British firm Savannah Energy has signed a Memorandum of Agreement (MOA) with the Government of Cameroon for the development of the Bini a Warak Hydroelectric Project, a 75MW facility located in the northern Adamawa Region of Cameroon.

The Bini project is expected to provide clean, stable and affordable power to Cameroon’s northern region, supporting both existing local electricity demand and enabling a number of energy-intensive industrial projects, principally in the cement and metallurgy industries. The project will also increase current on-grid electricity generation capacity in northern Cameroon by over 50%.

The project involves the construction of a dam on the Bini River, together with an 82km2 reservoir and associated tunnels, powerhouses, substations, and a 225kV transmission line connecting the project to Cameroon’s northern electricity grid. The project is intended to be developed on an independent power project basis with project sanction expected in 2024 and first power targeted in the 2027 to 2028 window.

Under the terms of the MOA, Savannah plans to supplement existing feasibility studies and work with power industry authorities and development finance institutions to finalize the development, financing and resumption of construction of the Bini Project. Savannah expects to fund the Bini Project from a combination of its own internally generated cashflows and project-specific debt.

Gaston Eloundou Essomba, the Minister of Water and Energy for the Republic of Cameroon, said: “The decision to invest in the Bini Project is a clear indication of the confidence Savannah has in our country’s potential and our legal frameworks for investment. As a government, we will provide all the support needed to enable Savannah to deliver first power from this exciting project in the 2027 to 2028 window.”

Andrew Knott, CEO of Savannah Energy, added: “The Bini Project is expected to provide clean, stable and affordable power to northern Cameroon that will support both households and industrial projects in the region. We look forward to working with the Government of Cameroon and our intended developmental finance partners as we move this project through the development and construction phases towards the intended first power in 2027 to 2028. As a company, Savannah is seeking to continue to expand in Cameroon and we will continue to review other potential investment opportunities in the energy sector. We expect the Bini Project will make a key contribution towards the attainment of Savannah Group’s targeted 1GW of renewable energy projects in motion by the end of 2023.”

The Bini a Warak project is expected to address the current electricity shortages caused by the hydrology deficit of the Ladgo Dam and reduce the consequent reliance on expensive thermal-generated power in the region.