Cameroon: Nachtigal Hydropower Co-03
Case Tracker
Complaint Overview
Farmers from an impacted village
Insufficient compensation of land acquisition
Project Information
€60 million and an A Loan of up to €130 million
Synopsis
The Nachtigal project is a greenfield 420-megawatt run-of-river hydropower project on the Sanaga River near Yaoundé, Cameroon. The site is located downstream from the Lom Pangar regulating dam. The project is the first independent power producer on the Sanaga River, with the Republic of Cameroon granting a 35-year concession to the project company.
IFC supports the Nachtigal Hydropower Project through an equity investment of up to €60 million and a category A loan of up to €130 million. MIGA is also supporting the project through guarantees of up to €164.5 million covering Electricité de France (EDF) and STOA—a French investment fund—equity and quasi-equity investment in the project. Guarantees are issued for up to 15 years against the risk of breach of contract.
In January 2024, CAO received a complaint submitted by residents of a village affected by the activities of the project, as a transmission line is going to pass through crops and homes of residents, which will result in an acquisition of their homes and lands. The complainants cited the following issues: i) lack of information and consultation regarding the high-voltage line passing through their agricultural lands; ii) land loss and destruction of crops and agricultural land as complainants state that agricultural lands will be affected in one case, and in some cases destroyed, due to the high-voltage line passing through their area; and iv) insufficient compensation proposed as complainants believe that it does not adequately account for all their assets used for sustenance and livelihoods.
In October 2023, CAO found the complaint eligible for assessment. The assessment process is now ongoing.
The case is currently in Assessment.
Status as of May 2, 2024.