ENEO and Government review their contract

The Cameroonian Government and the electricity operator Eneo proceeded to modify the concession and licence contract through a new framework, we learned Saturday.

Eneo will thus be committed to achieve within a period of three years, emergency work on the hydroelectric dam of Song Loulou, the most important of the country, for an amount estimated at 11 billion CFA FRANCS.

A joint technical Committee will be to that effect implemented for tracking of said construction, validate additional works and offer technical and financial arrangements for their realization.

The State and the operator also agreed on the principle for the transfer of dam reservoirs to the heritage company of Electricity Development Corporation (EDC), the assignment of the activity of transport and transport network management at a company with public capital.

Early February, the Cameroonian Ministry of water and energy (MINEE) had launched a notice of solicitation of expressions of interest for the recruitment of a consultant for the technical support for the operationalization for the management of public transport electricity Network (GRT).

The parties, through this 2nd amendment, agreed on the establishment of new standards of quality of service and quality measures of the service, as well as an appropriate tool to identify and follow the link between the level of investment and maintenance and said quality of service standards.

Regarding the objectives of connections, they will now be divided by region and should be included in the annual business plan submitted to the electricity regulatory agency (ARSEL), which Eneo will present each year a detailed report on the realization of the related work.

With regard to the tariff regime the new integrated endorsement, in concession contracts, a detailed clause implementing the mechanism of adjustment on the basis of a control formula of income allowing the implementation of a multi-year formula in place of the mechanism of annual increase prevailing hitherto.

Semi-public company 56% owned by the English investment fund, Actis and 44% by the State of Cameroon, Eneo has since May 23, 2014, took over national electricity company (SONEL) of Cameroon from the American AES-Corporation. It currently has an installed capacity of 999 megawatts, a network of transport of some 32.235 kilometres for 3698 permanent employees.

Eneo has also recently committed to mobilizing 3700 billion CFA FRANCS over 10 years, necessary for the strengthening of the supply of electric energy in Cameroon.