Thursday, May 22, 2008

US agency donates 600m for more power generation


Power outages may be curbed following grants by the US
government to the state of Cameroon to fund the expansion of the natural gas plant in Limbe and feasibility studies for the construction of a hydropower plant in Bini à Warak in northern Cameroon

By Ojong Steven Ayuk in Yaounde

Electrical power in Cameroon has always been in short supply but the issue waded into public discourse about six years ago when economically important urban centres started experiencing acute power shortages.

Recurrent promises and efforts by the Cameroon government and the monopoly electricity production company, AES-SONEL, have not yet solved the problem

It is against this background that Cameroonians have greeted recent grants by the US trade and development agency (USTDA) to fund more power generation capacity.

The grants totaling over 1.3 million US dollars (over 600 million FCFA) will be used to fund two major power expansion projects in Cameroon, notably the Limbe natural gas plant and studies for a hydro-power plant in Bini à Warak, in northern Camreoon. The Limbe
project will consume 695 thousand US dollars while the Warak studies will cost 662 thousand US dollars.

US ambassador in Yaounde, Janet Garvey, and Cameroon’s Minister of Energy and Water Resources, Jean Bernard Sindeu, signed the grants agreement at a ceremony in Yaounde on 16 May.

In her remarks at the signing ceremony Janet Garvey said that the expansion of power generation infrastructure is closely linked to Cameroon’s capacity for economic expansion and job creation.

Garvey said the grants reflected America’s commitment to work with the government and people of Cameroon as partners to bring development to the country.

USTDA regional representative for sub-Sahara Africa, Paul Marin, said the US agency seeks to advance economic development and US commercial interests in developing countries.

He said the USTDA chose to fund the Limbe and Warak projects because they are the top two power priorities of the government of Cameroon.

While the Limbe gas plant will help diversify power generation capacity and bridge seasonal power deficiencies, the Warak plant will provide supplies for both home consumption in northern Cameroon and exports to Chad and Nigeria, a USTDA release stated.

Bernard Sindeu expressed Cameroon’s gratitude to the US government for the gesture and prayed that the long and fruitful cooperation between both countries continues.

The projects will be executed by American contractors to be selected by the Ministry of Energy and Water Resources.

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