CAMEROON - Proposed Risk Participation of the Private Sector Credit Enhancement Facility in the Loan to Nachtigal Hydro Power Company

The proposed operation is an additional 6.15% risk share, or EUR 8 million of the EUR 130 million senior loan to Nachtigal Hydro Power Company (NHPC) for the construction of a new hydroelectric power plant in Cameroon. This additional support bringing the total risk share up to 35% and the maximum covered amount to EUR 45.5 million. The Nachtigal project consists of the design, construction and operation of a dam and hydroelectric plant on the Sanaga River. The run-of-river hydroelectric plant will generate 420 MW (equivalent to 7 x 60 MW generators) of electricity and will also have 225 kV high voltage lines covering a distance of 50 km from the project to the Nyom 2 substation, located north of Yaoundé. The project comprises a compacted concrete dam, 1,400 m wide and up to 14 m high, a 421 ha reservoir, a 3.3 km headrace canal, a hydroelectric power station with seven 60 MW turbines (for a combined capacity of 420 MW) and offices. The planned maximum flow from the power station will be 980 m3/s. The flow to the dam will be regulated upstream by the Mbakaou and Lom Pangar dams, with dry season flows of up to 650 m3/s. The project site is on the Sanaga River at Nachtigal approximately 65km north-east of Yaoundé.