BDEAC Loans $138 Million to Equatorial Guinea Hydroelectric Power Station
This article was published on Year of Investment
The construction of the Sendje hydroelectric power station in Equatorial Guinea has received a capital injection from the Development Bank of Central African States (BDEAC).
In June, BDEAC and the government of Equatorial Guinea signed an agreement for the provision of a $138 million loan for the construction of the 200MW hydroelectric plant.
BDEAC represents the development financial institution of countries in the Economic and Monetary Community of Central Africa, which include Gabon, Cameroon, the Central African Republic, Chad, the Republic of the Congo and Equatorial Guinea.
Construction of the Sendje hydroelectric plant began in 2012 and is expected to be completed by the end of 2020, although it has faced several challenges in the process, including poor infrastructure required for large-scale construction and a lack of topographic, geological and hydrological data. Progress was also slowed by a shortage of skilled labor, few local manufacturers and suppliers of necessary equipment and a shortage of special construction equipment.
The project is currently led by Duglas Alliance, a Ukrainian firm specializing in the construction of hydro and industrial facilities.
The Sendje hydroelectric power station is projected to play an important role in meeting increasing energy demand in Equatorial Guinea. It will complement power produced by the Djibloho hydroelectric power station, built by Chinese firm Sinohydro and completed in 2012.
Continental Equatorial Guinea currently experiences severe electricity shortages, which affect industrial production, mining, production and processing of agricultural products. As a result, the plant will supply clean and sustainable energy to the cities of Bata, Mbini, Kogo, Añisok, Mongomo and Ebebiyin, increasing the country’s installed capacity to 590 MW.
Additional benefits include a reduction of the average kilowatt-hour price and an increase in the rate of connection to the country’s electricity grid.