96879 PUBLIC-PRIVATE PARTNERSHIPS BRIEFS Cameroon: Dibamba Power Plant Overview In 2009, the Government of Cameroon awarded AES Dibamba Power Development Corporation (DPDC) the right to develop an 86 MW thermal energy Independent Power Plant (IPP). The Dibamba Project provides Cameroon with peaking and reserve capacity in electricity generation in order to meet the growing public sector and industrial demand for electricity. The project will help avoid load shedding during the dry season that typically lasts from January to June each year. IFC supported DPDC when it was an affiliate of AES Sonel, the privatized integrated elec- tric utility of Cameroon and an IFC investee company. In 2008, IFC extended a loan as part of a debt financing package provided by African Develpment Bank (AfDB), German Investment Corporation (DEG), European Investment Bank (EIB), Proparco, Central African Development Bank (BDEAC) and IFC, to AES Sonel for its five-year investment plan. Actis Energy Generation Holdings N.V. (Actis) of the Netherlands subsequently acquired AES Sonel’s assets in Cameroon. In 2014, MIGA supported the project by providing coverage to an equity investment by Globeleq Energy Holdings (Cameroon) B.V. (an Actis subsidiary) in DPDC against the risk of breach of contract. This series showcases how the World Bank Group supports the development and implementation of public-private partnerships. This support comes in the form of public sector loans, private sector finance, sector and transaction advice, guarantees, and output-based aid. PUBLIC-PRIVATE PARTNERSHIPS - MAY 2015 Background owned by Globeleq and 44 percent owned by the Government of Cameroon. ENEO Cameroon is Energy shortages and the high cost of electricity the sole off-taker of electricity produced by DPDC have slowed growth in Cameroon for the past 15 under a 20-year tolling agreement. The potential for years, with an estimated loss in GDP growth of 1 expansion or conversion of the facility to run on gas is to 2 percent each year. According to the World Bank’s currently being considered. 2007 Investment Climate Assessment, two-thirds of manufacturing firms cite power deficiencies as World Bank Group Role a constraint to doing business, leading to losses as high as 5 percent of production value on average. IFC and MIGA supported this project in the AES Sonel was awarded the right to develop an 88 following ways: MW heavy fuel-based thermal power plant on an • In 2007, IFC loaned €70 million ($95.9 million) as emergency basis to meet critical energy shortages. At the time, AES Sonel had a $127 million investment part of a €240 million ($328.9 million) debt-financ- plan for the project. 44 MW of the Dibamba ing package extended by a group of development plant started producing in August 2009, while the finance institutions comprising AfDB, DEG, EIB, remainder came online in 2011. By June 2014, Actis Proparco, BDEAC, and IFC. This loan was extended had taken over the existing assets of AES Corp. in to AES Sonel for a five-year comprehensive invest- Cameroon. Globeleq Africa, incorporated in 2012, ment plan in the energy sector of Cameroon, includ- is a power generation project developer and operator ing the Dibamba power plant. In 2011, IFC invested focusing on the emerging markets of Africa. It is a €22 million ($30.6 million) as part of a €66 million wholly owned subsidiary of Globeleq Energy Holdings ($91.9 millin) financing package extended by IFC, Limited, which is owned by Actis, a large emerging FMO, and AfDB to the €92 million ($128.1 million) markets private equity investor. Globeleq Africa Dibamba power project. currently operates five power projects (including • MIGA issued a guarantee of €23.3 million ($31.5 Kribi and Dibamba in Cameroon), with construction million) covering an investment by Globeleq Energy activities ongoing for three renewable projects in South Africa and the expansion of the Azito power Holdings in DPDC and DPDC’s future earnings. plant in Côte d’Ivoire. MIGA’s coverage is for a period of up to 20 years against the risk of breach of contract. Project Description Outcomes The project involves the acquisition, operation, and The investment will ensure continued operation of potential expansion of the 86 MW Dibamba heavy DPDC and boost its overall efficiency and reliability. fuel oil power plant. DPDC is now 56 percent Photo Credits Front: Paul Nickson/IFC. Back: Chirs Hunkeler/Creative Commons license, creativecommons.org/licenses/by-nc-nd/2.0/ worldbank.org/ppp @WBG_PPP scribd.com/wbg_ppp