Yaounde - Morocco's Platinum Power, a subsidiary of US private equity firm Brookstone Partners, plans to invest 500 billion CFA francs ($845.87 million) to build a hydroelectric project in Cameroon, the company said.
Platinum Power signed a framework public-private partnership agreement with the Cameroonian government on Wednesday to build a 400 megawatt capacity complex in Makay, in the country's Centre Region.
“Platinum plans to sell this renewable energy to ENEO,” Chief Executive Omar Belmamoun said, referring to Cameroon's national power utility company, which is majority owned by emerging markets equity firm Actis.
Construction will begin in 2017 with completion set for 2020.
The Central African nation suffers from a power deficit and regular blackouts. It currently produces about 1 200 megawatts of electricity.
But with a population of around 22 million, it will require output of around 3 000 megawatts by 2018 if it is meet its economic growth target of 9.5 percent, according to the country's monetary and finance committee.
Platinum Power, which focuses on the development, financing, construction, ownership and operation of utility-scale renewable energy projects in Africa, agreed in April to invest 450 billion francs to build a series of hydroelectric dams in Ivory Coast.
Belmamoun said the company was looking at other opportunities in Central Africa.
“Gabon interests Platinum and we got in touch in March 2015 with the Gabonese minister of energy and water resources,” he said.
Reuters