Yaounde, Cameroon Africa. (Cameroon News) – President Paul Biya of Cameroon has authorized the Minister of Economy, Planning and Regional Development, Emmanuel Nganou Djoumessi to sign a loan agreement of FCFA 32.89 billion with the African Development Fund to finance the construction of a hydro-electricity plant at the foot of the Lom Pangar Dam in East of the country.

The decision is contained in a presidential decree signed on December 18, 2011.

The Board of Directors of the African Development Fund approved the loan on November 10, 2011. The hydro- electricity plant to be constructed will produce 30 Mega watts of electricity to supply the East and Adamawa Regions.

The African Development Fund and the Development Bank of Central African States (BDEAC) are partners dedicated to financing the construction of the hydro-electricity plant, the transmission line and distribution of energy, the Director General of the Electricity Development Corporation, Theodore Nsangou said in an interview in the government bilingual daily newspaper, Cameroon Tribune of December 20, 2011.

The BDEAC Board of Directors approved the funding of FCFA 20.30 billion in September 2011, he said.

The World Bank, European Investment Bank and the French Development Agency are donors to finance the construction of the Lom Pangar dam proper, Theodore Nsangou disclosed.

Cameroon Electricity Companies - AES SONAL

These finance institutions have to respectively contribute FCFA 38.85 billion, FCFA 42.80 billion and FCFA 21.40 billion, while Cameroon’s contribution stands at FCFA 35.57 billion.

Effective construction work of the Lom Pangar Dam estimated at between FCFA 180 to 190 billion, Theodore Nsangou said, will start from February or March 2012. He stated that Cameroon’s contribution is ready, raised through the sale of treasury bonds.

Construction of the Belebo-Lom Pangar road is on course, as well as the bridge over the Lom river that will pave the way for the dam project to kick off, he disclosed.