YAOUNDE (Reuters) - Cameroon has reached financing agreements totalling 52.89 billion CFA francs with two regional banks for the construction of the Lom Pangar hydroelectricity project, a decree signed by the government said on Wednesday.
The agreements follow a $132 million zero-interest loan approved by the World Bank on Tuesday towards the construction of the dam.
Cameroon is the region’s biggest economy and the world’s fifth-largest cocoa producer, but its economic growth, seen at 5.5 percent this year, has underperformed regional peers due to its lack of infrastructure, analysts have said.
The government of Cameroon has said it plans to spend about $12 billion to increase electricity output from 1,000 MW to 3,000 MW by 2020.
The loans from the African Development Bank and the Development Bank of Central African States will go towards the construction of a 30 MW hydroelectricity plant, transmission lines and power distribution in the East region of the country, the degree ratifying the accords said.
China International Water and Electric Corporation was awarded a contract last May to build the dam within 38 months.