Loan to ENEO Cameroon: Renovated grids and power plants to improve service

ENEO Cameroon SA (formerly AES SONEL SA), the Cameroonian electricity company, was privatized in 2001. It is owned by the US group AES Corporation, a major international electricity player, and the Government of Cameroon. ENEO Cameroon serves 528,000 subscribers and sells 3,300 GWh of electricity a year. The capacity of its generation facilities stands at 933 MW, 75% of which is hydropower. ENEO Cameroon is one of the only power distribution, transmission and generation concessions in Africa.

Proparco’s loan will contribute to financing ENEO Cameroon’s investment program for 2005-2009. This program has a total cost of EUR 380m and is mainly based on the rehabilitation, renewal and expansion of power transmission and distribution grids, as well as the rehabilitation of existing hydropower plants.

This project will have significant impacts on the quality and expansion of the electricity service in Cameroon, by connecting 50,000 additional subscribers every year. Over 4 million people are expected to benefit from a connection or improved service. It will contribute to national efforts to develop an accessible and reliable electricity sector, which is a prerequisite for the economic development of the country.