Cameroon will reimburse electricity firm Eneo a first tranche of FCFA 45bn

A veil has just been lifted over the outcome of negotiations conducted for several months between the State of Cameroon, Eneo and its suppliers over the liquidity crisis that is hitting the electricity sector .

“  As part of the consultations led by the Prime Minister, we must welcome the decision of the State of Cameroon to settle a first batch of certified invoices for a total amount of 45 billion FCFA (…) allowing the injection of fresh money in the sector,  ”reveals Éric Mansuy, managing director of the company controlled by the British investment fund Actis, in an interview with the online journal Énergie Médias and published on February 11, 2020.

“  This operation (…) will allow the partial discharge of the debts of the suppliers of energy and fuels and to ensure the regular supply of fuels  ”, explains the Frenchman, arrived at the head of the Cameroonian supplier of electricity in November latest. This payment should therefore ultimately reduce load shedding.

To meet demand, Eneo buys energy from independent producers. The company also makes regular use of thermal power plants. They run on fuel oil supplied by certain companies such as Tradex. However, due to a large volume of delinquencies, many of its energy and fuel suppliers have stopped supplying it, causing the current cuts. According to its own figures, at the end of 2019, Eneo owed more than 155 billion FCFA to its suppliers.

CHAN pressure

For its part, Eneo justifies its insolvency by the volume of arrears accumulated by its customers. According to its DG, at the end of 2019, the debt due to the electrician amounted to more than 180 billion FCFA of which 63 billion were held by public enterprises alone or with public capital.

According to Eric Mansuy, the 45 billion FCFA expected from the State will be mobilized on the public securities market of Beac. Cameroon should indeed issue assimilable Treasury bonds (OTA) for the cause. But the date of this operation was not indicated. However, we know that the country plans to raise, between January and March 2020, a global envelope of 305 billion FCFA on the public securities market of Beac, including 75 billion in OTA.

The CEO of Eneo wishes to see the operation succeed “  as soon as possible  ”. It must be said that energy-consuming events such as the CHAN (African Football Championship of Nations which will take place in Cameroon from 04 to 25 April 2020) are on the horizon.

 

Source: Agence Ecofin

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