The European Investment Bank (EIB) has agreed to provide EUR29.5m in long-term funding to finance the new gas-fired, Kribi power plant in Cameroon.
The project includes a new 216MW natural gas power plant in southern Cameroon, a new 100km high voltage transmission line, new substations and transformers.
The power project provides a low-cost gas power solution to increase security of energy supply, when hydropower cannot be guaranteed.
The Kribi Power Development Company has been created by the Government of Cameroon and private sponsor, the AES Corporation, to implement the EUR263m project.
The power plant will run primarily on natural gas supplied from Cameroon's offshore Sanaga South gas field.
Furthermore, the country's national power utility AES-SONEL will purchase power from the Kribi plant.
The project is also expected to be funded by the IFC, African Development Bank, Netherlands Development Finance Company, Proparco and the Central African Development Bank.