The Multilateral Investment Guarantee Agency (Miga) is supporting three power sector projects in Cameroon.

Miga is providing guarantees of US$180mn to Energy Cameroon Coöperatief for its investment in the privatised national electricity utility Sonel. The eight-year insurance covers transfer restriction risk, war and civil disturbances, and breach of contract.

In addition, Miga is providing breach of contract cover for up to 20 years for Globeleq Africa, for its investments in the 216-megawatt (MW) Kribi gas-fired power plant and the Dibamba 88MW heavy fuel oil plant. Together these plants deliver more than 300MW to Cameroon’s power grid, representing almost a quarter of the counties current installed capacity. Globeleq plans to expand the capacity of the Kribi plant by 120MW.

Commenting on the arrangement, Miga vice-president and COO, Michel Wormser, says: “Our support complements long-standing technical and financial assistance for Cameroon’s power sector by the World Bank and International Finance Corporation.”