Africa50 announced on 4 December that it has acquired a 15% stake in the 420MW Nachtigal hydroelectric power project in Cameroon, with Stoa, an investment vehicle recently established by the Agence Française de Développement and Caisse des Dépôts, acquiring 10% of the International Finance Corporation’s (IFC) stake in the project (AE 381/5). The shareholders in Nachtigal, which will soon begin construction, are now EDF (40%), IFC (20%), the Cameroonian government (15%), Africa50 (15%) and Stoa (10%).
The €1.2bn ($1.4bn) project is expected to generate 2.9TWh/yr when it starts operating in 2023. It will supply the grid through a 35-year availability-based power purchase agreement with distribution utility Eneo and will connect to the Southern Interconnected Grid via a 50km transmission line to the Nyom II substation.
Africa50 director for project development Koffi Kousseh said, “Nachtigal will be the largest hydropower plant in Africa that is primarily funded with private capital. It will have a strong demonstration effect under the government’s sector reform process, paving the way for similar projects in the future. It is also a good example of how Africa50 can leverage its relationship with its shareholders and its financial resources to help speed up projects”.
To read a recent African Energy feature article on Nachtigal, please follow this link.
- Browse our subscription options.