mercredi 19 octobre 2011

Projects ongoing in the electrcity sector - Cameroon


    I.      Modalities to become independent electricity producer in Cameroon


The law 98/022 of 24 december 1998, governing the electricity sector indicates that, activities in the electricity sector shall be placed under one of the following legal schedules:

-          The concession;

-          The licence;

-          The authorization;

-          The declaration;

-          The free scheme.

The activities provided above shall entail the payment of royalties, the rate, collection and distribution of which shall be defined statutory instruments.



1.  Common provisions on concessions (Du régime de la concession)


All electricity production activities and State lands, in particular hydroelectricity, as well as electricity conveyance and distribution, shall be done under a concession, unless otherwise provided by this law.

The concession agreement shall determine the duration and conditions of suspension, expiry and revision, renewal and cancellation of the contract by the granting authority, as well as the settlement of disputes. The owners of hydroelectric power stations as well as conveyors and distributors shall be selected in accordance with a procedure which shall be fixed by statutory accordance.

There are specific provisions on production concession; specific provisions on conveyance concessions; specific provisions applicable to electricity distribution concessions.

With regard to the first, production concessions shall define the conditions for operating specific installations designed to generate energy from any source and sell or supply such electricity to third parties. They shall also define the producer’s right and obligations within the framework of his activity.

Producers shall be subjected to special obligations required for the general interest, in particular the obligation to supply electricity to distributors or bulk users in an interrupted manner, except in cases of overpowering circumstances. It shall be the duty of Electricity Sector Regulatory Board to assess the cases of overpowering circumstances referred above.

2.      The licence schedule (Du régime de la licence)

Licences shall be awarded for :

-          The independent production of electricity;
-          The sale of high and medium voltage electricity power;
-          The import and export of electricity.


The electricity Sector Regulatory Board shall receive and process applications for licences relating to the activities referred above and shall forward applications to the service in charge of electricity. Independent electricity producers shall produce and sell electricity to distributors or to bulk users, in accordance with the provisions presented above.

3. Regulations relating to authorization, déclarations and freedom to install electricity lines (Du régime de l’autorisation, de la déclaration et de la liberté)

3.1.  The authorization schedule

The following shall fall under the authorization schedule under conditions laid down by statutory instruments:

-          Private production of more than 1 MW;
-     Setting up and operating electricity distribution installations with a view to directly or indirectly supplying power of not more than 100 kW;
-         Installation of private electricity lines along or across a highway or running horizontally at a distance of less than 10 m from an existing electric, telephone or telegraph line situated on the public property.

The authorization may be granted only where there is no public electricity service due to the lack or shortage of electricity production and conveyance means in the area concerned.

3.2.  The declaration schedule

Where the output o installations for personal production of electricity is more than 100 kW and less than 1 MW, the owner of such installations shall be bound to make a declaration to the Electricity Sector Regulatory Board before operating said installations.

3.3.  The free schedule

Installation of private electricity lines shall be done without restriction where the facilities are entirely located on private property, provided such lines shall not run along or go across a highway, and that the wires shall at no point run horizontally at less than 10 m from an existing electric, telephone or telegraph line on public property. Installation of private electric lines must meet the required standards laid down by the service in charge of electricity.

The setting up and operation of installations for personal production of electricity other than in hydroelectric power stations whose output is not more than 100 kW shall not be subject to any legal or administrative procedure. Such installations shall be considered as domestic installations.

                                             For further informations, read law 98/022

           II.    All the hydroelectric projects ongoing

1.      LOM PANGAR
-          Owner : Electricity Development Corporation (EDC)
-          Capacity of the dam: 7 billion m3, he is endowed of a factory electricity production of 30 MW.
-          Signing of the contract: 12 august 2011
-          Work begins: November 2011
-          Financial partner: China International Water and Electric Corporation
-          Cost of the project: 150 billion CFA F (20% by Cameroonian government and 80% by international institutions)
-          Completion: 38 months after the beginning of the works (2014)

2.      MEMVE’ELE
-          Installed capacity: 201 MW
-          Financial partner: Eximbank – China.
-          Signing of the contact: May 2011
-          Cost of the project: 243 billion CFA F
-          Completion: 2016

3.      HYDRO MEKIN
-          Owner: Mekin Hydroelectric Development Corporation
-          Creation the company: October 2010
-          Capacity of the dam: 940 millions m3
-          Installed capacity: 12 MW
-          Financial partner: China
-          Cost of the project: 22 billion CFA F
-          Completion: 2013

4.      Kribi Power Development Corporation (KPDC)
-          Description: He concerns a production of electricity from natural gas
-          Prime contractor: KPDC
-          Installed capacity: 216 MW
-          Work begins: 2010; resumption of the works: June 2011
-          Financial partner: AES-SONEL - Cameroonian government
-          Cost of the project: 176.3 billion CFA F
-          Completion: September 2012

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