Wednesday, March 14, 2012

Hydropower in Africa

Cameroon Signs $1bn Hydropower Project Deal

The Government of Cameroon and Joule Africa have entered into a memorandum of understanding for the development of the $1bn Kpep hydroelectric project in Cameroon.

The company said the project will increase the country's current installed power generation capacity by about 40% and would have an installed capacity of more than 450 MW when completed.

Located on the Katsina-Ala River in Menchum division, north of Bamenda, and near the Nigerian border, the Kpep hydroelectric project is expected to increase the power capacity, boosting economic development of the region.

Joule Africa will undertake the project with local partner Bethel Industrievertretung of Bamenda-Cameroon and European engineering firm, Lahmeyer International.

Lahmeyer International is recognised as one of the top hydro engineering firms in the world and has extensive experience designing hydroelectric projects in Africa.

Joule Africa is a member of the Joule Investments Group, a US-based developer, owner, and operator of hydroelectric power projects in emerging markets.

Demand for electricity in Cameroon is projected to triple over the coming decade, requiring about an estimated 3 GW of additional energy infrastructure by 2020.

 African Bank to Approve $100 Million for Hydro Power Plant in Ethiopia 

The African Development Bank is to approve 100 million US dollars to finance the construction of a new hydro power in Ethiopia, this September according to Lamin G. Barrow, Ethiopia Country Office Resident Representative of the African Bank.

The hydro electric power project will consist of two power plants with a total potential capacity of producing 371 MW (1680 GWH) annually.

It is expected that the project will cost more than 400 million US dollars with the African Bank financing a quarter of the projected cost and the remainder being co-financed from other financial institutions.
It is to be remembered that the African Development Bank is to approve a 231 million US dollar loan for the Ethiopia-Kenya power interconnection project said officials from the bank.  
The board of directors of the African Bank will be expected to appraise the project in the first quarter of the current financial before giving final approval according to Halima Hashi Ethiopian Country Program Officer for the AfDB.

The Ethio-Kenya power interconnection system is planned to provide a reliable power supply to Kenya from Ethiopian hydro electric power supplies.

The AFDB also gave a 234.5 million us dollar loan for the construction of roads in Ethiopia, linking the country to South Sudan and Kenya. The Bank made the loan to encourage trade relationships between Ethiopia and its neighbors.
The two roads to be financed by the African Bank are the Bedele-Metu road and the upgrade and construction on the Hawassa-Ageremariam road.

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