Story, Louvier Kindo Tombe
The Memorandum of Understanding (MoU), was signed on Thursday 20 April 2023. It was paraphrased for Cameroon by the Minister of Water Resources and Energy, Gaston Eloundou Essomba.
“The government is delighted to partner with Savannah Energy in order to deliver clean and affordable electricity to support our industrialization plans for northern Cameroon,” Gaston Eloundou Essomba said.
The Bini a Warak hydroelectric project will address the current electricity shortages caused by the hydrology deficit of the Lagdo Dam and also reduce the consequent reliance on expensive thermal generated power in the regions.
The project involves the construction of a dam on the Bini River, together with an 82km2 reservoir and associated tunnels, powerhouses, substations, and a 225kV transmission line connecting the project to Cameroon’s northern electricity grid. The project is intended to be developed on an independent power project basis with the first power from the project expected in the 2027 to 2028 window.
“I would like to thank the government of Cameroon and, in particular, Minister Gaston Eloundou Essomba for the strong support we have received in relation to Savannah taking over the development of the Bini project,” says Andrew Knott, CEO of Savannah Energy.
“We look forward to working with the government of Cameroon and our intended developmental finance partners as we move this project through the development and construction phases towards the intended first power in 2027/2028.”
The Memorandum of Understanding was signed in the presence of the British High Commissioner to Cameroon, Dr. Christian Dennys-McClure.
“I am delighted that a British company, Savannah Energy, is making such a substantial investment in renewable energy in Cameroon,” Dr. Christian Dennys-McClure said.
“Cameroon has plentiful hydropower resources which, through investments like this, can be harnessed to develop the economy and improve the lives of millions of Cameroonians. This is a further example of the United Kingdom’s commitment to Cameroon,” the High Commissioner added.
During the signing, Minister Gaston Eloundou Essomba said “our partnership with Savannah Energy is in line with our long-term vision 2035 master plan for increasing the electrification in the country and the National Development Strategy NDS30”.
Why Savannah Energy
The Bini a Warak hydroelectricity project was launched in 2017 as part of the major infrastructure work initiated in the country in 2012, but was suspended in 2018 just after the initial works were completed.
The project was first handed to Chinese energy company, Sinohydro, which pre-finance the preparatory works to the tune of FCFA 20 billion according to the government of Cameroon.
Reports hold that immediately after the preparatory works, the company started having financial challenges with the government to the extent that they decided to quit.
31 March 2022 in Yaounde, Water Resources and Energy Minister, Gaston Eloundou Essomba in a meeting tried to bring the Chinese financier back to the negotiation table but to no avail.
22 August 2022, the site manager sent a letter to the Mayor of Ngan’ha, where the project sits, informing him that the company is already moving equipments from the work site.
The reason for the suspension of works was the non-payment by the state of the insurance premium conditioning the release of a loan of FCFA 182 billion obtained from the Chinese bank ICBC, News Upfront gathered.
The coming of Savannah Energy PLC is thus to fill the gap left by Sinohydro, experts say.
