Cameroon will receive a $132m loan from the World Bank to finance its Lom Pangar Hydropower Project which will improve the supply of electricity across the nation.
The project is expected to cost $494m, out of which $163m will come from the African Development Bank, the Central African States Development Bank, the European Investment Bank and the French Agency for Development and $199m will be provided by the government of Cameroon.
The immediate benefit for Cameroonians will be a 120MW increase in electricity generation at two existing hydropower plants which will improve the reliability of power supply for up to 5 million Cameroonians and help to lower the cost of power.
The project also includes financing for a 30MW power plant which will replace expensive thermal generation and provide reliable access to electricity in the eastern part of the country.
World Bank country director for Cameroon Gregor Binkert said the Lom Pangar project will help meet the immediate needs of the people of Cameroon and its national economy.
"The project will attract private investment in hydropower by industrial users which will sell part of the electricity they produce to boost the public grid, and help to improve power services for all Cameroonians," said Binkert.
The project will finance the Lom Pangar dam to store water during the rainy season and later release it during dry periods, to increase all-season hydropower generation capacity on the Sanaga River by 40%.