbé, Oyomabang Heavy-fuel oil conversion and extension project, natural gas-fired power plant, Edéa units 1-3 upgrades, new large or medium hydroelectric facility, Sanaga water storage construction and eastern hydroelectric – Colomines.The first of these projects to be designed is the 80 MW Heavy fuel-oil (HFO) fired generating station at Limbé. The Limbé Power Project (LPP) proposes to generate approximately 80 MW of power to cover the projected shortfall in electricity in the southern region of Cameroon. The works will consist of the:- installation of the heavy fuel oil power plant located in the SONARA oil refinery at Cape Limboh, near Limbe, south-west Cameroon; - 11.6 km of a new 90 kV single circuit overhead transmission line between the new power generation plant and the existing Limbe 90/30 kV substation, - construction of new high voltage (90 kV) substation located next to the new power generation plant, and - the extension of bays at the existing Limbe 90/30 kV substation so as to connect the 90 kV line to the grid.An Environmental Impact Assessment (EIA) for the 80 MW HFO has been prepared by an independent consultant (Black & Veatch) following the standards established by the Government of Cameroon, the World Bank Group and other international organizations. The EIA will be submitted by AES Sonel to environmental authorities for its approval and it will be locally disclosed to the communities for their review as well as in the web page of the World Bank Group.AES corporation is among the top US-based companies in terms of corporate wide spending on social responsibility projects. AES-Sonel supports a range of social and community development activities throughout Cameroon including helping to build and equip the Mbakaou Health Centre; sponsorship of local sports teams; equipping a secondary school, an orphanage, and a handicapped center; completion of important community electrification efforts abandoned by its predecessor. AES-Sonel has also made significant contributions in the area of HIV/AIDS treatment and prevention including support for the Cameroonian youth magazine (Jeune). AES-SONEL also has a program of support for staff who are HIV positive and their families that includes free treatment and counseling. AES-Sonel also provides a significant economic contribution through generation of local employment. AES-Sonel is committed to human resource training to support young qualified Cameroonians to join and advance in the company through support for Cameroonian University and other training programs. Likewise, AES-Sonel is committed to fair worker treatment if retrenchment is required, including voluntary retirement packages. As part of their corporate commitment to managing its businesses in a responsible, safe and sustainable manner such that protection of the environment and safety of people take priority, AES Sonel is in the process of developing an Environmental and Social Management Plan (ESMP) for each of its activities. The plan will provide a framework through which AES-Sonel’s businesses will develop and implement environmental, social, health and safety management systems and programmes. This will be developed following the guidelines established by the International Standards Organization’s guidance for Environmental and Social Management Systems (ISO 14001), as well as the policies and guidelines of the World Bank Group, the Government of Cameroon and the corporate objectives of AES-Sonel.The International Finance Corporation (IFC) a member of the World Bank Group as part of their review and procedures of projects will review the EIAs of each of the proposed potential projects.