Cameroon: Nachtigal Hydropower Co-01

Date Filed
09 May 2022
Status
Open
Phase
Dispute Resolution (DR)
Country
Cameroon

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Case transferred to Dispute Resolution on Nov. 01, 2022 October 31, 2022
Compliance
CURRENT Status
Mediation (DISPUTE RESOLUTION)
Case transferred to Dispute Resolution on Nov. 01, 2022 October 31, 2022

Complaint Overview

Complainant

IFI Synergy Platform on behalf of nearby communities.

Concerns

Environmental and social concerns, loss of livelihoods, insufficient and late compensation, inadequate stakeholder consultations, improper and inadequate implementation of physical resettlement, relocation and destruction of sacred sites, increase in negative social issues, inadequate grievance redress mechanism processes, and impacts on agriculture.

Cross-Cutting Issues
Access to Information Policy Air Biodiversity Children Climate Change Impacts Cultural Heritage Community Health and Safety Gender Based Violence and Harassment Land Land Resettlement Loss of Livelihoods Risk Management Social Order / Conflict Water Women

Project Information

Region
Africa
Institution
IFC/MIGA
Name & Number
Nachtigal Hydro Power Project - 37673 (IFC), Nachtigal Hydro IPP - 13075 (MIGA)
Company
Nachtigal Hydropower Company (IFC Client) and Electricité de France—EDF (MIGA Client)
Sector
Infrastructure
Department
Infrastructure
Category
A
Commitment

IFC supports the Nachtigal Hydropower Project through an equity investment of up to €60 million and an A Loan of up to €130 million.

Synopsis

Project Overview

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 in the Sanaga river. The Republic of Cameroon granted a 35-year concession to the project company. According to IFC disclosures, the total project cost is estimated at €1.1 billion, financed with  €0.8 billion in debt and €0.3 billion in equity.

IFC supports the Nachtigal Hydropower Project through an equity investment of up to €60 million and a category n A Loan of up to €130 million. According to IFC Disclosures, IFC planned to mobilize the rest of the debt package from other Development Finance Institutions (DFI) under its role as a global coordinator.

MIGA is supporting the project through guarantees of up to 164.5 million covering Electricité de France (EDF) and STOAa 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.

Complaint

In April 2022, Green Development Advocates lodged the complaint on behalf of communities living near the Nachtigal Hydropower Project. Green Development Advocates is a non-governmental organization (NGO) serving as the secretariat of IFI Synergy Platform, a network of NGOs based in Cameroon. The complaint raised environmental and social concerns including: inadequate stakeholder consultations, loss of income-generating activities for fishermen, sand extraction workers, and fish traders, insufficient and late compensation to the people in the affected communities that were compensated, improper and inadequate implementation of physical resettlement, relocation and destruction of sacred sites, increases in negative social issues including theft, juvenile delinquency, gender violence and certain diseases, environmental impacts (scarcity of rain, fish and healing plants, temperature increases and CO2 emissions above the project’s ESIA forecast), inadequate grievance mechanism, and impacts on crops outside of the initially designed project area covered by the environmental and social impact assessment, for which such neighboring communities have not been compensated. The complainants have also filed complaints in the African Development Bank Independent Recourse Mechanism and the World Bank Accountability Mechanism.

CAO Action

CAO found the complaint eligible for further assessment on May 6, 2022. From May 6 to October 31, CAO conducted an assessment of the complaint. During the assessment period, both the Complainants and NHPC have agreed to participate in a dispute resolution process. CAO will therefore transfer the complaint to CAO’s Dispute Resolution function, as per CAO’s policy.

CAO will facilitate the dialogue process, including assisting the Parties to prepare for dialogue, agreeing on ground rules and a framework for mediation, working together in a collaborative way to resolve the environmental and social issues raised in the complaint, and contributing to improved outcomes on the ground.

In doing so, CAO will closely coordinate with other independent accountability mechanisms (IAMs) of other Development Finance Institutions (DFIs) who have also received similar complaints.

The assessment report is now available in English under the “Case Documents” section below this page.

Status

On October 31, CAO completed its assessment, and the case was transferred to the Dispute Resolution function.

Status as of November 1, 2022

Case Documents

  • Complaint & Assessment

    Complaint
    CAO Complaint - Nachtigal Hydropower Co-01 - Cameroon
    Jan 11, 2022
    French - Français
    CAO Complaint - Nachtigal Hydropower Co-01 - Cameroon
    Assessment Report(s)
    CAO Assessment Report - Nachtigal Hydropower Co-01 - Cameroon
    Nov 01, 2022
    English
    CAO Assessment Report - Nachtigal Hydropower Co-01 - Cameroon