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AFRICAN DEVELOPMENT BANK GROUP
MULTINATIONAL
CAMEROON AND CHAD POWER INTERCONNECTION PROJECT
RDGC DEPARTMENT
November 2017
Translated Document
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TABLE OF CONTENTS
1. STRATEGIC THRUST AND RATIONALE ............................................................................................ 1
1.1. PROJECT LINKAGES WITH COUNTRY STRATEGY AND OBJECTIVES ........................................................ 1 1.2. RATIONALE FOR BANK’S INVOLVEMENT ............................................................................................... 1 1.3 AID COORDINATION ............................................................................................................................... 2
2. PROJECT DESCRIPTION ........................................................................................................................ 3
2.1. PROJECT OBJECTIVES AND COMPONENTS .............................................................................................. 3 2.2. TECHNICAL SOLUTIONS ADOPTED AND ALTERNATIVES EXPLORED ...................................................... 3 2.3. PROJECT TYPE ....................................................................................................................................... 4 2.4. PROJECT COST AND FINANCING ARRANGEMENTS ................................................................................. 4 2.5. PROJECT TARGET AREA AND BENEFICIARIES ........................................................................................ 6 2.6 PARTICIPATORY APPROACH ................................................................................................................... 7 2.7. BANK GROUP EXPERIENCE AND LESSONS REFLECTED IN PROJECT DESIGN .......................................... 8 2.8. KEY PERFORMANCE INDICATORS .......................................................................................................... 8
3. PROJECT FEASIBILITY .......................................................................................................................... 8
3.1. FINANCIAL AND ECONOMIC PERFORMANCE .......................................................................................... 8 3.2. ENVIRONMENTAL AND SOCIAL IMPACT ................................................................................................. 9
4. PROJECT IMPLEMENTATION ............................................................................................................ 12
4.1. IMPLEMENTATION ARRANGEMENTS .................................................................................................... 12 4.2. PROJECT MONITORING AND EVALUATION ........................................................................................... 15 4.3. GOVERNANCE ...................................................................................................................................... 15 4.4. SUSTAINABILITY .................................................................................................................................. 15 4.6. KNOWLEDGE BUILDING ....................................................................................................................... 16
5. LEGAL FRAMEWORK ........................................................................................................................... 17
5.1. LEGAL INSTRUMENT ............................................................................................................................ 17 5.2. CONDITIONS FOR BANK INTERVENTION ............................................................................................... 17 5.3. COMPLIANCE WITH BANK POLICIES ..................................................................................................... 18
6. RECOMMENDATION ............................................................................................................................. 18
ANNEXES
Annex I: Cameroon/Rationale for the Level of Government’s Counterpart Contribution to AfDB
Financing Annex II.1: Cameroon’s Comparative Socio-economic Indicator Annex II.2: Chad’s Comparative Socio-economic Indicators Annex III.1: Table of AfDB Portfolio in Cameroon as at 30 June 2017 Annex III.2: Table of AfDB Portfolio in Chad as at 30 June 2017 Annex IV.1: Similar Projects Financed by the Bank and other Development Partners of Cameroon Annex IV.2: Similar Projects Financed by the Bank and other Development Partners of Chad Annex V: Map of Project Area
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CURRENCY EQUIVALENTS
[October 2017]
UA 1 = CFAF 785.25
UA 1 = USD 1.4133
UA 1 = EUR 1.1971
FISCAL YEAR
1 January – 31 December
WEIGHTS AND MEASURES
m metre Koe kilo of oil equivalent
cm centimetre = 0.01 metre Ktoe kilo toe = 1 000 toe
mm millimetre = 0.001 metre kV kilovolt = 1 000 volts
km kilometre = 1 000 metres kVa kilovolt ampere (1 000 va)
m² square metre kW kilowatt = 1 000 watts
cm² square centimetre GW gigawatt (1 000 000 kw or 1 MW)
km² square kilometre = 1 000 000 square metres MW megawatt (1 000 000 w or 1 000 kw
ha hectare = 10 000 square metres kWh kilowatt hour (1 000 wh)
t (t) tonne (1 000 kilogrammes) MWh megawatt hour (1 000 kwh)
toe Tonne of oil equivalent GWh gigawatt hour (1 000 000 kwh)
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ACRONYMS AND ABBREVIATIONS
ADF African Development Fund
AER Rural Electrification Agency
AFD French Development Agency
AfDB African Development Bank
ARSEL Electricity Sector Regulatory Agency (Cameroon)
CAA “Caisse autonome d’amortissement”
CAPP Central Africa Power Pool
CFAF Franc of the “African Financial Community”
CSP Country Strategy Paper
ECCAS Economic Community of Central African States
ESIA Environmental and Social Impact Assessment
ESMP Environmental and Social Management Plan
EU European Union
FIRR Financial internal rate of return
GESP Growth and Employment Strategy Paper
HV High Voltage
IDP Internally Displaced Person
IsDB Islamic Development Bank
LV Low Voltage
MV Medium Voltage
PND National Development Plan
NEPAD New Partnership for Africa’s Development
PIU Project Implementation Unit
RAP Resettlement Action Plan
PDER Rural Electrification Masterplan
RISP Regional Integration Strategy Paper
SCP Stakeholders Commitment Plan
SNE National Electricity Corporation (Chad)
SONATREL National Electricity Transmission Corporation (Cameroon)
TFP Technical and Financial Partner
TSF Transition Support Facility
WB World Bank
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PROJECT INFORMATION SHEET
Client Information
Borrower/Donee Republic of Cameroun / Republic of Chad
Executing Agencies Cameroon: National Electricity Transmission Corporation (SONATREL)
Chad: National Electricity Corporation (SNE)
Financing Plan
Source of
Financing
Cameroon (million) Chad (million) Total (million) Instrument
EUR UA CFAF
x 1 000 EUR UA
CFAF x 1 000
EUR UA CFAF
x 1 000
ADB 217.91 182.03 142.94 0.00 217.91 182.03 142.94 Loan
ADF 7.18 6 4.71 0.00 7.18 6 4.71 Loan
TSF 0.00 0 32.92 27.5 21.59 32.92 27.5 21.59 Grant
IsDB 50.83 42.46 33.34 50.82 42.45 33.34 101.65 84.91 66.68 Loan
EU 0.00 0 20.00 16.71 13.12 20.00 16.71 13.12 Grant
Gvt. of
Cameroon 19.32 16.14 12.67 0 19.32 16.14 12.67
Counterpart
contribution
Gvt. of Chad 0.00 0 0 0.00 0 0.00 -
Total 295.24 246.63 193.67 103.74 86.66 68.05 398.98 333.29 261.72
Key AfDB Financing Information
Loan Currency: Euro (EUR)
Loan Type: Fully Flexible Loan
Tenor: 25 years
Grace Period: 8 years
Weighted Average Maturity**: Sixteen (16) years and nine (9) months
Repayment: Half-yearly instalments after expiry of the grace period
(thirty-four [34] equal and consecutive half-yearly
payments)
Interest Rate: Base Rate + Financing Margin + Loan Margin + Maturity
Bonus
Base Rate: Floating (six-month EURIBOR, reset on 1 February and 1
August). Floating base rate with a free fixing option.
Financing Margin: Bank financing margin, reset on 1 January and 1 July and
applied on 1 February and 1 August with the base rate.
Loan Margin: 80 basis points (0.8%)
Maturity Bonus: 0.20%
Front-end Fee: 0.25% of the loan amount payable on or before the date of
signature of the Loan Agreement
Commitment Fee: 0.25% per annum on the undisbursed loan amount,
commencing 60 days following the date of signature of the
Loan Agreement and payable on each interest payment date.
*Conversion options and related transaction costs shall be governed by the Bank’s Conversion Guidelines
available on the Bank’s website.
**A weighted average maturity calculator is available on the Bank’s website.
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Key ADF Financing Information – Mixed Country Lending Conditions
Loan/Grant Currency Unit of Account (UA)
Interest Rate 1%
Interest Rate Margin Not applicable
Service Charge 0.75% per annum on the disbursed and outstanding loan amount
Commitment Fee 0.5% on the undisbursed loan amount, commencing 120 days
after signature of Loan Agreement
Other Charges Not applicable
Tenor 25 years
Grace Period 5 years
Timeframe - Main Milestones (expected)
Activities (Month/Year)
Concept Note Approval October 2017
Project Approval December 2017
Signing of Loan/Grant Agreements March 2018
Effectiveness May 2018
Last Disbursement June 2022
Project Closure December 2022
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PROJECT SUMMARY
1. Project Overview
The Cameroon-Chad Power Interconnection Project stems from the desire of both countries to
optimize the use of their energy resources by integrating their power generation, transmission
and distribution infrastructure. It will involve the construction of: (i) a 225 kV high-voltage
(HV) main transmission line between Ngaoundéré and Maroua (Cameroon) and N’Djamena
(Chad); (ii) a 225 kV high-voltage link between Maroua (Cameroon), Bongor, Guelendeng and
N’Djamena (Chad); (iii) related high-voltage (HV)/medium-voltage (MV) transformer
stations; and (iv) rural electrification distribution networks along transmission line corridors.
In total, about 1 024 kilometres of HV transmission lines (786 kilometres in Cameroon and 238
kilometres in Chad) will be constructed and 478 localities along these lines (409 of them in
Cameroun and 69 in Chad) electrified. It is one of Central Africa’s priority integration projects.
The overall project objective is to improve the economic and social development framework
of Member States of the Economic Community of Central African States (ECCAS) through
the supply of adequate quantity and quality of electricity at low cost. The sector objective is to
increase the rate of access to electricity by the population of both countries, and strengthen
cooperation and regional integration in the sub-region through energy trade between the
countries. The total project cost, net of taxes, is estimated at UA 333.29 million (EUR 398.99
million). It will be implemented over a five-year (60-month) period, from 2018 to 2022.
The direct project beneficiaries are the National Electricity Corporation (Société Nationale de
l’Électricité, SNE) in Chad, the National Electricity Transmission Corporation (Société
Nationale de Transport d’Électricité, SONATREL), the Rural Electrification Agency (AER)
and the Cameroon Electricity Corporation (ENEO) in Cameroon, which will operate the
electricity transmission and distribution infrastructure constructed, as well as the population of
the localities along the interconnection lines built. The project will directly affect about 8.9
million people, 6.5 million of them in Cameroon and 2.4 million in Chad. Besides
interconnecting the power generation and transmission infrastructure of Cameroon and Chad,
thus significantly reducing the production costs of national electricity corporations, the project
will, through the electrification of the localities along the interconnection lines, help to increase
the electricity access rate in both countries, thus contributing to improving the living conditions
of the population and reducing poverty. The execution of works will create jobs, of which at
least 15% will be for women/girls. Lastly, it will enable industries in the countries concerned,
in particular, and the sub-region, in general, to develop and expand their commercial and
production activities. It will also promote the regional integration and economic development
of Central Africa.
2. Needs Assessment
Cameroon and Chad face major economic and social development difficulties resulting from
various constraints, including structural deficits and exorbitant energy costs. The electricity
access is about 67% in Cameroon and 3.9% in Chad. The project seeks to: (i) improve the
supply, reliability and accessibility of electricity in both countries through cross-border trade
in cheap and cleaner power; (ii) promote electricity trade and regional integration; and thus (iii)
contribute to Central Africa’s socio-economic transformation.
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3. Bank’s Value Added
In July 2003, the Bank approved an ADF grant to finance the Study on the Interconnection of
Power Networks of Member Countries of the Economic Community of Central African States
(EIRE-ECCAS). In October 2013, it also approved a UA 2.5 million ADF grant to finance
further studies on the Cameroon-Chad Section, which is the subject of this project. The Bank
then supported ECCAS and the Central Africa Power Pool (CAPP) to structure the project and
organize the Central Africa Power Sector Donors Round Table held on 17 June 2016 in
Brussels. During this round table, the Bank was designated as the leader of the technical and
financial partners (TFPs) of the Central Africa Power Sector and its intervention has helped to
mobilize other donors to finance the project. Thus, the Bank’s involvement in this investment
project will enable it to give effect to the development outcomes targeted by the study that it
pioneered.
4. Knowledge Management
To draw useful lessons from the project, a monitoring and evaluation system will be established
to document its outcomes and outputs. The lessons will be built on through: (i) project socio-
economic impact monitoring and evaluation reports; (ii) the evaluation of project socio-
economic impact by beneficiaries on project completion; and (iii) the progress reports of
project executing agencies in both countries. These project socio-economic impact monitoring
and evaluation reports will be posted on the Bank’s website and used to improve the
formulation of development policies and the design of similar future projects.
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RESULTS-BASED LOGICAL FRAMEWORK
Country and Project Name: Multinational Cameroon – Chad: Cameroon-Chad Power Interconnection Project
Project Goal: Improve the economic and social development framework of the countries by increasing the electricity access rate through cross-border trade in cheap and cleaner power.
RESULTS CHAIN
PERFORMANCE INDICATORS
MEANS OF VERIFICATION RISKS/MITIGATION
MEASURES Indicator
(including CSI) Baseline Situation (2017) Target (2022)
IMP
AC
T
Sustainable economic growth and
improvement of the living
conditions of the population of
both countries
1. GDP growth rate
2. Improved electricity
access rate
3. Drop in the average price
of electricity
1. Cameroon: 3.7%; Chad:
0.6%
2. Cameroon: 67%; Chad:
3.9%
3. Cameroon: CFAF 84.60/
kWh; Chad: CFAF 100/ kWh
1. Cameroon: 5.6%; Chad: 9%
2. Cameroon 75%; Chad: 8 %
3. Cameroon CFAF 79/ kWh; Chad:
CFAF 90/ kWh
Sources:
Chad’s PND (2017-2021);
GESP 2015-2025;
Cameroon: PDER;
Bank’s CSP; IMF reports
ECCAS and CEMAC statistics;
CAPP reports;
SNE, SONATREL and AER
progress reports.
Risk:
1. The main risk relates to the security
situation in Cameroon’s Far-North
Region, facing an influx of refugees fleeing terrorist attacks. Chad is also
grappling with terrorist incursions and
attacks in the same zone. This security situation may stretch the capacity to
implement the project to the limit. In
addition, the influx of refugees may increase social conflicts due to weak
social service delivery capacity. 2. Another risk facing the project is the
current weak capacity of the two
national entities that will be
responsible, each in its own sphere, for the various aspects of project
implementation. 1. Improvement in the supply of
and trade in electricity between both countries
2. Improvement of access to electricity by households in
rural areas
3. Reduction of greenhouse gas
emissions
1. Quantity of power traded
in GWh
2. Number of households connected
3. CO2 emissions avoided
(t/yr)
(0)
- Chad: 75 000 - Cameroon: 1 150 000
(0)
600 - Chad: 131 000, that is 56 000
additional households connected; - Cameroon: 1 444 000, that is 294
000 additional households connected [Total number of
additional households connected:
350 000]
227 291
Sources: SNE, SONATREL and AER progress reports;
Quarterly project reports; Bank supervision reports;
Reports of the ministries in charge of
women’s and youth empowerment
Mitigation Measures:
1. Concerted and coordinated actions in
the region against terrorist groups will help to mitigate the security risk. In
addition, the project will contribute to
enhancing the delivery of social services to the population.
2. The mitigation measures envisaged
concern: (i) the institutional support
that the project will provide to the executing agencies of both countries;
and (ii) the monitoring of the process of
recruiting experts for the agencies to guarantee the optimal performance by
the experts.
OU
TC
OM
ES
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OU
TP
UT
S
COMPONENT A
1. Construction of transmission
lines and implementation of the
Environmental and Social Management Plan (ESMP)
2. Construction of HV/MV
substations
3. Electrification of localities in
rural areas
COMPONENT B
4. Project supervision
5. Support for women’s and youth
empowerment (training, sensitization and provision of
production kits)
6. Integration of young graduates
7. Creation of permanent jobs
1. Number of kilometres of
HV transmission lines
constructed
2. Number of HV/MV
substations constructed 3. Number of localities
electrified
4. Number of project implementation and
supervision reports
5. Number of women’s and
youth groups supported in
Cameroon and in Chad
6. Number of youths who
have benefitted from pre-employment internships
7. Number of jobs created
1. 0
2. Idem
3. Idem
4. Idem
5. Idem
6. Idem
7. Idem
1. 1 024
2. 7
3. 478
4. 8 Bank supervision reports; 12 quarterly reports of the Consulting
Engineer; 1 completion report
5. 50 women’s groups (1 500 women) and 50 youth groups (1
500 youths aged between 15 to 35
years) in each country 6. 50 young graduates on internship,
at least 50% of them girls, in Chad
and 100 young graduates on internship, at least 50% of them
girls, in Cameroon.
7. 350 direct temporary jobs, at least 15% of them for women/girls; and
250 direct and indirect permanent
jobs, at least 40 of them for women/girls.
Sources:
SNE and SONATREL progress reports;
Consulting Engineer’s reports;
Bank supervision reports
KE
Y A
CT
IVIT
IES
COMPONENTS Component A: Infrastructure Development: (1) Construction of HV/MV networks; (2) Rural electrification works; and (3) Implementation
of the Environmental and Social Management Plan (ESMP).
Component B: Project Management: (1) Studies, works control and supervision; (2) Support in the form of office equipment and field technical equipment; (3) Training of women’s and youth groups; (4) Recruitment of young graduates; and (5) Project management activities.
Resources: UA 333.29 million
TSF Grant : UA 27.5 million
ADF Loan : UA 6 million
ADB Loan : UA 182.03 million
IsDB : UA 84.91 million
EU : UA 16.71 million
Government of Cameroon: UA 16.14 million Government of Chad : UA 0.00 million
Application of funds: UA 333.29 million
Component A : UA 257.74 million
Component B : UA 44.57 million
Contingencies : UA 30.98 million
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10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Contract award (ToR, consultation,
contract signature)
PROJECT IMPLEMENTATION SCHEDULE
ACTIVITIES2 017 2 018 2 019 2 020 2 021 2 022
Approval/Effectiveness
Project approval
Signature of financing agreements (grant
and loans)
Effectiveness of financing agreements
Fulfilment of disbursement conditions
Training of SNE and SONATREL staff
Consulting engineer
HV lines and substations - Cameroon
HV lines and substations - Chad
Rural electrification
Miscellaneous goods
Project Implementation
Implementation of the RAP
(Resettlement/Expropriation)Rural electrification supplementary
studiesConstruction of HV lines and substations -
CameroonConstruction of HV lines and substations -
ChadRural electrification
Completion Report
Borrowers' Report
ADB/ADF/TAF Report
Women's and Youth Socio-economic
Empowerment Programme
Project Supervision
Supervision missions
Project Audit
Recruitment of the auditor
Services of the auditor
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REPORT AND RECOMMENDATION OF MANAGEMENT TO THE BOARDS OF
DIRECTORS CONCERNING THE FINANCING OF THE CAMEROON-CHAD
POWER INTERCONNECTION PROJECT (PIRECT)
Management hereby submits the following report and recommendation concerning proposals to
grant (i) a EURO 217.91 million ADB loan and a UA 6 million ADF loan to the Republic of
Cameroon; and (ii) award a UA 27.5 million TSF grant to the Republic of Chad, to finance the
Cameroon-Chad Power Interconnection Project (PIRECT).
1. STRATEGIC THRUST AND RATIONALE
1.1. Project Linkages with Country Strategy and Objectives
1.1.1. The project is in line with energy sector policy and national programme orientations
of Cameroon and Chad, set forth in the letters of sector policies and development strategies of
the electricity sub-sector which place emphasis on the development and strengthening of
energy infrastructure in view of its contribution to improving access to basic social services,
reducing poverty, and promoting economic growth and regional integration.
1.1.2. In Chad, the project is in keeping with the National Development Plan (PND 2017-
2021) and is consistent with the priorities defined in the Country Strategy Paper (CSP 2015-
2020) through Pillar 1: “Develop Infrastructure for Strong and More Diversified Economic
Growth.”
1.1.3. In Cameroon, the project is consistent with the orientations of the CSP 2015-2020
through Pillar 1: “Strengthen Infrastructure for Inclusive and Sustainable Growth” and with
the priorities of the Growth and Employment Strategy Paper (GESP 2010-2020).
1.1.4. The project design is in line with the Bank’s Central Africa Regional Integration
Strategy Paper (RISP 2011-2017) through Pillar 1 on “Infrastructure Development”. The
project is also consistent with the overall framework of the Priority Integration Projects (PIPs)
envisaged by the Central Africa Power Pool (CAPP), which seek to interconnect the power
grids of ECCAS member countries. It will enable the countries of the sub-region to optimize
the use of their energy resources by integrating power infrastructure.
1.2. Rationale for Bank’s Involvement
1.2.1. The Bank’s involvement in this strategic project that has a regional structuring
character is justified by the fact that its implementation will contribute to achieving the
objectives of its Ten-Year Strategy (2013-2022) which aims, among other things, to strengthen
infrastructure financing in its regional member countries (RMCs) and to promote regional
integration. The project is a continuation of actions by the Bank, which approved a UA 2.5
million ADF grant in October 2013 to finance comprehensive studies on this project. The
Bank’s involvement in the investment project ensuing from the studies gives it value added.
1.2.2. The project is in line with four of the Bank’s High 5s, namely “Light up and Power
Africa”, “Industrialize Africa”, “Integrate Africa”, and “Improve the quality of life for the
people of Africa”. It is also in harmony with the Bank’s 2014-2019 Strategy, which aims to
address fragility and build resilience in Africa. The Bank considers that improving equitable
access to basic infrastructure services such as electricity helps to enhance the capacity of States
to provide basic services to the population, thus boosting confidence and social cohesion.
Cameroon and Chad are experiencing fragile situations due to their weak capacity to provide
basic services.
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1.2.3. The project is in keeping with the priorities of the CSPs of both countries, Cameroon’s
Growth and Employment Strategy Paper (GESP) 2010-2020 and Chad’s National
Development Plan (PND) 2017-2021, whose main pillars are infrastructure development and
strengthening. The Bank also took part in the Donors Round Table on Chad held in Paris last
September, which mobilized pledges of substantial financing from major TFPs, including the
Bank, for the implementation of the PND. In addition, the Bank is considered in the sub-region
as a strategic partner in the energy sector, thanks to previous and current operations in the
sector. Besides supporting the implementation of energy projects at the national level, the Bank
plays a key role in financing multinational projects in Central Africa. For example, during the
Central Africa Energy Sector Donors Round Table (held on 17 June 2016 in Brussels), the
Bank was selected as the leader of the technical and financial partners (TFPs) of the Central
Africa Energy Sector. This project will help to sustainably strengthen the achievements of
previous projects.
1.3 Aid Coordination
1.3.1 In Cameroon, the Ministry of Economy, Planning and Regional Development
(MINEPAT) is in charge of aid coordination and cooperation with donors at the national level.
Its Directorate of Regional Integration (DIR) is the Bank’s focal point for aid coordination. The
technical and financial partners have set up the Multi-Partner Committee (MPC) for GESP
Monitoring, which is a platform for dialogue and discussions on all key development issues in
Cameroon. Technical and thematic sub-committees for the alignment and harmonization
agenda have been set up to support this entity. The Energy Sector Sub-committee is steered by
the World Bank, with AfDB support.
1.3.2 In Chad, the Ministry of Economy and Development Planning (MEPD) is charged
with coordinating donor interventions, in concert with the Technical and Financial Partners
Committee (TFPC). This Committee comprises the Bank, the International Monetary Fund
(IMF, the current chair), the European Union (EU), the World Bank (WB), the Development
Bank of Central African States (BDEAC), the United Nations system organizations, the French
Development Agency (AFD), the Islamic Development Bank (IsDB), Chinese Cooperation,
Swiss Cooperation, and Arab Funds.
1.3.3 At the regional level, the Economic Community of Central African States (ECCAS)
and the Central Africa Energy Pool (CAPP) coordinate donor actions, the mobilization of
financing and the implementation of multinational projects in the energy sector. It is also
important to mention the Bank’s role as leader of the Technical and Financial Partners (TFPs)
of the Energy Sector in Central Africa.
1.3.4 During project identification, preparation and appraisal missions, the Bank team held
discussions with these key TFPs, notably the IsDB and the EU both of which will participate
in project financing. This coordination will be continued during project implementation: (i)
through the coordination of meetings of TFPs operating in the energy sector by the Cameroon
and Chad Country Offices; and (ii) during various project supervision missions.
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2. PROJECT DESCRIPTION
2.1. Project Objectives and Components
The project objective is to improve the supply, reliability and accessibility of electricity in
Cameroon and Chad. Specifically, it seeks to: (i) enable cross-border trade in cheap and cleaner
electricity; (ii) promote electricity trade and regional integration; and (iii) contribute to Central
Africa’s socio-economic transformation. The table below presents the project components and
costs.
Table 2.1: Project Components and Estimated Cost
No. Component Name
Estimated Cost
(UA million) Component Description
A. Power Infrastructure 257.74
A.1 HV Lines and Substations 204.06 Construction of HV interconnection lines, including environmental and social costs (Cameroon: 785.9 kilometres and
Chad: 238.1 kilometres)
Construction and extension HV/MV substations (Cameroon: 4 substations and Chad: 3 substations)
A.2 Rural Electrification 53.68 Rural electrification (Cameroon: 409 localities; 1 610 kilometres of MV networks and 368 MV/LV substations and Chad: 69
localities; 470 kilometres of MV networks and 58 MV/LV substations)
B. Project Management 44.57 B. 1 Project technical and financial audit
B.2 Environmental and social audit
B. 3 Procedures manual B. 4 Procurement and installation of management software
(accounting and project management) and training
B. 5 Monitoring of project activities - Study monitoring and supervision, manufacturing and
construction of infrastructure (Consulting Engineer)
- Implementation of the ESMP (HV lines) - Implementation of the RAP (HV lines)
- Implementation of the ESMP (Rural Electrification)
- Logistic support to national institutions B. 7 Integration of young graduates
B. 8 Institutional support CHAD (particularly MPE and the SNE)
B. 9 Institutional support CAMEROON (particularly MINEE,
ARSEL, SONATREL and AER)
B. 10 Youth and Women’s Empowerment Programme B. 11 Support for the operation of PIUs
TOTAL BASE COST 302.31
Contingencies (10%) 30.98
TOTAL PROJECT COST 333.29
2.2. Technical Solutions Adopted and Alternatives Explored
2.2.1. The Cameroon-Chad Power Interconnection Project falls within the general
framework for interconnection of the power grids of ECCAS member countries. A 2010
Bank-funded study conducted by ECCAS identified the Cameroon-Chad power
interconnection (via a 225 kV high-voltage transmission line from Maroua to N’Djamena) as
one of the priority regional interconnection projects. However, to enhance project impacts,
additional studies, also still financed by the Bank, were carried out in 2016 to strengthen the
consistency of the Cameroon-Chad Power Interconnection Project by including a 225 kV
Maroua (Cameroon)-Bongor-Guelendeng-N’Djamena (Chad) link, as well as a rural
electrification component along transmission line corridors. The selection of the 225 kV line
option is justified by the need to transport power between Central African countries over long
distances.
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2.2.2. In the short term, hydropower for the grid interconnection will be generated by the
new Bini à Warak hydropower plant (75 MW) under construction and the existing Lagdo
hydropower plant (72 MW) in Cameroon. In the medium term, the interconnection line will
have access to a greater hydropower capacity, in view of the envisaged link between the
Northern Interconnected Grid (RIS) and the Southern Unconnected Grid (RIN) in Cameroon
given that the southern part of Cameroon has a considerable hydropower potential. For its
part, the Chadian Government is pursuing the development of power generation through: (i)
the exploitation of oil resources, which will provide opportunities for the use of fuel oil (heavy
and light) for power generation in the medium term; and (ii) the development of renewable
energy such as the construction of the Djermaya solar power plant for which Bank financing
is solicited.
Table 2.2: Alternatives Explored and Reasons for their Rejection
Alternative Brief Description Reason for Rejection
Continue to develop national
power systems (with low voltages using thermal generation)
Each country will, using its own energy
generation facilities, continue to address the ever-growing national energy demand using
thermal generation sources (costly) particularly
in Chad and in the northern part of Cameroon.
Very high average per kWh cost
Inadequate security of energy supply
High pollution as power will be largely (for Chad) and partly (for Cameroon) generated from
petroleum products.
2.3. Project Type
This project is an investment operation in the form of loans and grants awarded to the two
countries concerned.
2.4. Project Cost and Financing Arrangements
2.4.1. The total project cost, net of taxes and customs duties, is UA 333.29 million, of which
UA 299.96 million in foreign exchange and UA 33.33 million in local currency. It comprises
a 5% provision for physical contingencies and a 5% provision for price escalation for costs in
foreign exchange and in local currency. The project cost by component and by currency type
is presented in Table 2.3 below.
Table 2.3: Estimated Project Cost by Component (UA million)
Components Foreign Exchange Local Currency Total % Foreign Exchange
1. Works 231.97 25.77 257.74 90%
2. Project Management 40.11 4.46 44.57 70%
Base Cost 272.08 30.23 302.31 90%
Provision for Physical Contingencies 13.60 1.51 15.12 90%
Provision for Price Escalation 14.28 1.59 15.87 90%
Total Project Cost 299.96 33.33 333.29 90%
2.4.2. The Bank Group’s overall contribution will be made through the “public” (ADB, ADF
and TSF) windows as follows: a UA 27.5 million TSF grant [UA 11 million (country
allocation) and UA 16.5 million (regional allocation)] to Chad, and a EUR 217.9 million ADB
loan (UA 182.03 million) and a UA 6 million ADF loan [UA 3 million (country allocation) and
UA 3 million (regional allocation)] to Cameroon. The Islamic Development Bank (IsDB) will
provide a total financing of USD 120 million (approximately UA 84.91 million) shared
equitably between Cameroon and Chad. For its part, the European Union (EU) will provide
EUR 20 million, or about UA 16.14 million to Chad. The project cost by source of financing
and by expenditure category is presented in Tables 2.4, 2.5.1 and 2.5.2 below. The detailed
component cost by source of financing and by procurement method is presented in Technical
Annexes B2 and B5.
5
Table 2.4: Sources of Financing (UA million)
Sources of Financing
CAMEROON CHAD CAMEROON + CHAD
F.E. L.C Total %
Total F.E. L.C Total
%
Total F.E. L.C Total
%
Total
ADB loan 161.36 20.67 182.03 74% 0 0% 161.36 20.67 182.03 55%
ADF Loan 4.60 1.41 6.00 2% 0 0% 4.60 1.41 6.00 2%
TSF Grant 0 0% 21.42
6.08 27.50 32% 21.42 6.08 27.50 8%
IsDB 38.21 4.25 42.46 17% 38.21
4.25 42.45 49% 76.42 8.49 84.91 25%
European Union 0 0% 15.04
1.67 16.71 19% 15.04 1.67 16.71 5%
Government of Cameroon1 11.30 4.84 16.14 7% 0% 11.30 4.84 16.14 5%
Government of Chad2 0 0% 0% 0.00 0.00 0.00 0%
TOTAL 215.47 31.16
246.63 100% 74.67 11.99 86.66 100% 290.14 43.16 333.29 100%
Table 2.5.1: Project Cost by Expenditure Category (UA million)
Expenditure Category F.E. L.C. Total % F.E.
Works 231.97 25.77 257.74 90%
Goods 1.33 0.57 1.90 70%
Services 11.83 5.07 16.90 70%
Sundry 18.04 7.73 25.77 70%
Total Base Cost 263.16 39.14 302.31 87%
Provision for Physical Contingencies 13.16 1.96 15.12 87%
Provision for Price Escalation 13.82 2.06 15.87 87%
Total Project Cost 290.14 43.16 333.29 87%
Table 2.5.2: Project Cost by Expenditure Category and by Source of Financing (UA million)
Expenditure
Category
AfDB ADF TSF IsDB EU Gvt. of
Cameroon Gvt. Chad Total
F.E. L.C Total F.E. L.C Total F.E. L.C Total F.E. L.C Total F.E. L.C Total F.E. L.C Total F.E. L.C Total
Works 138.53 15.39 153.92 1.62 0.18 1.80 8.87 0.99 9.85 69.32 7.70 77.02 13.64 1.52 15.16 0.00 0.00 0.00 0.00 0.00 0.00 257.74
Goods 0.00 0.00 0.00 0.53 0.23 0.76 0.79 0.34 1.14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.90
Services 7.83 3.36 11.19 1.04 0.45 1.49 2.95 1.27 4.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16.90
Sundry 0.00 0.00 0.00 0.98 0.42 1.40 6.81 2.92 9.73 0.00 0.00 0.00 0.00 0.00 0.00 10.25 4.39 14.64 0.00 0.00 0.00 25.77
Total Base Cost 146.36 18.75 165.11 4.17 1.27 5.45 19.43 5.51 24.94 69.32 7.70 77.02 13.64 1.52 15.16 10.25 4.39 14.64 0.00 0.00 0.00 302.30
Provision for
Physical
Contingencies
7.32 0.94 8.26 0.21 0.06 0.27 0.97 0.28 1.25 3.47 0.39 3.85 0.68 0.08 0.76 0.51 0.22 0.73 0.00 0.00 0.00 15.12
Provision for
Price Escalation 7.68 0.98 8.67 0.22 0.07 0.29 1.02 0.29 1.31 3.64 0.40 4.04 0.72 0.08 0.80 0.54 0.23 0.77 0.00 0.00 0.00 15.87
Total Project
Cost 161.36 20.67 182.03 4.60 1.41 6.00 21.42 6.08 27.50 76.42 8.49 84.91 15.04 1.67 16.71 11.30 4.84 16.14 0.00 0.00 0.00 333.29
Table 2.5.3: Project Cost by Component and by Source of Financing
PROJECT COMPONENT
TOTAL
COST
AfDB Group Financing IsDB EU CAM CHAD
AfDB/CAM ADF/CAM TSF/CHAD
(UAM) (EURM) (UAM) (UAM) (UAM) (UAM) (UAM) (UAM) (UAM)
A. POWER
INFRASTRUCTURE 257.74 184.25 153.92 1.80 9.85 77.02 15.16 - -
Construction of HV
Interconnection Lines 151.11 146.42 122.31 - - 28.80 - - -
Construction and Extension
of HV/MV Substations 52.95 37.83 31.60 - - 9.71 11.64 - -
Rural Electrification 53.68 0.00 - 1.80 9.85 38.51 3.52 - -
B. PROJECT
MANAGEMENT 44.57 13.394 11.19 3.65 15.09 - - 14.64 -
Project Technical and
Financial Audit 0.06 - - 0.03 0.03 - - - -
Environmental and Social
Audit 0.06 - - 0.03 0.03 - - - -
Procedures Manual 0.01 - - - 0.01 - - - -
1 The rationale for the level of counterpart contribution is given in Annex 1. 2 The constraints related to Chad’s budgetary situation owing to the exogenous shock caused by fluctuating oil prices and the heavy dependence of its
economy on this resource have led to the inability of this Category 1 fragile country to pay its counterpart contribution to the project implementation cost. The analysis of the mainstreaming of fragility aspects into the project is presented in the technical annexes (Annex B. 9).
6
Procurement and Installation
of Management Software
(accounting and project
management) and Training
0.05 - - 0.01 0.04 - - - -
Study Monitoring and
Supervision, Manufacturing and Construction of
Infrastructure (Consulting
Engineer)
16.21 13.39 11.19 1.25 3.77 - - - -
ESMP Implementation (HV
Network) 2.23 0.000 - - 0.96 - - 1.28 -
ESMP Implementation (Rural
Electrification) 1.64 0 - - 0.74 - - 0.90 -
RAP Implementation
(Resettlement/Expropriation) 17.98 - - 5.52 - - 12.46 -
Trainees (young graduates) 0.06 - - 0.03 0.03 - - - -
Institutional Support CHAD 0.40 0.000 - - 0.40 - - - -
Institutional Support CAMEROON
0.32 0.00 - 0.32 - - - - -
Support to PIUs: SNE (Chad)
and SONATREL (Cameroon) 3.36 0.00 - 1.11 2.25 - - - -
Support to CAPP 0.66 0.000 - 0.34 0.32 - - - -
Youth and Women’s Socio-
economic Empowerment
Programme
1.52 0.000 - 0.53 0.99 - - - -
BASE COST 302.31 197.65 165.11 5.45 24.94 77.02 15.16 14.64 -
Provision for Physical
Contingencies (5%) 15.12 9.88 8.26 0.27 1.25 3.85 0.76 0.73 -
Provision for Price Escalation
(5%) 15.87 10.38 8.67 0.29 1.31 4.04 0.80 0.77 -
TOTAL COST 333.29 217.91 182.03 6.00 27.50 84.91 16.71 16.14 -
Table 2.6: Expenditure Schedule by Component (UA million)
Components 2 018 2 019 2 020 2 021 2 022 Total
1. Works 56.83 85.25 85.25 28.42 28.42 284.16
2. Project Management 14.74 12.28 9.83 7.37 4.91 49.13
Total 71.57 97.53 95.07 35.79 33.33 333.29
2.5. Project Target Area and Beneficiaries
Project Impact Area
2.5.1. In Chad, the project impact area comprises 9 cantons in 4 divisions (“départements”)
and 3 regions, namely: (i) Mayo-Kebbi Est, which had a population of about 775 000 in 2009
(representing 7% of the total population of Chad), (ii) Chari-Baguirmi, which had about
580 000 inhabitants in 2009 (that is 5% of the country’s total population), and (iii) N’Djamena,
which had a population of close to 1 million in 2009 (or 9 % of Chad’s population), representing
a total population of 2 355 000. At the country level, the incidence of poverty is relatively low
in N’Djamena and Mayo-Kebbi East Regions, and moderate in the Chari-Baguirmi Region.
2.5.2. In Cameroon, the project impact area covers 30 counties (“communes”) in 8 divisions
(“départements”) and 3 regions, namely: (i) the Adamaoua Region, which had a population of
more than 1 million in 2010 (or 5% of the total population of Cameroon); (ii) the North Region,
which had more than 2 million people in 2010 (representing 11% of the country’s total
population); and (iii) the Far-North Region, which had close to 3.5 million inhabitants in 2010
(that is 18% of Cameroon’s population), bringing the total to 6.5 million. The project area is
characterized by extreme poverty, particularly in rural areas.
7
Project Beneficiaries
2.5.3. The power transmission and distribution infrastructure will directly benefit the SNE
in Chad, and SONATREL, AER and ENEO in Cameroon, which will operate it. In Chad, the
project will significantly contribute to improving the financial and economic viability of the
SNE. The replacement of thermal power with hydropower will lead to a substantial drop in
production cost, which currently stands at CFAF 240/kWh against an average tariff of CFAF
100/kWh. Therefore, the project could contribute to reducing State subsidies to the SNE and
cutting tariffs by about 10%. These benefits will be strengthened as the development plans of
the SNE, SONATREL, AER and ENEO are implemented, but also as the projects to reinforce
and extend the N’Djamena power network being prepared together with the French
Development Agency (AFD), Banque Sahelo-Saharienne pour l’Industrie et le Commerce
[Sahel-Saharan Bank for Industry and Commerce (BSIC)] and Chinese Cooperation are
implemented.
2.5.4. The project will allow for the electrification of 478 villages, 409 of them in Cameroon
and 69 in Chad, and will benefit 350 000 households that will have access to electricity and
thus improve their living conditions. The execution of works will create no fewer than 350
temporary jobs, at least 15% of them for women/girls and about 250 permanent direct and
indirect jobs, at least 15% of them for women/girls. Regarding socio-professional integration,
about 150 young graduates, at least 50% of them girls (50 in Chad and 100 in Cameroon) will
be able to undertake pre-employment internships to enhance their employability. Regionally,
in each country, the project will enable the industries of the respective regions to develop and
increase their production and commercial activities, in addition to improving their
competitiveness. It will also promote regional integration and the economic development of
Central Africa.
2.6 Participatory Approach
2.6.1. Consultations were conducted as part of project design and the preparation of ESIAs
and FRPs in Cameroon and in Chad, in compliance with domestic legislation and the
requirements of AfDB’s Operational Safeguards 1 and 2. Consultations were conducted
publicly (in the regions crossed by the project) and individually with PAPs. Overall, the
population expressed concern about the following main aspects: (i) the right-of-way of the new
line; (ii) the project implementation period; (iii) the identification of persons likely to be
affected and the time when compensation will be paid to them; (iv) the terms and conditions
for compensating for affected property (buildings, crops, land, etc.); (v) project benefits for
villages not electrified; and (vi) the specific needs of women. The main fears expressed by the
PAPs consulted individually concerned the terms and conditions for compensation and
resettlement. The expectations expressed during public consultations and by the PAPs
consulted individually are quite similar. All the people consulted expect positive impacts from
rural electrification.
2.6.2. In Chad and in Cameroon, this participatory approach will be maintained and
reinforced during the project implementation phase through a regional Stakeholder
Engagement Plan (SEP). This SEP will be implemented by the Project Implementation Unit
(PIU) in close collaboration with project-impacted communities, local authorities and
authorities of decentralized and external institutions. It will help to establish a social peace and
transparency drive and will consist in: (i) operationalizing the system for recording and
processing complaints and grievances as well as a mechanism for managing grievances by
providing all stakeholders or citizens with the possibility of making their comments, voicing
their concerns, acceding to information and, where necessary, lodging an appeal and seeking
8
redress under the redress mechanism. The Bank posted the summary of the ESIA and FRP on
its website on 11 August 2017.
2.7. Bank Group Experience and Lessons Reflected in Project Design
2.7.1. The recent review of the Bank’s portfolio performance in the two countries concerned
and the Bank’s portfolio in the Central African Region revealed the following main weaknesses
in project implementation: (a) poor quality at entry due to lack of technical studies and poor
cost estimates; (b) relatively long timeframes for effectiveness and fulfilment of conditions
precedent to first disbursement; (c) weak capacity of executing agencies; and (d) project start-
up delays.
2.7.2. The proposed project takes into account lessons drawn during the implementation of
national and multinational projects, particularly: (i) the coordination of regional operations
(with regard to the Study on the Cameroon-Chad Power Interconnection Project); (ii) quality
at entry (particularly in relation to the Lom Pangar Hydropower Project – PAHLP – in
Cameroon); and (iii) delays in the launching of works, the financing of compensation, the
mobilization of counterpart contributions, and procurement and financial management
provisions (in relation to the Lom Pangar Hydropower Project and the Project to Strengthen
and Extend Electricity Transmission and Distribution Networks – PRERETD – in Cameroon).
2.7.3. To overcome these weaknesses and reflect the lessons learned, this project will: (i)
establish a decentralized management entity to ensure better project ownership by beneficiaries
and stakeholders; (ii) build the capacity of PIUs; (iii) use advance contracting to reduce
procurement timeframes; and (iv) simplify conditions of compensation payment. Furthermore,
the project is underpinned by recent comprehensive studies (preliminary design study, ESIA,
RAP, ESMP and BDs).
2.8. Key Performance Indicators
Project performance will be measured using the performance indicators outlined in the results-
based logical framework. The key project performance indicators are: (i) the quantity of power
traded through the power interconnection; (ii) the electricity access rate in the rural areas
covered; (iii) the CO2 emissions avoided; and (iv) the number of direct and indirect jobs
created. The main project outputs in 2022 will be: (i) the construction of 1 024 kilometres of
225 kV power transmission lines; (ii) the construction of 7 HV/MV substations; and (iii) the
electrification of 478 localities along the power transmission lines. The project performance
indicators will be included in the periodic project progress reports to be prepared by PIUs. As
the project is implemented, these indicators will be analysed and compared with the project
target values, and regional and international standards.
3. PROJECT FEASIBILITY
3.1. Financial and Economic Performance
3.1.1. Key Financial and Economic Performance Indicators
Table 3.1: Key Project Financial and Economic Performance Indicators
Baseline scenario
FIRR: 23.6 % FNPV: CFAF 184 million
ERR: 43 % ENPV: CFAF 448 million
NB: The detailed assumptions and calculations are presented in Technical Annex B.6
9
3.1.2. Financial performance: the financial internal rate of return (FIRR) and the net
present value (NPV) were calculated based on the cost-benefit method for the construction and
operation of the power interconnection infrastructure. The financial benefits taken into account
are revenue from the transmission of power through the transmission line and the share of
earnings from the sale of power imported by Chad from Cameroon, thus replacing thermal
power with hydropower, attributable to the line. The project cost includes investments in
infrastructure and operation and maintenance costs estimated at 2% of the investment cost. The
analysis covers a 30-year period corresponding to a 4-year project implementation period and
a 26-year project infrastructure operation period.
3.1.3. Economic performance: the economic costs used to calculate the economic rate of
return (ERR) and the economic net present value (ENPV) are project investment costs net of
taxes and provision for price escalation, deflated by appropriate conversion factors for
equipment, works, services and labour. Maintenance and operating costs were also estimated
at 2% of the investment cost. Other economic benefits are presented in the technical annexes
(see B.6).
3.1.4. Sensitivity analysis: the analysis of results of sensitivity tests shows that the project
can resist: (i) a 10% increase in project costs; (ii) a 10% increase in operating costs; and (iii) a
10% drop in electricity rates. The FIRR are 22%, 24% and 19%, respectively. Therefore, the
project is more sensitive to a decrease in sales that could result from: (a) a drop in electricity
rates; or (b) a decline in household consumption. Regarding the latter assumption, it is
necessary to adopt a shrewd connection policy, particularly for the “rural electrification”
component.
3.2. Environmental and Social Impact
Environment
3.2.1. The project has been classified under Category 1 in accordance with the Bank’s
Environmental and Social Assessment Procedures (ESAP) for the following reasons: (i) its
scope (1 024 kilometres of 225 kV transmission lines); and (ii) the major impacts and risks it
will generate, particularly regarding sensitive ecosystems and a large number of project
affected persons (more than 200). Environmental and Social Impact Assessment (ESIA)
reports, including Environmental and Social Management Plans (ESMPs) and Full
Resettlement Plans (FRPs) were prepared in February 2017 in Chad and in May 2017 in
Cameroon, in accordance with national regulations and the requirements of the Bank’s
Integrated Safeguards System (ISS). These reports were validated at the national level and
compliance certificates issued for Chad on 30 August 2017. Issuance of the certificates for
Cameroon is ongoing. ESIA and FRP summaries were posted on the Bank’s website on 11
August 2017. Although the choice of the transmission line layout is ideal from the
environmental and social standpoints compared with the alternative analysed, the chosen layout
will generate the following major positive and negative impacts and risks during the
construction and operation phases:
- Negative impacts during the pre-construction, construction and operation phases will
include: (i) the felling of trees along the transmission line right-of-way covering a total 4 733
hectares in Cameroon and 1 455 hectares in Chad; (ii) the loss, modification and fragmentation
of wildlife habitats and the degradation of ecosystem services, particularly around the Benue
National Park in Cameroon and the Mandélia National Park and Toupouri lowlands (RAMSAR
site) in Chad; (iii) health and safety risks for workers and neighbouring populations; (iv) loss
10
of assets and income by project affected persons (see section on resettlement for details); and
(v) various forms of water and soil pollution. The main cumulative negative impacts will be
the reduction of natural habitats and the disruption of ecosystem-based services.
- Positive impacts: the main positive project impacts on the environment will be: (i)
contribution to the reduction of greenhouse gas (GHG) emissions by the Chadian network,
which mainly depends on thermal sources; and (ii) benefits associated with increased access to
“cleaner” energy in contrast to fuel wood used by the households in the project area. Measures
will be implemented to mitigate all the negative impacts and risks identified. The mitigation of
the negative impacts identified during the implementation phase will mainly concern the
organization of work, as recommended in specifications for contractors. Such organization
will be based on binding clauses for contractors and the consulting engineer, the obligation to
implement a Health, Safety and Environmental Plan including emergency provisions, as well
as an environmental protection plan for sensitive environments. The total cost of the ESMP
(excluding the FRP) is estimated at EUR 4.8 million, of which: (a) EUR 2.7 million for
Cameroon; and (b) EUR 2.135 million for Chad.
3.2.2 ESMP implementation monitoring and supervision: the Project Implementation
Unit (SNE in Chad and SONATREL in Cameroon) will include an environmentalist
responsible for monitoring the implementation of the ESMP. He/she will be assisted by a young
environmentalist on internship during project implementation phase. The SNE and
SONATREL will benefit from the technical assistance provided by the consulting engineer on
environmental and social safeguards and the monitoring of ESMP implementation. The
ministries in charge of the environment of both countries will monitor and control compliance
with environmental and social standards during ESMP implementation. This will be the subject
of a protocol agreement concluded between each PIU and the ministry. The protocol agreement
will define actions to be undertaken and the logistical and financial arrangements.
Climate Change
3.2.3 As regards the climate, the project has been classified under Category 2 (average risk)
in accordance with the Bank’s Climate Safeguards System. The crossing of erodible zones and
rugged terrain, as well as the erosion of the banks of rivers crossed were considered under
layout alternatives. The design and determination of the layout retained took into account
erosion and flood risk prevention and adjustment measures. Hence, less than 30% of the layout
is situated in erodible terrain and a few flood-prone zones. The working designs will fine-tune
the construction details and secure the final routes.
3.2.4 The project technical design takes into account: (i) the installation and erection of
pylon supports outside flood-prone zones; (ii) the installation of substations outside flood-
prone/erodible areas and backfills; and (iii) the sizing of pylon foundations taking into account
the appropriate prevailing wind speeds. Concerning mitigation, a compensatory reforestation
plan will be implemented to mitigate deforestation and ensure a positive net gain in relation to
what will be destroyed. This surplus will contribute to carbon sequestration. In addition, the
energy to be generated in the short and medium term will be exclusively of water origin, thus
contributing to reducing the carbon footprint of the power grid, particularly in Chad.
11
Gender Issues
3.2.5 Although women represent about 52% of the total population in Chad, their education
level, which is often lower than that of men, their day-to-day household chores (which are time
consuming) and their low mobility constitute obstacles or impediments to their participation in
consultations and dealing with the changes that may be induced by the project. Women and
youths experience a very fragile socio-economic existence or none at all.
3.2.6 In Cameroon, women represent 51% of the total population in the project area.
Although they constitute an undeniable development force, about 75% of women are still far
from having access to the same rights, the same economic benefits and the same resources as
men3.
3.2.7 In view of the socio-economic realities of the PIA in Chad and Cameroon, the project
will support the socio-economic empowerment of women and youths (girls and boys). Thus,
in each of the two countries, the main aim will be to support: (i) at least 50 women economic
interest groups/associations comprising about 1 500 women in the development of income-
generating activities; and (ii) 50 youth groups/associations comprising about 1 500 youths aged
between 15 and 35 years in the development of productive entrepreneurial projects.
Specifically, the project will help these groups to better organize themselves (technical training,
association management, financial management, and support), to equip themselves with
production materials and to generate income, thus enabling members to improve their living
conditions by satisfying their family needs. The project will procure production equipment and
materials based on the list of requirements of associations and deliver them once the operational
capacity of the groups/associations would have been built.
3.2.8 In addition, the project will seek to contribute to efforts to improve access to basic
social services in Chad and Cameroon by: (i) supporting the decentralized services of the
ministries in charge of youth affairs and women’s empowerment (women’s empowerment
centres and multipurpose youth empowerment centres) in the project area; (ii) building the
civic and moral capacity of youths and women; (iii) providing literacy education for women
and youths with no schooling; and (iv) organizing awareness-raising and mobilization
campaigns on the rational use of energy, the fight against electrical accidents, gender-based
violence (VBG), HIV and AIDS and rational access to basic social services.
3.2.9 The Ministry of Youth Affairs and Civic Education (Directorate of Youth Socio-
economic Empowerment) and the Ministry of Women’s Empowerment and Family
(Directorate of Women’s Socio-economic Empowerment) will be involved in implementing
the project in Cameroon. In Chad, the Ministry of Youth Affairs, Sports and Leisure
(Directorate of Youth Affairs) and the Ministry of Women’s Affairs, Protection of Early
Childhood and National Solidarity (Directorate of Women’s Socio-economic Empowerment
and Directorate of Social Action) will be involved. In each country, a protocol agreement will
be concluded between these ministries and the respective PIUs.
Employment
3.2.10 During the high-voltage transmission line, substation and rural electrification
infrastructure construction phase, no fewer than 350 temporary direct jobs will be created, at
least 15% of them for women/girls, and 250 permanent direct and indirect jobs, at least 40 of
them for women/girls. It will be necessary to identify and mobilize skilled and unskilled local
workforce to fill these job vacancies within the prescribed timelines. The National Employment
3 BUCREP, National Population Status Report, 2014 Edition.
12
Promotion Authority (ONAPE) in Chad and the Ministry of Youth Affairs and Civic Education
(MINJEC) in Cameroon will provide assistance to the respective PIUs in recruiting and
supporting this local workforce. A protocol agreement for assistance will be concluded between
these bodies and the PIUs.
3.2.11 To foster the employability of young graduates hunting for jobs, the project will recruit
50 young graduates for internship, at least 50% of them girls, in Chad and 100 young graduates
for internship, at least 50% of them girls, in Cameroon. The recruitment will be done in two
streams of 25 trainees for a six-month period renewable once in Chad, and three streams of
trainees in Cameroon for a six-month period renewable once. These pre-employment trainees
will serve as expert assistants in the Project Management Unit, the Consulting Engineering
Firm, the electricity companies of both countries, and the enterprise recruited. The National
Employment Promotion Authority (ONAPE) in Chad and the Ministry of Youth Affairs and
Civic Education (MINJE) and the Ministry of Employment and Vocational Training
(MINEFOP) in Cameroon will support the PIUs under an assistance agreement.
Involuntary Resettlement
3.2.12 The project will affect 990 persons in Chad and 1 311 in Cameroon. The affected
property will be mainly buildings, dwellings, trees, community property (wells and boreholes)
and graves. Each country prepared and submitted a full resettlement plan (FRP) to the Bank.
The summary of the full resettlement plans was posted on the AfDB website on 11 August
2017.
3.2.13 In Chad, the Resettlement Plan valued at EUR 6 604 995 (CFAF 4 345 391 731) will
be financed by the Bank, considering the country’s economic and financial situation. In
Cameroon, the Resettlement Plan worth EUR 14 914 961 (CFAF 9 812 474 100) will be
financed by the Government of Cameroon.
4. PROJECT IMPLEMENTATION
4.1. Implementation Arrangements
Institutional Arrangements
4.1.1 Both countries will be responsible for project implementation on their territory
through their respective national entities, notably SONATREL for Cameroon and SNE for
Chad. The project will finance the support needed by the national entities to enable them to
effectively play their respective roles.
4.1.2 The National Electricity Corporation (SNE) will be Chad’s Project Executing Agency.
The SNE’s duties include the management of the rural electrification sub-sector. It will set up
a Project Implementation Unit (PIU) under the direct responsibility of the Director General,
which will coordinate all project activities. The PIU will be headed by a Coordinator who will
be a Power Engineer with a rich experience in project management. The composition of the
Unit is provided in Annex B.3. Considering the inadequate number of skilled SNE staff, the
PIU will be strengthened by experts who will be recruited through an open call for candidature.
The PIU will be assisted by the other SNE directorates in handling legal, technical, economic
and financial issues as well as those relating to communication and public relations. Special
emphasis will be laid on the capacity building of the SNE whose staff will work in collaboration
with experts for the transfer of skills through apprenticeship. The Government will provide
functional premises for the PIU and supply water and electricity.
13
4.1.3 The National Electricity Transmission Corporation (Société Nationale de Transport
de l’Electricité, SONATREL) will be the Project Executing Agency for Cameroon’s
component. It will set up a Project Implementation Unit (PIU) within the Corporation. A
distribution expert from the Rural Electrification Agency (AER) will join the PIU team to
monitor rural electrification activities. He/she will be AER’s project implementation focal
point. The composition of the Unit is provided in Annex B.3. The AER expert, as well as the
rest of the PIU’s senior officers will come from SONATREL, which already has highly
qualified staff from ENEO. Their CVs will be approved beforehand by the Bank. The PIU will
be assisted by the other SONATREL directorates in handling legal, technical, economic and
financial issues as well as those relating to communication and public relations. The AER focal
point will be assisted in the implementation of the project’s rural electrification component by
one (1) engineer and two (2) topographers and graphic designers who will also be designated
from among AER staff after approval of their CVs by the Bank. The focal point will be
supported by the other AER directorates from time to time. The Government, through
SONATREL, will provide functional premises for the PIU. The project will provide
SONATREL and AER with logistic support for efficient project implementation.
4.1.4 Proper project coordination at the multinational level will be ensured by the Inter-
State Steering Committee for the Cameroon-Chad Power Interconnection Project and the
Project for the Electrification of Border Towns and Localities in both Countries established on
10 February 2009. The Committee is a forum for consultation on operations in charge of
organizing necessary consultations between project stakeholders. It will be responsible for
taking strategic decisions at the supranational level. The Central Africa Power Pool (CAPP)
will provide secretarial services for the Committee and facilitate strategic discussions requiring
arbitration by the two countries. It will also recruit and monitor the Consulting Engineer and
the project accounts Auditor, both of whom will work exclusively for the project.
4.1.5 A National Steering Committee will be established in each country. The National
Steering Committees will be responsible for taking strategic decisions at the national level,
monitoring effective project implementation and ensuring the achievement of set objectives.
They will ensure: (i) the review and approval of the annual budgets of PIUs; (ii) synergy
between project actions and the other national sector policies; (iii) the reinforcement of the
participatory approach; and (iv) coordination between all national stakeholders for effective
project implementation, especially with regard to cross-cutting issues.
4.1.6 Chad’s National Steering Committee will comprise the representatives of the
ministries in charge of energy, planning, finance, regional development, public security,
women’s empowerment and social affairs, youth affairs, education, health, environment and
public service, as well as the SNE that will provide secretarial services for the Committee.
Cameroon’s National Steering Committee will comprise the representatives of the ministries
in charge of energy, planning, finance, regional development, public security, women’s
empowerment, social affairs, youth affairs, education, health, environment and public service,
the Electricity Regulatory Agency, ENEO, AER and SONATREL, which will provide
secretarial services for the Committee.
Procurement Arrangements
4.1.7 Applicable procurement policy and framework: the procurement of goods, works
and consultancy services financed by the Bank under the project will be in accordance with the
“Methodology for Implementation of the Procurement Policy of the African Development
Bank” approved in October 2015, and the provisions set forth in the Financing Agreement.
Pursuant to this policy and after reviewing the available assessments of the procurement
systems in the countries and the sector, all procurements under the project will be in accordance
with the Bank’s procurement methods and procedures (BPMPs), using appropriate Bank
standard bidding documents (SBDs).
14
4.1.8 Organization of procurements: project procurements will be carried out by three
different entities, depending on the type of procurement. Procurements in Cameroon will be
carried out by SONATREL’s Project Implementation Unit. Procurements in Chad will be the
responsibility of SNE’s PIU. Procurements common to the two countries (mostly the selection
of consulting firms) will be the responsibility of CAPP. A procurement specialist will be
recruited for the SONATREL and SNE PIUs, and will provide support to CAPP as appropriate.
4.1.9 Procurement capacity and risk assessment (PCRA): to take project specificities into
account, the Bank assessed the country, sector and project risks as well as the capacity of
SONATREL (Cameroon), SNE (Chad) and CAPP. The outcomes of these assessments showed
a substantial risk level for procurement4 and were used to guide the choice of a procurement
system (Borrower, Bank or Third Party) for specific activities, and to determine the appropriate
mitigation measures proposed in the PERCA Action Plan shown in Paragraph B.5.9 of Annex
B5. The resources required to implement these measures will be derived from the Bank grant
and loan.
Financial Management, Disbursements and External Audit
4.1.10 Fiduciary risk assessment and proposed mitigation measures: through its executing
agency, each country will be responsible for establishing a satisfactory budget, financial and
accounting management system and preparing financial reports. However, the external audit
of PIRECT will be the responsibility of the Central Africa Power Pool (CAPP). At the end of
the assessment mission, the PIRECT implementation fiduciary risk was deemed substantial,
given the inexperience of SNE (Chad) and SONATREL (Cameroon) in implementing Bank
Group operations and little knowledge of the management procedures of development
institutions. The technical capacity of SNE’s fiduciary team was assessed and deemed low
owing to the lack of appropriate management tools that meet the Bank’s requirements.
SONATREL, which was established in October 2015, is still having its management manuals
validated and the level of implementation of activities transferred to it is very low. CAPP’s
performance in the recruitment of auditors and submission of audit reports within the
prescribed timeframes is quite poor. The major risks identified, as well as the mitigation
measures, are summarized in the fiduciary risk assessment table in Annex B.4 (Technical
Annexes).
4.1.11 Disbursement arrangements: the disbursement of Bank Group (ADB/ADF/TSF)
resources under this project will be in accordance with the provisions of the disbursement
manual in force at the Bank. The disbursement methods proposed for the project are: (a) the
special account method for operating expenditure, management of partnership agreements and
capacity building activities; (b) the direct payment method for services, works and goods
contracts; and (c) the reimbursement method in case of pre-financing with counterpart
contributions of expenditure to be borne by the Bank Group (such pre-financing shall be
authorized beforehand by the Bank). Cameroon’s counterpart contributions will be disbursed
annually in a single tranche. In Cameroon, the “Caisse Autonome d’Amortissement (CAA)”
will be responsible for opening special accounts. It will open the following local currency
(XAF) special accounts in the name of PIRECT in a commercial bank acceptable to the Bank:
(i) a special account to receive ADF resources; and (ii) a special account to receive the
counterpart contributions of the Government of Cameroon for project activities. In Chad, the
special account will be opened by the PIU/SNE and its operation will require double signature
jointly with the Ministry of Economy and Development Planning (MEPD).
4.1.12 External audit: pursuant to Bank rules, project accounts will be audited annually by an
external audit firm recruited on a competitive basis and in accordance with Bank standard terms
of reference (ToR). The external audit will be adapted to the specific project risks and the audit
4 For further details, consult the Technical Annexes.
15
terms of reference agreed with the Bank. The audit reports of each financial year will be
submitted to the Bank latest six months following the closure of the financial year to which
they relate. CAPP will be responsible for recruiting and supervising the external auditor.
4.2. Project Monitoring and Evaluation
The main project phases are presented in Table 4.2 below. Project activities will be carried out
based on the project implementation schedule. Each of the two PIUs has a
monitoring/evaluation expert whose main duty will be to define measurable outcomes
(including those contained in the results-based logical framework) as well as the methodologies
and resources to be used to achieve such outcomes. He/she will have a monitoring and
evaluation module incorporated into the project management software. The
monitoring/evaluation expert will contribute to improving performance and accountability
based on clearly defined principles.
Table 4.2: Main Project Implementation Phases
Period Phases Monitoring Activities/Feedback Loop
December 2017 –
May 2018 Approval and effectiveness
Grant and loan approval
General Briefing Note
Signature of financing agreements and effectiveness
AfDB launching mission
December 2017 –
November 2018 Contract award
Preparation of bidding documents
Bidding and contract award
Signature of consulting firm contracts
Signature of works contracts
May 2019 – May
2021
Physical project
implementation
Execution of contracts
Preparation of periodic project progress reports
Bank supervision missions
Project environmental and social monitoring
Bank mid-term review
150 days spread over
5 financial year
closures
Audit of project accounts
Recruitment of the auditor to conduct annual audits
Conduct of annual audits
January 2022 – May
2022 Project completion
Borrower’s project completion report
Preparation of the Bank’s project completion report
4.3. Governance
The governance risk under this project is moderate and could arise during the establishment of
implementation units, particularly the selection of staff and their position within the
institutional mechanism of the entities hosting them. However, it will be mitigated by the fact
that the Bank will be involved in the competitive recruitment of the SNE/SONATREL PIUs
staff. In addition, under its new procurement policy, the Bank still has the means to ensure pre-
contract signature control.
4.4. Sustainability
4.4.1 The project is technically, economically and financially sustainable. Its technical
sustainability is guaranteed by the use of a simple technology that has been extensively tested
in the two countries. Chad runs a 90 kV transmission network around N’Djamena, maintained
by the SNE. Project implementation will build SNE’s capacity to maintain power transmission
infrastructure. The new facilities will be given special attention, considering the important role
that they will play in power supply in Chad. In Cameroon, project facilities will contribute to
consolidating the national power transmission network. This major infrastructure will be
maintained by SONATREL, which is responsible for the development, management and
maintenance of power transmission networks. Rural electrification is managed in both
16
countries by dedicated entities. Thus, the development of facilities will comply with relevant
national policies.
4.4.2 Project economic and financial sustainability will be based on increasing demand for
electricity in the two countries and the region. Interconnection provides an opportunity,
especially for Chad, to import hydropower from Cameroon at a more competitive price
compared to thermal generation, which is currently the main source of power. The project’s
impact on SNE’s service delivery and financial sustainability is indisputable (see technical
annexes).
4.4.3 Project sustainability will also be impacted by the quality of the agreements that will
be signed for the operationalization of facilities set up under the project. A purchase contract
will be signed between the Supplier and the customer for the sale of power by the Supplier and
purchase of same by the customer that is the supply of power by one party to the other party.
The contract will also cover, as appropriate, the delivery of the following associated services:
power storage, mutual assistance, sharing of opportunities and power transfer.
4.4.4 Lastly, an interconnection operators’ agreement shall be signed between the SNE,
SONATREL and ENEO aimed at ensuring the reliability and operability of interconnection
facilities through their coordinated programming. This agreement shall also cover pricing,
accounting management and procedures for emergency services and unintended exchanges
between interconnection networks. The signing of these two agreements, to the satisfaction of
the Bank and the Fund latest 31 December 2020, will be another loan/grant condition.
4.5. Risk Management
4.5.1 The major risk faced by the project is the security situation in Cameroon’s Far North
due to terrorist incursions and threats, as well as the ensuing influx of refugees. Chad is also
facing terrorist incursions and attacks in the same area. This situation may stretch project
implementation capacity to the limit. Moreover, the influx of refugees poses the risk of
increased social conflicts resulting from the low capacity to deliver social services. Concerted
and coordinated actions against terrorists in the region will help to mitigate the security risk.
Furthermore, investments under the project should largely contribute to enhancing the delivery
of social services through greater access to power, which could contribute to mitigating social
conflicts.
4.5.2 Another risk facing the project is the current weak capacity of the two national entities
that will be responsible, each in its own sphere, for various aspects of implementation. The
planned mitigation measures are: (i) the institutional support that the project will provide to the
executing agencies of the two countries; and (ii) the monitoring of the process of recruiting
experts for both entities to ensure optimal performance by the experts.
4.6. Knowledge Building
4.6.1 The project is an opportunity to disseminate new knowledge for the Bank and the
Governments of Cameroon and Chad. For the Bank, it is an example of support to a State in
transition, namely Chad, in implementing an anchor project in a complex sector. This project
will help to start the establishment of a power transmission network in Chad by providing
experience in the operation of this type of infrastructure. For Cameroon, which is already
involved in many interconnection projects under review, this project will be the first experiment
in the management of energy trade with a neighbouring country. It will also contribute to
operationalizing SONATREL through the management of a major project. Furthermore, it is
an experiment in collaboration between technical and financial partners. Lastly, the contracts
17
for construction works and consultancy services will include specific provisions to ensure the
training of SNE, SONATREL, ENEO and AER staff.
4.6.2 The Bank will play a key role in implementing the project and, through regular
consultation with other partners and beneficiaries, learn lessons from this experience for similar
future projects. The documentation from these meetings and supervision missions, periodic
progress reports and reports from various controls will constitute a basis for knowledge
building.
5. LEGAL FRAMEWORK
5.1. Legal Instrument
To finance this project, the Bank will: (i) grant a UA 182.03 million ADB loan and a UA 6
million ADF loan to the Republic of Cameroon; and (ii) award a UA 27.5 million TSF grant to
the Republic of Chad.
5.2. Conditions for Bank Intervention
5.2.1. Conditions precedent to effectiveness of the ADB and ADF Loan Agreements
Effectiveness of ADB and ADF Loan Agreements shall be subject to their signature by the
Bank and the Borrower, and fulfilment by the Borrower of the conditions set forth in Section
12.01 of the General Conditions Applicable to Loan Agreements and Guarantee Agreements
of the African Development Fund.
5.2.2. Conditions precedent to effectiveness of the TSF Grant Protocol Agreement
Effectiveness of the TSF Grant Protocol Agreement shall be subject to its signature by the
Donee and the Bank.
5.2.3. Conditions precedent to first disbursement of loan and grant resources
In addition to entry into force of the Loan/Grant Agreements, the first disbursement of each
loan/grant shall be subject to fulfilment by the Borrower/Donee of the following conditions to
the full satisfaction of the Bank:
(i) Provide evidence of establishing the National Steering Committee and
designating its members.
5.2.4. Other conditions:
In addition, the Borrower/Donee shall:
(i) Provide to the Bank, latest six (6) months before works start-up, evidence of
project financing closure, by presenting proof of approval of financing by other
donors, notably the Islamic Development Bank (IsDB) and the European Union
(EU);
(i) Provide to the Bank before or with the first request for disbursement from the
special account, evidence of opening a special account in a bank deemed
acceptable to AfDB, into which the loan/grant resources allocated for to the
operation of the project management units will be lodged;
(ii) Provide, as the works progress and, at any event, prior to any commencement
of works in a given area, evidence of compensating project-affected persons in
the area, in accordance with the Resettlement Action Plan (RAP) and the Bank’s
relevant rules and procedures, especially its Involuntary Resettlement Policy
18
and Integrated Safeguards System; or evidence of replenishing an escrow
account for compensation of PAPs;
(iii) Provide, latest six months following first disbursement, evidence of establishing
a satisfactory accounting and financial management mechanism within the PIU,
especially with: (a) the recruitment of its accounting and financial staff; (b) the
establishment of its computerized financial management and financial
information production system; and (c) the preparation of draft project progress
reports and quarterly financial reports acceptable to the Bank; and
(iv) Provide evidence of signing: (a) a power purchase and exchange contract; and
(b) an interconnection operators agreement, to the satisfaction of the Bank and
the Fund, latest 31 December 2020.
5.2.5. Commitments
The Borrower/Donee undertakes, to the satisfaction of the Bank, to:
(i) Provide the Bank with any document reasonably required to monitor project
implementation;
(ii) Have the PIU prepare project implementation and administrative and financial
management procedures manuals;
(iii) Have the PIU and its contractors implement the project, the RAP and the ESMP,
in accordance with national laws, environmental and social safeguard
recommendations, requirements and procedures, as well as relevant Bank rules
and procedures; and
(iv) Provide the Bank with quarterly ESMP implementation reports, including, as
appropriate, the weaknesses noted and corrective actions taken or to be taken.
5.3. Compliance with Bank Policies
The Chad-Cameroon Power Interconnection Project is consistent with all Bank policies in
force.
6. RECOMMENDATION
Management recommends that the Boards of Directors approve (i) an ADB loan of EUR 217.91
million and an ADF loan of UA 6 million to the Republic of Cameroon; (ii) a TSF grant of UA
27.5 million to the Republic of Chad.
I
ANNEXES
AnnexI: CAMEROON/Rationale for the Level of Government’s Counterpart
Contribution to AfDB Financing
1. The project will be financed by the Bank Group through a EUR 217.9 million ADB
loan and a UA 6 million ADF loan to Cameroon. The counterpart contribution is
estimated at UA 16.14 million, representing 6.54% of the total project cost
(Cameroon’s share, that is UA 246.63 million). This amount of counterpart financing
represents the current level of contribution affordable by the country.
2. The level of counterpart contribution to AfDB financing is below the minimum rate
of 50% of total project cost, as stipulated by Section 4.2.2 of the Policy on Expenditure
Eligible for Bank Group Financing. Thus, in accordance with the provisions of Section
4.2.2 of the above Policy (revised version of 19 March 2008), the level of counterpart
financing for AfDB Window was determined based on the following four criteria: (i)
the country’s commitment to implement its overall development programme;(ii) the
financing allocated by the country to the sector targeted by Bank assistance;(iii) the
country’s fiscal situation and debt level; and (iv) the upper cost-sharing limit and
guidelines laid down in the country financing parameters.
The country’s commitment to implement its overall development programme
3. Drawing lessons from implementation of its Poverty Reduction Strategy following the
achievement of the HIPCI completion point in 2006, the Government, in 2010,
formulated a vision for its development by 2035. This long-term vision seeks to
transform Cameroon into an emerging and democratic country united in its diversity.
Specifically, Vision 2035 is a benchmark for: (i) substantially reducing the poverty
level; (ii) achieving middle-income country status; (iii) becoming a newly
industrialized country; and (iv) consolidating the democratic process and national
unity.
4. These objectives have guided the orientations of the Growth and Employment
Strategy Paper (GESP) for the period 2010-2020, covering the first ten years of Vision
2035. The main issue concerning the implementation of GESP will be to focus on
growth acceleration, formal job creation and poverty reduction. Therefore, there are
plans to: (i) increase growth to an annual average of 5.5% over the period 2010-2020;
(ii) reduce under-employment from 75.8% to below 50% in 2020; and (iii) reduce the
poverty rate from 39.9% in 2007 to 28.7% in 2020.
5. To achieve these objectives, the Government has opted to implement a three-pronged
strategy in a coherent and integrated manner, with the support of Technical and
Financial Partners (TFPs), including the Bank. The strategy comprises: (a) a growth
strategy; (b) a governance and strategic State management strategy; and (c) an
employment strategy.
6. The presentation of this operation to the Board is taking place in a special context
marked by Cameroon’s graduation to ADB-window Blend Country status. Based on
its recent macro-economic performance, Cameroon graduated in 2014 to the non-
concessional windows of the World Bank and the AfDB Group. This dual graduation
reflects the confidence of multilateral institutions and enables the country to benefit
from the resources of both the concessional and non-concessional windows of the
II
AfDB Group. It should allow the country to finance its development, especially its
ambitious infrastructure programme, in a more cost-effective manner. The country’s
new ambition is to graduate from a "Blend Country" to “ADB Country” status.
Financing allocated by the country to the sector targeted by Bank assistance
7. The current public portfolio in Cameroon comprises two investment projects and one
energy sector project study for a total UA 77.820 million, representing 8.5% of the
portfolio. The operations are: (i) the Project for the Rehabilitation and Extension of
Power Transmission and Distribution Networks (PRERETD) approved in September
2010; (ii) the Lom Pangar Hydropower Project (PAHLP) approved in November
2011; and (iii) the Cameroon-Chad Power Interconnection Project Study approved in
October 2013. The first project seeks to construct and extend power networks, and
increase the number of power connections. The second project aims at increasing the
country’s power generation. The third project financed engineering studies for the
preparation of this investment project.
8. With this new operation, the Bank will consolidate the achievements of previous
projects in order to achieve the objectives set in the country’s infrastructure
development strategy.
9. Based on the foregoing, and at the request of the Government, it is proposed that the
AfDB Window limit the counterpart funding to 6.54% of the total project cost, net of
taxes, for the partial financing of works, and the full payment of expropriation costs
and the operating expenses of the implementation unit as well as programme-related
tax expenditure resulting from exemptions from custom duties and other taxes.
The country’s fiscal situation and debt level
10. Fiscal policy over the past three years has been moderately expansionary to bridge
the infrastructure gap, especially in the energy and transport sectors. These
anchor projects have been financed with external borrowing and oil revenue.
11. The signature of a three-year programme backed by an Extended Credit Facility
(ECF5) with the IMF is expected to contribute to stabilizing the macroeconomic
framework in the medium term. For 2016, growth was scaled down slightly from
4.7 % to 4.5 %. For 2017, it should reach 3.7%, while inflation is expected to remain
low (0.5 %). The fiscal deficit should stand at 3.1% of GDP in 2017 and 2.3 % in
2018. Public investment expenditure should stabilize progressively, dropping from
about 8.8% of GDP in 2016 to 7.3% in 2017, then to 6.7% in 2019 at the end of the
programme. Revenue (including grants) will increase moderately from 16.3% of GDP
in 2016 to 16.7% in 2017 and 17.6% in 2019.
12. A more prudent and rigorous debt management is required considering the
deterioration of debt ratios. According to the last debt sustainability analysis carried
out by the International Monetary Fund (IMF) and the World Bank in 2015 and 2016,
the country’s risk of debt distress has moved from "moderate to high". The sharp drop
in crude oil prices, which is the country’s main export product, has since 2015 led to
the deterioration of the ratio of net present value of debt to exports of goods and
5 The Extended Credit Facility (ECF) concluded on 26 June 2017 with the IMF over a three-year period (2017-2019), more than ten years after the previous
one which led to the achievement of the HIPCI completion point in 2006, shows a financing need estimated at CFAF 1302 billion. This financing gap should be bridged by budget support operations implemented by TFPs, including the IMF, AfDB, the World Bank, the EU and AFD.
III
services. Despite a debt ratio below the community ceiling of 70% of GDP, the
financing of anchor infrastructure projects with commercial loans has led to a sharp
increase in public debt, which reached 34.1% of GDP in 2016, against 15.6% in 2012.
These findings call for a more prudent and rigorous debt management. To mitigate the
risk of debt distress, the debt management institutional mechanism has been
reinforced. The opinion of the National Public Debt Committee (CNDP), which had
an advisory capacity at its inception, became compulsory in 2016 and is a pre-requisite
for any loan decision. The measures to be taken by the Government will help to
stabilize public debt at the 2017 baseline (36.1%) over the period 2017-2029, while
avoiding the accumulation of arrears, especially internal debt arrears.
Upper cost-sharing limit and guidelines laid down in the country financing
parameters
13. The country’s financing parameters (CFPs) on cost sharing highlight the country’s
commitment and ownership with respect to activities financed by the Bank under the
project. These parameters also allow for some flexibility in determining the
percentage of counterpart contribution. The Bank reviewed the level of commitment
and ownership using the criteria, which include: (i) the contribution of project
activities to achieving the country’s development goals as outlined in the Growth and
Employment Strategy Paper (GESP) covering the period 2010-2020; and (ii) the
alignment and linkage with the strategic pillars of the Bank’s Country Strategy Paper
(CSP) for Cameroon approved in July 2015 for the period 2015-2020, as well as the
inclusion of the project financed by the Bank and the other technical and financial
partners in the State budget.
14. The CFPs specify that the percentage of the total cost financed by the Bank will be
estimated on a case-by-case basis according to project context and considerations, the
expression of Government’s commitment and ownership of project implementation,
the level of co-financing with the other TFPs and the country’s fiscal situation. It
should be noted that the parameters are consistent with the World Bank’s CFPs in
Cameroon prepared in 2005 while the country was still eligible for concessional
resources only. These CFPs showed that World Bank financing could reach 100% of
the total project cost (tax inclusive), despite the fact that co-financing could be
obtained for some projects, notably in the transport sector. These parameters have not
changed despite Cameroon’s graduation to the status of IBRD/IDA “Blend Country”
in April 2014 at the World Bank and ADB/ADF “Blend Country” in July 2014.
15. In light of the foregoing, and at the request of the Government, it is proposed
that the counterpart contribution be set at 6.54%of the total project cost, net of
taxes. This level of counterpart contribution also takes into account the size of co-
financing mobilized by the Bank and the Government from the other TFPs. Therefore,
Cameroon’s counterpart contribution to the project (UA 16.14 million) will mainly be
used to finance expropriation costs and project-related tax expenditure resulting from
exemptions from customs duties and other taxes.
IV
Annex II.1: Cameroon’s Comparative Socio-economic Indicator
Year Cameroon Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2016 475 30 067 97 418 36 907Total Population (millions) 2016 23,9 1 214,4 6 159,6 1 187,1Urban Population (% of Total) 2016 55,1 40,1 48,7 81,1Population Density (per Km²) 2016 50,6 41,3 65,1 33,8GNI per Capita (US $) 2015 3290 2 153 4 509 41 932Labor Force Participation *- Total (%) 2016 76,1 65,7 63,5 60,0Labor Force Participation **- Female (%) 2016 71,1 55,7 48,9 52,1Sex Ratio (per 100 female) 2016 100,0 100,1 106,0 105,0Human Dev elop. Index (Rank among 187 countries) 2015 153 ... ... ...Popul. Liv ing Below $ 1.90 a Day (% of Population) 2014 24,0 ... ... ...
Demographic Indicators
Population Grow th Rate - Total (%) 2016 2,5 2,5 1,3 0,6Population Grow th Rate - Urban (%) 2016 3,5 3,6 2,4 0,8Population < 15 y ears (%) 2016 42,3 40,9 27,9 16,8Population 15-24 y ears (%) 2016 20,2 19,3 16,9 12,1Population >= 65 y ears (%) 2016 3,2 3,5 6,6 17,2Dependency Ratio (%) 2016 83,6 79,9 54,3 52,0Female Population 15-49 y ears (% of total population) 2016 24,0 24,0 25,7 22,8Life Ex pectancy at Birth - Total (y ears) 2016 56,4 61,5 69,9 80,8Life Ex pectancy at Birth - Female (y ears) 2016 57,6 63,0 72,0 83,5Crude Birth Rate (per 1,000) 2016 35,7 34,4 20,7 10,9Crude Death Rate (per 1,000) 2016 10,9 9,1 7,6 8,6Infant Mortality Rate (per 1,000) 2015 57,1 52,2 34,6 4,6Child Mortality Rate (per 1,000) 2015 87,9 75,5 46,4 5,5Total Fertility Rate (per w oman) 2016 4,6 4,5 2,6 1,7Maternal Mortality Rate (per 100,000) 2015 596,0 476,0 237,0 10,0Women Using Contraception (%) 2016 34,1 31,0 62,2 ...
Health & Nutrition Indicators
Phy sicians (per 100,000 people) 2005-2015 8,3 41,6 125,7 292,2Nurses and midw iv es (per 100,000 people) 2005-2015 52,0 120,9 220,0 859,4Births attended by Trained Health Personnel (%) 2010-2015 64,7 53,2 69,1 ...Access to Safe Water (% of Population) 2015 75,6 71,6 89,4 99,5Access to Sanitation (% of Population) 2015 45,8 39,4 61,5 99,4Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2015 4,5 3,4 ... ...Incidence of Tuberculosis (per 100,000) 2015 212,0 240,6 166,0 12,0Child Immunization Against Tuberculosis (%) 2015 74,0 81,8 ... ...Child Immunization Against Measles (%) 2015 79,0 75,7 83,9 93,9Underw eight Children (% of children under 5 y ears) 2010-2015 14,8 18,1 15,3 0,9Prev alence of stunding 2010-2014 31,7 33,3 25,0 2,5Prev alence of undernourishment (% of pop.) 2015-2016 9,9 16,2 12,7 ...Public Ex penditure on Health (as % of GDP) 2014 0,9 2,6 3,0 7,7
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2010-2016 117,1 101,2 104,9 102,4 Primary School - Female 2010-2016 110,7 98,4 104,4 102,2 Secondary School - Total 2010-2016 58,1 52,6 71,1 106,3 Secondary School - Female 2010-2016 53,5 50,2 70,5 106,1Primary School Female Teaching Staff (% of Total) 2010-2016 54,2 47,1 59,8 81,0Adult literacy Rate - Total (%) 2010-2015 75,0 66,8 82,3 ...Adult literacy Rate - Male (%) 2010-2015 81,2 74,3 87,1 ...Adult literacy Rate - Female (%) 2010-2015 68,9 59,4 77,6 ...Percentage of GDP Spent on Education 2010-2015 3,0 5,0 4,0 5,0
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2014 13,1 8,7 11,2 10,3Agricultural Land (as % of land area) 2014 20,6 41,7 37,9 36,4Forest (As % of Land Area) 2014 40,3 23,2 31,4 28,8Per Capita CO2 Emissions (metric tons) 2014 1,6 1,1 3,5 11,0
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :
UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available. * Labor force participation rate, total (% of total population ages 15+)
** Labor force participation rate, female (% of female population ages 15+)
COMPARATIVE SOCIO-ECONOMIC INDICATORS
Cameroon
June 2017
0
10
20
30
40
50
60
70
80
90
100
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Infant Mortality Rate( Per 1000 )
C am er o on A fr i ca
0
500
1000
1500
2000
2500
3000
3500
4000
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
GNI Per Capita US $
C am er o on A fr i ca
0,0
0,5
1,0
1,5
2,0
2,5
3,0
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Population Growth Rate (%)
C am er oon A fr ic a
01020304050607080
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Life Expectancy at Birth (years)
C am er o on A fr i ca
V
Annex II.2 : Chad’s Comparative Socio-economic Indicators
Year Chad Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2016 1 284 30 067 97 418 36 907Total Population (millions) 2016 14,5 1 214,4 6 159,6 1 187,1Urban Population (% of Total) 2016 21,9 40,1 48,7 81,1Population Density (per Km²) 2016 11,51 41,3 65,1 33,8GNI per Capita (US $) 2015 880 2 153 4 509 41 932Labor Force Participation *- Total (%) 2016 71,6 65,7 63,5 60,0Labor Force Participation **- Female (%) 2016 64,0 55,7 48,9 52,1Sex Ratio (per 100 female) 2016 100,3 100,1 106,0 105,0Human Dev elop. Index (Rank among 187 countries) 2015 186 ... ... ...Popul. Liv ing Below $ 1.90 a Day (% of Population) 2011 38,4 ... 15,9 ...
Demographic Indicators
Population Grow th Rate - Total (%) 2016 3,3 2,5 1,3 0,6Population Grow th Rate - Urban (%) 2016 3,6 3,6 2,4 0,8Population < 15 y ears (%) 2016 47,6 40,9 27,9 16,8Population 15-24 y ears (%) 2016 20,3 19,3 16,9 12,1Population >= 65 y ears (%) 2016 2,5 3,5 6,6 17,2Dependency Ratio (%) 2016 100,1 79,9 54,3 52,0Female Population 15-49 y ears (% of total population) 2016 22,1 24,0 25,7 22,8Life Ex pectancy at Birth - Total (y ears) 2016 52,2 61,5 69,9 80,8Life Ex pectancy at Birth - Female (y ears) 2016 53,3 63,0 72,0 83,5Crude Birth Rate (per 1,000) 2016 44,3 34,4 20,7 10,9Crude Death Rate (per 1,000) 2016 13,6 9,1 7,6 8,6Infant Mortality Rate (per 1,000) 2015 85,0 52,2 34,6 4,6Child Mortality Rate (per 1,000) 2015 138,7 75,5 46,4 5,5Total Fertility Rate (per w oman) 2016 5,9 4,5 2,6 1,7Maternal Mortality Rate (per 100,000) 2015 856,0 476,0 237,0 10,0Women Using Contraception (%) 2016 6,9 31,0 62,2 ...
Health & Nutrition Indicators
Phy sicians (per 100,000 people) 2005-2015 4,4 41,6 125,7 292,2Nurses and midw iv es (per 100,000 people) 2005-2015 30,9 120,9 220,0 859,4Births attended by Trained Health Personnel (%) 2010-2015 24,3 53,2 69,1 ...Access to Safe Water (% of Population) 2015 50,8 71,6 89,4 99,5Access to Sanitation (% of Population) 2015 12,1 39,4 61,5 99,4Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2015 2,0 3,4 ... ...Incidence of Tuberculosis (per 100,000) 2015 152,0 240,6 166,0 12,0Child Immunization Against Tuberculosis (%) 2015 70,0 81,8 ... ...Child Immunization Against Measles (%) 2015 62,0 75,7 83,9 93,9Underw eight Children (% of children under 5 y ears) 2010-2015 28,8 18,1 15,3 0,9Prev alence of stunding 2010-2014 38,7 33,3 25,0 2,5Prev alence of undernourishment (% of pop.) 2015-2016 34,4 16,2 12,7 ...Public Ex penditure on Health (as % of GDP) 2014 2,0 2,6 3,0 7,7
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2010-2016 101,4 101,2 104,9 102,4 Primary School - Female 2010-2016 88,0 98,4 104,4 102,2 Secondary School - Total 2010-2016 22,4 52,6 71,1 106,3 Secondary School - Female 2010-2016 14,0 50,2 70,5 106,1Primary School Female Teaching Staff (% of Total) 2010-2016 15,4 47,1 59,8 81,0Adult literacy Rate - Total (%) 2010-2015 40,0 66,8 82,3 ...Adult literacy Rate - Male (%) 2010-2015 48,4 74,3 87,1 ...Adult literacy Rate - Female (%) 2010-2015 31,8 59,4 77,6 ...Percentage of GDP Spent on Education 2010-2015 2,9 5,0 4,0 5,0
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2014 3,9 8,7 11,2 10,3Agricultural Land (as % of land area) 2014 39,7 41,7 37,9 36,4Forest (As % of Land Area) 2014 4,0 23,2 31,4 28,8Per Capita CO2 Emissions (metric tons) 2014 0,0 1,1 3,5 11,0
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :
UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available. * Labor force participation rate, total (% of total population ages 15+)
** Labor force participation rate, female (% of female population ages 15+)
COMPARATIVE SOCIO-ECONOMIC INDICATORS
Chad
June 2017
0
20
40
60
80
100
120
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Infant Mortality Rate( Per 1000 )
Chad Africa
0
500
1000
1500
2000
2500
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
GNI Per Capita US $
Chad Africa
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Population Growth Rate (%)
Chad Africa
01020304050607080
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Life Expectancy at Birth (years)
Chad Africa
VI
Annex III.1: Table of AfDB Portfolio in Cameroon as at 30 June 2017
SECTOR PROJECTS ADB
loan
ADF/ NTF
Loan ADF Grant
Governance
Support Project for the Modernization of
the Land Registration System and
Business Climate (PAMOCCA 1).
7.00
Support Project for the Modernization of
the Land Registration System and
Business Climate (PAMOCCA 2).
5.00
Transport
Kumba-Mamfe Road Project 47.26
Road Programme 1: Batchenga-Léna 126.43 12.45
Road Programme 2: Yaounde-Bafoussam 221.71 12.82
Info-Com
Tech Central African Backbone 30.61 1,24
Water and
Sanitation
Yaounde Sanitation Project (PADY 2) 20.99 2,89
Semi-urban DWSS Project 33.77
Storm water Harnessing Studies
PEMVEP 1,06
Energy
Project for the Rehabilitation and
Extension of Power Transmission and
Distribution Networks (PREREDT)
31.64
Lom Pangar Hydroelectric Project 44.93
Agriculture Rural Infrastructure Support - Grassfield 2 13.61 3,19
Agricultural Value Chain Development
Project (AVC –DP)
73.28
Total Public National Operations 452.03 229.47 8.38
Private
Sector
Cameroon Shipyard and Industrial
Engineering Company (CNIC) 32.64
AES-SONEL Investment Programme 49.24
Dibamba Thermal Power Plant 18.27
Kribi Thermal Power Plant 23.45
Total Private National Operations 123.60
Regional
Environment
Central Africa Biodiversity Conservation
Programme -Protecting Central Africa’s
Elephants
0.25
Programme to Rehabilitate and Strengthen
the Resilience of Lake Chad Basin
Systems (PRESIBALT)
12.5
Regional
Energy
Study on the Chad – Cameroon 225 kV
Power Interconnection Project 1.25
Regional
Transport
Transport Facilitation on the Bamenda -
Enugu Corridor 90.39
Transport Facilitation on the Brazzaville -
Yaounde Corridor (Ketta –Djoum 1) 59.27
Transport Facilitation on the Brazzaville -
Yaounde Corridor (Ketta –Djoum 2) 50.92
Total Public Multinational Operations 50.92 3.66
TOTAL OVERALL PORTFOLIO
(UA 1.028 billion = USD 1.43 billion) 626.55 393.13 8.38
VII
Annex III.2: Table of AfDB Portfolio in Chad as at 30 June 2017
SECTOR PROJECTS ADF Commitment (UA)
Governance
Business Climate Improvement and Economic
Diversification Support Project (PACADET) - LOAN 3 970 000
Business Climate Improvement and Economic
Diversification Support Project (PACADET) -
GRANT 1 920 000
Round Table 650 000
Budget Support Programme - ADF GRANT 11 866 000
Budget Support Programme II - ADF LOAN 4 280 700
Budget Support Programme II – TSF GRANT 15 000 000
Achievement of HIPCI Completion Point - Grant 1 400 000
Total Governance (Institutional Support and Capacity Building) 39 086 700
Social Project to Promote the Education of Girls and
Literacy 1 000 000
Total Social 1 000 000
Transport
Algeria/Niger/Chad Road Project - Multinational
(LOAN) 20 900 000
Algeria/Niger/Chad Road Project - Multinational
(GRANT) 20 400 000
Kyabe-Singako Road Tarring Project (GRANT) 12 846 000
Total Transport 54 146 000
Water and
Sanitation
DWSS Programme for 15 Secondary Centres
(GRANT) 6 900 000
DWSS Programme for 15 Secondary Centres
(RWSSI GRANT) 2 460 569
DWSS Programme for 15 Secondary Centres
(LOAN) 10 710 000
Total Water and Sanitation 20 070 569
Energy Study on the Chad-Cameroon 225 kV Power
Interconnection Project (GRANT) 1 250 000
Total Energy 1 250 000
Agriculture
Lake Chad Basin Sustainable Development
Programme/ MULTINATIONAL (GRANT) 30 000 000
Rural Infrastructure Support Project (LOAN) 5 200 000
Rural Infrastructure Support Project (GRANT) 5 200 000
Programme to Build Resilience to Recurrent Food and
Nutritional Insecurity in the Sahel (P2RS) 9 770 000
Programme to Rehabilitate and Strengthen the
Resilience of Socio-ecological Systems
(PRESIBALT) (GRANT) 5 350 000
Biodiversity Conservation Programme in Central
Africa (GRANT) 250 000
Total Agriculture 55 770 000
TOTAL OVERALL PORTFOLIO
(Loans: UA 45 060 700 million & Grants: UA 126 262 569
million)
171 323 269
VIII
Annex IV.1: Similar Projects Financed by the Bank and other Development Partners of
Cameroon
Donor Project Name Approval Date Amount of
Financing Implementation Status
IBRD Upgrading the
Transmission Grid and
Reform of the Sector
June 2017 USD
116 million
Financing process
finalized. Final design
studies ongoing
IsDB
Strengthening Grids USD 110.3
million
Identification mission
fielded by IsDB in
November 2015 and
confirmation of financing
subject to PDSs/FDSs and
ESIA.
Financing of PDSs/FDSs
and ESIA by IBRD under
PMDRTERS
Société
Générale-
Coface /
BOUYGUES
Strengthening Networks
in Douala
Decree of the
President of the
Republic
pending
USD 154.27
million
Financing under review
Cameroon
Deutsche
Bank + Bank
Spain/
ELECNOR
Access Roads and Loops
in Yaoundé
August 2017 EUR 45 million Financing agreement
signed. Studies finalized.
Start of works in 2018
EXIMBANK
India Reinforcement of RIS In 2017 USD 115.15
million
Authorization decree
signed and financing
agreement signed
EU/
Cameroon ERD RUMPI Project (Studies and construction
of a mini-hydro-electric
plant and related power
networks, and rural
electrification of 59 rural
localities)
2011 CFAF 11945
million
70%
ADF of the
Kingdom of
Spain
PUROIL Project
Studies and construction of
135. 288 kilometres of
three-phase medium-
voltage grids, 15. 965
kilometres of single-phase
medium-voltage grids 5.26
kilometres of three-phase
low-voltage grids, 24.237
kilometres of single-phase
low-voltage grids,
electrification of 29 rural
localities and
establishment of 650
connections
2005 CFAF 4 707
million
100%
IsDB IsDB Project Phase 1
Studies and construction of
479.57 kilometres of three-
phase medium-voltage
grids, 192.795 kilometres
of single-phase low-
voltage grids, 211.31
kilometres of three-phase
low-voltage grids, 309.84
kilometres of single-phase
low-voltage grids,
2011 CFAF 6 290
million
100%
IX
Donor Project Name Approval Date Amount of
Financing Implementation Status
electrification of 62 rural
localities and
establishment of 3 778
connections
World Bank
(IDA)
PDSEN Project Studies and construction of
227.285 kilometres of
three-phase medium-
voltage grids, 109.297
kilometres of single-phase
medium-voltage grids,
83.423 three-phase low-
voltage grids, 146.852
kilometres of single-phase
low-voltage grids,
electrification of 80 rural
localities and
establishment of 10374
connections
2011
CFAF
8 877 million
100%
IsDB IsDB Project PHASE 2
Electrification of 102 rural
localities
2016 CFAF 21 506
million Project ongoing
BADEA BADEA Projects
Electrification of 50 rural
localities
2016 CFAF 7 076
million
Project ongoing
European
Union /
Cameroon
PLAN VER Projects
Construction of two mini-
hydroelectric plants in
Ngoro and Batié
2016 CFAF 12 000
million
Project ongoing
Annex IV.2: Similar Projects Financed by the Bank and other Development Partners of
Chad
Donor Project Name Approval Date Amount of
Financing
Implementation
Status
AfDB Study on the Chad-
Cameroon Power
Interconnection Project
7/10/2013 UA 1 250 000
(share of Chad)
Studies completed in
May 2017
IsDB Solar Energy Project for
Rural Development
(3MW photovoltaic solar
plant & medium-voltage
and low-voltage
distribution network)
Financing request
being negotiated
with the IsDB
USD 22.90
million
Pre-feasibility study
ongoing
TBEA
Exim Bank of
China
Construction of a crude
oil-fired power plant (90
MW)
Commercial
contract signed
USD 146
million
Pre-feasibility study
ongoing