Name and Location
Dibamba oil-fired power plant, Douala, Cameroon.

Project Description
The project involves the construction of a 86 MW heavy fuel oil-fired, thermal power plant and an associated 2-km-long, 90 kV transmission line, at Yassa village, some 15 km from Douala, Cameroon’s industrial centre.

Initially, the facility will be oil-based; however, an interest rate reduction has been structured into the design of the long-term debt to encourage the plant’s conversion to gas at a later stage.

It will be connected to the Southern Interconnected Grid at the existing Ngodi-Bakoko transformer substation through the transmission line to ensure electricity supply to Cameroon’s most populated and industrialised parts.

Dibamba is Cameroon’s first independent power project and will serve as an emergency thermal power plant to avoid major load-shedding.

Value
The project cost is estimated at €92-million, to be financed on a debt-to-equity ratio of 75:25.

The International Finance Corporation (IFC) proposes to invest up to €22-million (no more than 25% of total project cost) in the project.Other participating lenders include the African Development Bank (AfDB) and the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO).

Duration
A timeframe has not been disclosed.

Client
AES Dibamba Power Development Company (DPDC), a joint venture between AES Corporation (56%) and the government of Cameroon (GoC) (44%).

AES DPDC is an affiliate of AES Sonel, a privatised national power utility of Cameroon. AES Sonel was privatised in 2001 when AES Corporation bought 56% of its shares.

AES Sonel holds generation, transmission and distribution assets in the whole country and operates under a 20-year concession agreement with the GoC.

Key Contracts and Suppliers
IFC, AfDB and FMO (loan finance).

Latest Developments
The IFC, a member of the World Bank group, together with the AfDB and the FMO will invest €66-million in DPDC for the latter to build the Dibamba power plant that will ensure reliable and consistent electricity supply and improve energy security in Cameroon.

All three financiers will each lend €22-million towards the €92-million project.

The facility is being developed to avoid imminent electricity shortages and avert an emergency power situation. It will also assist Cameroon to meet its growing energy demand, particularly during peak periods, and provide a much-needed thermal component to a largely hydro-based system, which has been inconsistent for years owing to poor rainfall in the country.

On Budget and on Time?
Not stated.

Contact Details for Project Information
AfDB, Nicol Houra-Onike, tel +216 71 10 3227 or email o.nicol@afdb.org.
Dibamba project subdirector Jeremie Bitanga, tel +237 34 43 4714, fax +237 34 42 2247 or email Jeremie.bitanga@aes.co.
FMO communications officer Eveline Schijf, tel +31 70 314 9924 or email e.schijf@fmo.nl.
IFC, Zibu Sibanda, tel +1 202 473 0605 or email zsibanda@ifc.org.