Since 2018, STOA has been investing in the construction of a major hydroelectric dam in Cameroon. The project, led by the Cameroonian Nachtigal Hydro Power Company, will help develop the country’s electricity supply.

The project

In December 2018, STOA acquired a 10% stake in the Cameroonian Nachtigal Hydro Power Company (NHPC), alongside Electricité de France (EDF), the Cameroonian government, the International Finance Corporation (IFC), and Africa 50. The objective is to design, build, finance, operate and maintain a 420 MW hydroelectric dam on the Sanaga River located at Nachtigal Falls, a village 65 km northeast of the capital Yaoundé. The construction of a 50 km power transmission line to Nyom is also planned.

What’s at stake

A groundbreaking project in Africa

In February 2019, this initiative received the award for the best global project in the field of multilateral finance structuring, presented by Project Finance International magazine, a Thomson Reuters publication. Upon its commissioning – scheduled for 2023 – Nachtigal will be the largest dam ever developed in Africa in project financing terms, for a total cost of 1.2 billion euros. It will help meet the growing demand for electricity in Cameroon by supplying 30% of the country’s needs, while generating energy at a competitive cost. This low-carbon solution will also play a decisive role in the country’s energy transition. In the long term, nearly 850 000 tons CO₂ eq will be avoided each year nationwide.

Ambitious risk management

The project’s environmental and social risks are managed through a pioneering management system. This includes in particular a local economic development action plan and measures dedicated to biodiversity based on the IFC Performance Standards. The aim is not only to protect, but also to avoid, reduce and offset the negative impacts of the project during the construction and operation phases.

With the support of the IFC and specialized NGOs, NHPC has trained its staff in the prevention of gender-based violence. In 2019, the company had 29% female employees, making it a flagship project in the infrastructure world.

Expected results

• 420 MW of hydropower by 2024
• 30 % of national electricity production, or nearly 8,5 million people in Cameroon
• 845k tCO₂eq emissions avoided per year [1]

Impact results measured in 2021

• 3 227 direct jobs supported by the end of 2021 [2]

[1] Emissions calculated using the AFD’s carbon balance method, based on total installed capacity and projected estimates over the life of the project.
[2] Modeled impact (see our Impact Report on p. 25). View our disclosure statement : Signatories & Reporting | Operating Principles for Impact Management (impactprinciples.org)

Key figures

• 35 years of electricity production
• 10% equity investment from STOA

” Nachtigal is a major hydroelectric project for the Government of Cameroon, and EDF is proud to be the reference company working alongside leading partners such as STOA to ensure its development. Built and operated according to the highest social and environmental responsibility standards, this 420 MW facility will increase Cameroon’s electricity production capacity by 30%, thanks to energy that is both competitive and low carbon. Nachtigal will also be the largest hydroelectric facility developed on the African continent in project financing terms. Our aim is to establish Nachtigal as a model for the development of new projects in Africa and elsewhere in the world, and to build a long-term partnership with STOA.”

Jean-Bernard Levy – Chairman and Chief Executive Officer – EDF