Cameroon wants to obtain $ 73 million from the EIB and the EU, for the financial closure of the Rural electrification and access to energy project in under-served areas in Cameroon (Perace ). 585 of the 687 localities affected by the project are located in the northern regions.

According to the Ministry of Water and Energy, the Cameroonian government is currently finalizing negotiations with the European Investment Bank (EIB) and the European Union (EU), with a view to the financial closing of the Rural Electrification Project and access to energy in underserved areas in Cameroon (Perace).

Established in the Far North, North, Adamawa, North West, South West and East regions, Perace will extend over the period 2020-2026, and will allow electrify 687 localities across the country. The overall cost of this rural electrification project is estimated at 223.5 million dollars (131 billion FCFA).

The current negotiations with the EIB and the EU cover a budget of 73.5 million dollars (nearly 43 billion FCFA). This sum will complement the 150 million dollars (nearly 88 billion FCFA) already made available by the World Bank.

The funding provided by this Bretton Woods institution, we learned officially, will electrify 417 localities in the Far North, East, North West and South West regions. While the funding expected from the EIB and the EU will be used to implement the same project in the North (200 localities) and Adamaoua (70 localities).

According to the Cameroonian authorities, Perace not only aims to reduce the gap between the rate of electricity coverage in Cameroon (74%) and the rate of access to electrical energy in the country (around 50%), but also to increase the service to certain regions still lagging behind.

Indeed, revealed the Minister of Economy on June 12, 2020 in Yaoundé, the coverage rate in certain Cameroonian regions is still below 50%. This is the case for the Far North, which claims an electricity coverage rate of only 46%. Ditto for his sister from the North. Adamaoua, the other region in the northern part of Cameroon, has a coverage rate of 52%, well below the 74% recorded elsewhere.

It is with this reality that Perace, a project whose owner is the Rural Electrification Agency (AER), will benefit 86% in the northern regions of Cameroon. Indeed, we reveal to the Ministry of Water and Energy, out of the 687 localities in Cameroon targeted by Perace, 585 are located in the three northern regions, which are officially the poorest in Cameroon.

 

Source: Agence Ecofin

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