- MULTILATERAL DEVELOPMENT BANKS’ COLLABORATION: INFRASTRUCTURE INVESTMENT PROJECT BRIEFS Cameroon: Kribi Power Plant Overview In 2009, the Government of Cameroon (GoC) awarded the Kribi Power Development Cor- poration (KPDC), a 20-year public-private partnership (PPP) to design, build, finance and operate the 216 MW Kribi natural gas-fired power plant, and associated transmission line. In 2012, the project received a financing package from the African Development Bank (AfDB), the European Investment Bank (EIB), the International Finance Corporation (IFC), the Netherlands Development Finance Company (FMO), the French Promotion and Invest- ment Company for Economic Cooperation (PROPARCO), and the Central African Develop- ment Bank (BDEAC). The World Bank provided a partial risk guarantee to facilitate Cam- eroon’s first long-term, local currency loan for infrastructure and in 2014, the Multilateral Investment Guarantee Agency (MIGA) extended a guarantee to Globeleq to cover various risks associated with an equity investment. This series showcases how the Multilateral Development Banks’ collaboration supports the development and implementation of infrastructure investment. This support comes in the form of public sector loans, private sector finance, sector and transaction advice, guarantees, and output-based aid. - MULTILATERAL DEVELOPMENT BANKS’ COLLABORATION: INFRASTRUCTURE INVESTMENT PROJECT BRIEFS - APRIL 2016 CameroonKribiPower_WBG_AfDB_EIB.indd 1 4/6/2016 3:31:16 PM Background together provide 61 percent of the project debt through parallel loans. Although Cameroon has a planned expansion of • In early 2012, IFC provided a loan of US$86 million hydropower capacity of 6000 MW, crucial projects were and acted as the lead arranger and global coordinator of not expected to be operational until after 2017. In this a US$182 million debt financing package to KPDC. context, Kribi provides a low-cost gas fueled option • The World Bank provided a partial risk guarantee to: to increase reliability. The Kribi Power Project began (i) allow local commercial banks to provide extended construction in 2010 and started supplying electricity tenors for their US$84 financing, (ii) backstop certain in March 2013. The project provides short-term relief obligations of the government under its commitment to the hydropower dependent country by providing agreement (including some termination and liquidity electricity to 163,000 households. As the second and agreements). This guarantee assisted in raising much largest IPP in Cameroon, it is considered an important needed local financing and helped deepen the domestic step towards diversifying power generation sources in the financial sector. country, while monetizing gas resources. • Later in 2014, MIGA issued a guarantee of $78.2 mil- lion supporting the equity investment made Actis Ener- Project Description gy Generation Holdings N.V. made through its subsid- The Kribi power project—the first power plant to run iary Globeleq Energy Holdings (Cameroon) in KPDC on natural gas in Cameroon—involves the development, for eight years for against the risks of transfer restriction, construction and operation of a new 216 MW natural war and civil disturbance, and breach of contract. gas-fired power plant located near the Mpolongwe village, nine kilometers north of the coastal city of Kribi Outcomes in South Province of Cameroon, and the construction By filling a temporary gap in power generation capacity of a new 100-kilometer 225-kilovolt double-circuit until Cameroon’s flagship hydropower projects go transmission line between the Kribi power plant and live around 2017, the Kribi power plant is providing the existing Mangombe 225/90-kV substation at short-term generation capacity and enabling the power Edéa in Littoral Province, including substations and generation diversification strategy of Cameroon. transformers. The pioneering project is the first gas-to-power PPP Natural gas is supplied from the offshore Sanaga being implemented in Cameroon and in the Central- South gas field in Cameroon all developed by Perenco African region, under a traditional project finance stru- Cameroon through an 18-kilometer onshore gas pipeline cture and its success will pave the way for the country to developed by the National Hydrocarbons Company make significant public investments as well as mobilize (SNH). Electricity generated from the project will be private sector investment. transmitted into Cameroon‘s Southern Interconnected Grid. For more information please contact: The project was implemented as a PPP between the World Bank Group: Nadine Ghannam government and KPDC (a special purposes vehicle set up Email: Nsghannam@worldbankgroup.org and owned by AES Corp. and the GoC), which is owned African Development Bank: John Phillips 44 and 56 percent by the government and AES Corp. Email: j.phillips@afdb.org (now owned by Globeleq Africa) respectively. AES Sonel European Investment Bank: Tim Smit (now ENEO) is the sole off-taker of the power produced. Email: t.smit@eib.org Multilateral Development Banks’ Role • The debt financing package was mobilized from the AfDB, the EIB, FMO, PROPARCO, and BDEAC that Photo Credits Front: Bilfinger/Creative Commons license, creativecommons.org/licenses/by-nd/2.0/ afdb.org @AFDB_Group eib.org @EIB ifc.org @IFC_org miga.org @MIGAWorldBank worldbank.org @WorldBank CameroonKribiPower_WBG_AfDB_EIB.indd 2 4/6/2016 3:31:16 PM