Cameroon, China deal to fund dam project

Written by BENEDICT J. NDINWA

Thursday, 07 January 2010 16:33

alumcan YAOUNDE-Cameroon and China signed a loan agreement Thursday for the financing of the construction of a hydroelectric power plant in the south of the country.

Cameroon has been hit by an energy crisis recently, with big industrial plant like aluminium smelter ALUCAM having to scale down production because of low power supply.

Demand for electricity has been growing at six to eight percent yearly. Last year authorities announced plans to triple the countries power output 1000MW to 3000MW by2020.

Construction work on the dam at the locality of Menking on the River Dja is planned to be completed in 36 months. The plant would have a capacity of 12MW. The dam will also be used for the production of some 500 tons of fish annually.

Part of the deal is the construction of a 20 km-stretch of road from Sangmelima to the dam site. Officials also expect the project to also boost agriculture in the region by providing irrigation water.

Economic Planning Minister, Louis Paul Motaze sealed the deal on behalf of the Cameroonian government, while the Chinese ambassador in Yaounde, Huang Chang Kin signed for his country.

Cameroon will pay back the CFA22 billion-loan by 2030, at an interest rate of 2%, Cameroonian and Chinese officials said.

The dam will be managed by the state-owned Electricity Development Corporation (EDC), through its subsidiary “Le Projet du Dja”, said Motaze. The government of Cameroon will hold majority shares in the venture.

The Menking hydro electric dam brings the number of multi-billion projects earmarked for the South region to 11 this year.

Projects lined for the region include the planned Kribi deep seaport, the Sangmelima referral hospital and the Sangmelima crafts and technical training centre.

A the national agro-pastoral show is billed for Ebolowa later this year while a cement factory at Mintomb, a railway line from Mbalam (East region) to Kribi and the tarring of Sanmelima-Mengong and Zoetele-Nkolyob roads are planned.

A sport complex will also be built at Meyomessala after the launching of the laying of at least 3200 km of fibre optic at Kye-ossi recently.

Thursday’s loan agreement came barely days after a similar one between both governments, aimed at constructing two 15,000-capacity stadiums in Limbe and Bafoussam.

The agreement also included potable water extension from the Mungo River to Douala and the building of another giant hydro-electric power plant at Lom Pangar in the East province.