- MULTILATERAL DEVELOPMENT BANKS’ COLLABORATION: INFRASTRUCTURE INVESTMENT PROJECT 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. In 2008, AES Sonel received support by way of a €240 million debt-financing package extended by the African Development Bank (AfDB), the Central African Development Bank (BDEAC), the German Development and Investment Corporation (DEG), the International Finance Corporation (IFC), and PROPARCO. In 2014, the Multilateral Investment Guarantee Agency (MIGA) supported issued a guarantee of €23.3 million to cover the investment by Globeleq Energy Holdings in DPDC and DPDC’s future earnings. MIGA’s coverage is for a period of up to 20 years against the risk of breach of contract. 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 CameroonDibambaPowerPlant_WBG_AfDB.indd 1 4/6/2016 3:25:05 PM Background Multilateral Development Banks’ Role DPDC was first awarded to AES Sonel under AES Sonel received support from: Cameroon’s 1998 electricity laws to develop an 88 MW heavy-fuel based thermal power plant on an • A €240 million debt-financing package extended emergency basis to meet critical energy shortages. At by AfDB, BDEAC, DEG, IFC and PROPARCO. the time AES Sonel had a $127 million investment This loan was extended to AES Sonel for a five year plan for the project. 44MW of the Dibamba plant comprehensive investment plan in the energy sector started producing in August 2009 while the remainder of Cameroon including the Dibamba power plant. came online in 2011. By June 2014, Actis had taken • A 2014 MIGA guarantee, that provides coverage to over the existing assets of AES Corp. in Cameroon. an equity investment by Globeleq Energy Holdings Globeleq Africa, incorporated in Guernsey in 2012 (Cameroon) B.V. (an Actis subsidiary) in DPDC is a power generation project developer and operator against the risk of breach of contract. focusing in the emerging markets of Africa. It is a wholly owned subsidiary of Globeleq Energy Outcomes Holdings Limited, which is itself owned by Actis, a large emerging markets private equity investor. Energy shortages and the high cost of electricity have Globeleq Africa currently operates five power projects slowed growth in Cameroon for the past 15 years, (including Kribi and Dibamba in Cameroon), with with an estimated loss in GDP growth of one to two construction activities ongoing for three renewable percent each year. According to the World Bank’s projects in South Africa and the expansion of the 2007 Investment Climate Assessment, two thirds Azito power plant in Côte d’Ivoire. of manufacturing firms cite power deficiencies as a constraint to doing business, leading to losses as high Project Description as five percent of production value on average. The investment will ensure continued operation of DPDC The project involves the acquisition, operation, and boost its overall efficiency and reliability. and potential expansion of the 86-megawatt Dibamba heavy fuel oil power plant. Dibamba Power Development Corporation (DPDC) is now For more information please contact: owned 56 percent by Globeleq and 44 percent by World Bank Group: Nadine Ghannam the government of Cameroon. ENEO Cameroon is Email: Nsghannam@worldbankgroup.org the sole off-taker of electricity produced by DPDC African Development Bank: John Phillips under a 20-year tolling agreement. The potential for Email: j.phillips@afdb.org expansion or conversion of the facility to run on gas is currently being considered. Photo Credits Front: Paul Nickson/IFC. Back: Chirs Hunkeler/Creative Commons license, creativecommons.org/licenses/by-nc-nd/2.0/ afdb.org @AFDB_Group ifc.org @IFC_org miga.org @MIGAWorldBank worldbank.org @WorldBank CameroonDibambaPowerPlant_WBG_AfDB.indd 2 4/6/2016 3:25:09 PM