Kribi, Dibamba power plants get new owners

The CDC-Norfund consortium has taken over from Globeleq to ensure the production and sale of natural gas.

In June 2014, Globeleq, a leading independent power generation company in Sub-Saharan Africa acquired majority interests in more than 300 megawatts of generation capacity in Cameroon. The deal obliged Globeleq, a wholly-owned Actis company, to own and operate the 216 MW natural gas-fired Kribi and the 88 MW heavy fuel oil (HFO) Dibamba facilities.

One year on, the business deal has changed hands with Actis transferring Globeleq Africa to CDC and Norfund Consortium. Actis, the London-based company, announced on September 14, 2015, that “ Globeleq, a company owned by Actis, the pan-emerging market investor, has completed the sale and transfer of Globeleq Africa, the leading power generation platform in Africa, to a company owned by Norfund, the Norwegian investment fund for developing countries and CDC Group, the UK government’s development finance institution.” The transaction amount is worth 227 million dollars (about FCFA 125 billion).

Project Description

The new-found business deal now involves the acquisition, operation and potential expansion of the Dibamba HFO. From every indication, the Dibamba Power Development Corporation, DPDC is now 56 per cent owned by CDC and Norfund Consortium and 44 per cent by the government of Cameroon.

Energy of Cameroon, ENEO Cameroon S.A, is the sole off-take of energy produced by the DPDC as well as the Kribi Gas-fired Power Plant, KPDC. The concern now lays on whether Actis will also sell out or withdraw its shares from ENEO. It should be recalled that government shares (including ENEO) over the two plants amount to 44 per cent.

The transfer of the ownership and operation of DPDC and KPDC to CDC and Norfund comes in the wake of the application of the 2011 law on the electricity sector in Cameroon where emphasis is on ensuring its modernisation and development. Against this premise, the opening up of the sector to competition in segments of production and marketing has been made possible.

When Globeleq took over ownership of the plants, its plans were to expand the Kribi generating plant. Power has now changed hands within a short frame according to Torbjorn Caesa, Actis Senior Partner.

On September 14, 2015, he noted; “We are proud of what we have achieved over the past decade in terms of creating much-needed infrastructure in Africa. We are confident that CDC and Norfund, working as direct investors with Globeleq Africa’s management team, will successfully continue the work.”