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Kribi
Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Project number 25978
Country
Cameroon
RegionSub-Saharan Africa
SectorGas - Thermal Power Generation
Department
Company nameKPDC
Environmental category:A
StatusActive
Date ESRS disclosedApril 2, 2010
Previous EventsInvested: September 10, 2012
Signed: December 22, 2011
Approved: November 10, 2011
View Summary of Proposed Investment (SPI), click here

OverviewCategory &

Applicable Standards
Key Issues

& Mitigation
Community/

Engagements
Availability

of Full

Documentation

Overview of IFC's scope of review
Kribi Power Development Company (“KPDC” or the “Company”), an affiliate of AES Sonel, the privatized integrated national electric utility of Cameroon, is developing a 216 MW reciprocating engine gas-fired thermal power plant and 100 km 225 kV double circuit transmission line (“Kribi” or the “Project”).

IFC’s review of the Project consisted of appraising technical, environmental and social information submitted by KPDC and AES Sonel, including the Environmental and Social Impact Assessment (“ESIA”) reports, the Community and Indigenous Peoples Plan (“CIPP”), and the Resettlement Action Plan (“RAP”). Furthermore, the review included the ESIA for the gas pipeline from Bipaga to Mplongwe (near Kribi) as well as the draft guideline RAP submitted by Société Nationale des Hydrocarbures (“SNH”: the national petroleum company).

IFC’s appraisal team had interviews with: the KPDC project team in charge of environmental and social assessment and management; the environmental assessment team of the consulting firm (Scott Wilson) retained by KPDC; and the officers from Health Safety and Environment (“HSE”) Department of AES Sonel.

The appraisal also included: field visits to the Kribi site, the transmission line corridors, the Central Processing Facility site of the Sanaga Sud gas project, and the route of the gas pipeline from this facility to the Kribi site; interactions with Project-affected peoples at the Kribi site and along the transmission line corridor, including indigenous Bakola communities; and meetings with SNH and Perenco officers in charge of environmental and social assessment and management of the Sanaga Sud gas project.

IFC has also reviewed environmental and social information related to the gas field development project including its ESIA report. Having visited the area of the Sanaga Sud gas project, IFC conducted additional biodiversity review of the Sanaga Sud gas field project area.

Note: An ESRS for Kribi was disclosed on February 20, 2008 with the Kribi component E&S documents. On April 25, 2008, the ESRS was updated with the Dibamba component E&S documents. Subsequently, the consideration of financing for the Dibamba project was considered separately. Furthermore, additional information has become available about the proposed gas pipeline from the Sanaga Sub Gas Processing Facility to the Kribi site. This gas pipeline is considered an associated facility under PS 1, and the additional information represented a material change in the Project description. Thus, this new ESRS has been prepared, with Kribi again considered as a single component project.
Project description
KPDC is developing a new 216 MW reciprocating engine gas-fired thermal power plant, located near Mpolongwe village, about 9km north east of the coastal city of Kribi in the South Province of Cameroon, and a new 100 km 225 kV double circuit transmission line between the Kribi plant and the existing Mangombe 225/90 kV substation at Edéa in the Littoral Province.

Perenco, in partnership with SNH, is developing an offshore Sanaga Sud gas field project (" Sanaga Sud gas project”) to supply natural gas to the Kribi 216 MW reciprocating engine gas-fired thermal power plant. The Sanaga Sud gas project includes drilling of two production gas wells offshore, development of an onshore 3 ha Central Processing Facility (“CPF”) to be located within a 25 ha site at Eboudawaé village, a 16 km offshore pipeline from the two wells to the CPF, and a 18 km pipeline from the CPF to the Kribi plant. These elements are collectively called the “Sanaga Sud gas facility” or “Sanaga Sud gas project”. KPDC will receive gas from SNH through a gas supply agreement. Although the Sanaga Sud gas facility is not funded as part of the Project, Kribi is expected to be the main gas off-taker, at least during initial years of operation, and reliable supply of gas is important for optimal operation of Kribi.

The Kribi plant will use reciprocating engines with gas as main fuel and diesel as a back-up fuel. The 100 km 225 kV Kribi-Edéa transmission line corridor needs a 30m width for the right of way (“ROW”), 15m either side of the center of the power line. The transmission line towers to be built will be 26 to 40m in height, and will be built with average 350m spacing.

IFC is considering providing up to Euros 35 million loan to KPDC. Other participating lenders are expected to include EIB, AfDB, BDEAC, Proparco, FMO and local Cameroonian banks. The Cameroonian banks expect to be supported by a partial risk guarantee (“PRG”) from the World Bank for the Kribi project.

AES Sonel has currently 933 MW generating capacity, of which 721 MW is hydro and 212 MW is thermal. The new thermal power plants are expected to (i) help diversify the hydro-dominated generation capacity of the country, (ii) add additional generation capacity to meet the growing electricity demand by the residential, commercial and industrial customers, and (iii) increase the reliability of the electricity supply system, especially during the dry season, by optimizing the hydro generation. Out of the additional thermal generation capacity by the Project, up to 50 MW may be provided to Alucam, the single largest industrial electricity customer of the country, to support the expansion plan for their aluminum production.

KPDC was established as Cameroon’s first independent power producer (“IPP”) to develop two thermal power plants. Electricity produced by KPDC will be sold to AES Sonel for distribution to customers through a power purchase agreement between the two for Kribi.

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