Kribi

completed

KPDC is developing a new 216 MW reciprocating engine gas-fired thermal power plant, located near Mpolongwe village, about 9km north east of the coastal city of Kribi in the South Province of Cameroon, and a new 100 km 225 kV double circuit transmission line between the Kribi plant and the existing Mangombe 225/90 kV substation at Edéa in the Littoral Province.Perenco, in partnership with SNH, is developing an offshore Sanaga Sud gas field project (" Sanaga Sud gas project”) to supply natural gas to the Kribi 216 MW reciprocating engine gas-fired thermal power plant. The Sanaga Sud gas project includes drilling of two production gas wells offshore, development of an onshore 3 ha Central Processing Facility (“CPF”) to be located within a 25 ha site at Eboudawaé village, a 16 km offshore pipeline from the two wells to the CPF, and a 18 km pipeline from the CPF to the Kribi plant. These elements are collectively called the “Sanaga Sud gas facility” or “Sanaga Sud gas project”. KPDC will receive gas from SNH through a gas supply agreement. Although the Sanaga Sud gas facility is not funded as part of the Project, Kribi is expected to be the main gas off-taker, at least during initial years of operation, and reliable supply of gas is important for optimal operation of Kribi.The Kribi plant will use reciprocating engines with gas as main fuel and diesel as a back-up fuel. The 100 km 225 kV Kribi-Edéa transmission line corridor needs a 30m width for the right of way (“ROW”), 15m either side of the center of the power line. The transmission line towers to be built will be 26 to 40m in height, and will be built with average 350m spacing. IFC is considering providing up to Euros 35 million loan to KPDC. Other participating lenders are expected to include EIB, AfDB, BDEAC, Proparco, FMO and local Cameroonian banks. The Cameroonian banks expect to be supported by a partial risk guarantee (“PRG”) from the World Bank for the Kribi project. AES Sonel has currently 933 MW generating capacity, of which 721 MW is hydro and 212 MW is thermal. The new thermal power plants are expected to (i) help diversify the hydro-dominated generation capacity of the country, (ii) add additional generation capacity to meet the growing electricity demand by the residential, commercial and industrial customers, and (iii) increase the reliability of the electricity supply system, especially during the dry season, by optimizing the hydro generation. Out of the additional thermal generation capacity by the Project, up to 50 MW may be provided to Alucam, the single largest industrial electricity customer of the country, to support the expansion plan for their aluminum production. KPDC was established as Cameroon’s first independent power producer (“IPP”) to develop two thermal power plants. Electricity produced by KPDC will be sold to AES Sonel for distribution to customers through a power purchase agreement between the two for Kribi.