Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Development of the Chollet hydroelectric site on the Dja River at the border between Cameroon and Congo, including construction of a dam, power plant, and associated transmission infrastructure to boost power generation capacity in both countries and enhance regional integration.
Objectives
Develop the Chollet hydroelectric potential to increase power generation capacity in Cameroon and Congo; establish a binational power project to enhance regional cooperation and integration; provide reliable electricity to support industrial and economic development in both countries; expand electricity access to underserved regions through associated transmission infrastructure; reduce dependence on fossil fuel generation; create employment and economic opportunities; and strengthen the power systems of both countries with clean energy resources.
Strategic Importance
The Chollet hydroelectric project represents a strategic binational initiative to harness shared water resources for the benefit of both Cameroon and Congo. By developing this significant hydropower potential, the project will enhance energy security, support economic development, and demonstrate the benefits of regional cooperation in Central Africa. The project will increase installed generation capacity in both countries, reducing dependence on more expensive and polluting thermal generation. The associated transmission infrastructure will strengthen grid integration and improve electricity access, particularly in currently underserved regions. As a cross-border project, Chollet exemplifies the regional integration vision promoted by the Central African Power Pool (PEAC) and supports the broader objectives of the Programme for Infrastructure Development in Africa (PIDA).
Technical Specifications
Technology & Design
The project will utilize conventional hydropower technology with a concrete gravity dam, surface powerhouse equipped with Francis turbines, spillway facilities, and associated balance of plant. Transmission infrastructure will include high-voltage lines (likely 225kV) extending to load centers in both countries.
Capacity & Size
Hydroelectric plant with installed capacity of approximately 600 MW; Dam height of approximately 65-70 meters; Reservoir with storage capacity designed for optimal power generation while minimizing environmental impacts; Associated transmission infrastructure including approximately 500-600 km of high-voltage lines in both countries
Technical Details
Dam specifications: Concrete gravity dam with height of 65-70m; Powerhouse: Surface powerhouse with Francis turbines; Installed capacity: 600 MW; Transmission: 225kV lines with modern substations; Control systems: Automated control with integration to national dispatch centers; Environmental flow provisions: Minimum flow requirements built into operational protocols
Development, Implementation & Financial Details
Development Timeline
Feasibility studies (2016-2024); Transaction structuring and financing (2024-2026); Construction and implementation (2026-2032)
Latest Implementation Updates
UPDATEDFinancing Structure
The project will utilize a binational financing approach combining: sovereign loans from multilateral development banks (AfDB, World Bank); bilateral financing from development partners; equity contributions from the governments of Cameroon and Congo; and potentially private sector participation through structured PPP arrangements. A Special Purpose Vehicle (SPV) will likely be established for project implementation and operation.
Capital Structure
Preliminary capital structure envisions approximately 25% equity (primarily from both governments with potential private participation) and 75% debt through concessional and commercial financing. The exact structure will be finalized through the ongoing transaction structuring process.
Project Timeline
Start Date
January 2016
Expected Completion
December 2032
Development Timeline
Feasibility studies (2016-2024); Transaction structuring and financing (2024-2026); Construction and implementation (2026-2032)
Project Status History
Status 2022
Pre-Feasibility
Status 2024
Feasibility
Additional Project Details
Preparation Funding Gap
USD 18.00M
Construction Timeline
Site preparation and access infrastructure (2026-2028); Main dam and powerhouse construction (2028-2031); Transmission line construction (2029-2032); Commissioning and testing (2031-2032)
Legal & Financial Advisors
Tractebel Engineering providing technical advisory services; legal and financial advisory services to be appointed
Market Analysis
Market Analysis
Both Cameroon and Congo face growing electricity demand but have constraints in generation capacity and grid infrastructure. Cameroon's electricity demand is growing at 7-8% annually, while Congo faces similar growth rates particularly in major urban centers. Both countries currently rely significantly on thermal generation, creating opportunities for cost reduction through hydropower development. The project's sizing at 600 MW aligns with the projected medium-term demand growth in both countries.
Market Demand
The 600 MW Chollet hydroelectric plant will serve markets in both Cameroon and Congo, with potential for future exports to other countries in the Central African region. The demand in both primary markets exceeds the project's capacity, ensuring full utilization of the generated power.
Key Stakeholders
Project Sponsor
Governments of Cameroon and Congo through the Binational Agency for the Development of the Chollet Hydroelectric Complex (ADCC)
Key Parties
Ministry of Water Resources and Energy (Cameroon), Ministry of Energy and Hydraulics (Congo), Electric utilities of both countries (ENEO and SNE), Central African Power Pool (PEAC), Binational Agency for the Development of the Chollet Hydroelectric Complex (ADCC)
Investors
African Development Bank, World Bank, China Exim Bank, French Development Agency (AFD), Development Bank of Central African States (BDEAC)
Contractors & Operators
To be determined through international competitive bidding following project structuring
Risk Assessment
General Risk Assessment
Major risks include: complex coordination between two countries; potential geopolitical factors affecting binational cooperation; technical challenges in a remote location with difficult access; environmental and social sensitivities in a biodiverse region; financing complexities for a large cross-border project; and commercial risks related to offtaker creditworthiness. Risk mitigation strategies include robust binational institutional frameworks, phased implementation, structured contracts with appropriate risk allocation, and potentially credit enhancement mechanisms.
Regulatory Risks
The project will require harmonization of regulatory frameworks between Cameroon and Congo, particularly regarding tariff setting, environmental standards, and water resource management. A binational treaty has been signed to establish the framework for project development and operation, including regulatory aspects. This provides a solid foundation, though implementation details will require ongoing coordination.
Impact Assessment
Environmental Impact
The project will require comprehensive Environmental and Social Impact Assessments in both countries in accordance with national regulations and international standards. Key environmental considerations include: impacts on the Dja River ecosystem which contains significant biodiversity; potential impacts on protected areas in the vicinity; land use changes in the reservoir area; and climate considerations including both resilience aspects and carbon emissions reduction benefits. Environmental management plans will include measures for habitat protection, species conservation, and potentially biodiversity offsets.
Social Impact
The project is expected to generate approximately 3,000 direct jobs during construction and 300-500 permanent jobs during operation. Social benefits include improved electricity access in both countries, potential for local economic development through reliable power supply, and infrastructure improvements including access roads in currently remote areas. Potential negative impacts including resettlement will be addressed through comprehensive management plans developed in accordance with international standards.
Investment Opportunities
Private Sector Opportunities
Significant opportunities exist for private sector participation in: potentially the power generation component through IPP or PPP structures; EPC contracting for dam, powerhouse, and transmission construction; equipment supply for hydropower and transmission components; operations and maintenance services; and ancillary infrastructure development.
Next Steps & Agreements
Next Steps
Complete comprehensive feasibility studies; finalize environmental and social impact assessments; establish appropriate binational implementation structures; develop transaction structure and financing plan; secure financing commitments; initiate procurement processes for major contracts
Offtake Agreements
Binational Power Purchase Agreements will be established with the national utilities of both countries (ENEO in Cameroon and SNE in Congo), with clear provisions for sharing costs and benefits. The tariff structure and terms will be determined during the transaction structuring phase.
Contact Information
Binational Agency for the Development of the Chollet Hydroelectric Complex (ADCC), Email: info@adcc.org
