AES-Sonel S.A

In 2003 EAIF provided a US$ 30 million medium term loan to AES-Sonel S.A. in Cameroon. The US$ 30 million was part of an overall US$ 60 million facility arranged by EAIF to finance the construction of an 85 MW heavy fuel oil power plant at Limbe adjacent to the Sonara Oil Refinery costing US$ 75 million.

The purpose of the plant is to provide contingency cover for Cameroon’s hydro-electric generation during the dry season following significant load shedding due to low rainfall in the 2000/2001 and 2001/2002 dry seasons.

The EAIF facility was provided as follows:
Medium Term Loan - US$ 30 million over 10-years (including 2-year grace period).

The facility is intended to be the first part of a larger financing arrangement to fund AES-Sonel’s overall capital expenditure plans totalling US$ 530 million.

The benefits of a much more reliable electricity supply to the broad population are clear. There are also significant benefits to the promotion of industrial and commercial investment in Cameroon.

The success of the project will also act as a role model for the larger investments Cameroon requires in its electricity generation and supply infrastructure.