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Sustaining Investment and Growth Hilton, Yaoundé, Cameroon: 16-19 June 2009 3rd Cameroon Investment Forum 2009 and International Investor Day Business Action Against Corruption: High Level Panel Discussion Sponsored By:

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Page 1: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Business Action Against Corruption:

High Level Panel Discussion

Sponsored By:

Page 2: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Forum Partners:

EurOil Limited

Lead Partner:

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Page 3: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Strengthening the Investment Climate: Creating an Enabling Environment

Page 4: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Chair:Prof. Steve GodfreyManaging DirectorCommonwealth Business Council

Page 5: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Koosum KalyanDirectorMTN Group

Page 6: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Soji ApampaChief Executive OfficerConvention on Business Integrity

Page 7: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Akere MunaVice-ChairTransparency International

Page 8: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

HE Amadou AliVice- Prime MinisterMinister of Justice, Cameroon

Page 9: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Launch of the Cameroon Investment Project Register

Sponsored By:

Page 10: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Development Funding: Access to Finance, Building Infrastructure & Business

Enterprises

Page 11: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Chair: Mathieu MandengManaging DirectorStandard Chartered, Cameroon

Page 12: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Thokoane TsoloHead- Africa UnitIndustrial Development Corporation

Page 13: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Racine KaneChief Country EconomistAfrican Development Bank

Page 14: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

HE Essimi MenyeMinister of FinanceCameroon

Page 15: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

The Mining Industry and Investment Prospects in Cameroon

Page 16: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Chair: Richard HoweManaging DirectorGeovic

Page 17: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Don LewisChief Executive OfficerSundance Resources

Page 18: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Dr Fuh Calistus GentryDeputy Minister of Industry, Mines & Technological DevelopmentCameroon

Page 19: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Creating Public -Private Partnerships to Improve Business Environment

Page 20: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Chair: Tagbo AgbazueDirectorAfrican Institute of Corporate Citizenship

Page 21: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Jean –Michel LatuteChief Executive OfficerOrange, Cameroon

Page 22: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Christophe EkenPresidentChamber of Commerce

Page 23: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Moise EkediPermanent SecretaryCameroon Business Forum, IFC

Page 24: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

HE Amadou AliVice- Prime Minister, Minister of Justice Cameroon

Page 25: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

HE Essimi MenyeMinister of FinanceCameroon

Page 26: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Growth from Employment Creation

Page 27: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Chair: Christain Penda EkokaInternational ConsultantBusiness Development Service Cameroon

Page 28: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Foning FrancoisePresidentGroup of Cameroon Business Women

Page 29: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Prof. Laurent Serge Etoundi NgoaMinister of Small & Medium Size Enterprises, Social Economy & HandicraftCameroon

Page 30: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Public Private Partnerships : Accelerating Infrastructure Development

Page 31: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Chair: Dr. Diane Acha – MorfawSolicitor & Barrister at LawBellah Chambers

Page 32: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Pascal CollangeCountry DirectorAgence Française de Développement

Page 33: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Working for a Sustainable

and Inclusive Recovery :

the case of PPP

Cameroon Investment Forum

June 2009

Page 34: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Plan

• 1° What is AFD ?• 2° Our strategy to foster PPPs

• 3° Examples of PPPs in Cameroun

• 4° Other information about AFD

Page 35: 3rd Cameroon Investment Forum 2009_Holding Slidesj

In 2008, AFD developed solutions to help

developing countries withstand crises

Economic, Energy

And Food Crises

Security Crisis

Climate Change Crisis

Social Crisis

THE NEED FOR A SUSTAINABLE AND INCLUSIVE

RECOVERY

Solutions Offered:

Funding Liquidity, Terms, Rates and Risk-sharing

“Green” and “Inclusive” Investments a Priority

Page 36: 3rd Cameroon Investment Forum 2009_Holding Slidesj

New funding vehicles will address the crisis

• Highly-subsidized counter-cyclical loans

• Guarantees for bond issues

• Project to generate new sources of funding through new

savings and investment products for the general public

that would be used to finance development projects

Page 37: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Carry out the French President‟s “Initiative

for Africa” by supporting private enterprise

• PROPARCO increased its capital base to €500 million

and will triple its financing level to €4 billion over the

next five years

– A platform for private and public investors

• Creation of the €250 million FISEA Fund to invest in and

support African businesses

– Aims to create more than 100,000 jobs in Africa

• Creation of the ARIZ II Facility for AFD to guarantee up

to €750 million in loans

– In 2008, ARIZ II backed €75 million of new investments and

approximately 6,000 employees

Page 38: 3rd Cameroon Investment Forum 2009_Holding Slidesj

AFD holistic approach to development

40%

30%

63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2004 2008 2011 Target

Economic Growth

Global Public Goods

Millennium Development Goals

AFD’s Commitments’ Direct Contribution to Strategic Development Goals

Page 39: 3rd Cameroon Investment Forum 2009_Holding Slidesj

A global vision underpins

AFD‟s three strategic goals

Protecting Global Public GoodsNational SolidarityInternational Solidarity

Page 40: 3rd Cameroon Investment Forum 2009_Holding Slidesj

AFD commitments reached €4.5 billion, of

which €1.56bn for Africa in 2008

€ 598

Mn

€ 789

Mn

Page 41: 3rd Cameroon Investment Forum 2009_Holding Slidesj

• 1° What is AFD ?

• 2° Our strategy to foster PPPs• 3° Examples of PPPs in Cameroun

• 4° Other information about AFD

Page 42: 3rd Cameroon Investment Forum 2009_Holding Slidesj

AFD‟s PPPs strategy

• AFD believes in the implementation of public

policies by the private sector all over the world

• AFD does not believe in a « one size fits all »

solution

• AFD supports and finances PPP designed to

fit specific situations with includes both

regional and sector-based specificities

• 5 examples in Cameroon

Page 43: 3rd Cameroon Investment Forum 2009_Holding Slidesj

• 1° What is AFD ?

• 2° Our strategy to foster PPPs

• 3° Examples of PPPs in Cameroun• 4° Other information about AFD

Page 44: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Railways in Cameroon

• Private contract to run a public service

– Railway investment paid by Camrail (loan from AFD and EIB)

– Locomotives and cars paid by Camrail (loan from Proparco)

– Goods traffic is profitable but limited by physical capacity

– Passenger traffic is subsidised

– It works properly but pace of investment is too slow

• Amendment in 2008

– Railway investment paid by the State (loan from World Bank)

– Locomotives and cars paid by Camrail (loan from Proparco ?)

– Increased investment in infrastructure and cars will increase

transport capacity for goods

Page 45: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Water sanitation in Cameroon

• Creation of a public company that owns State

assets (Camwater)

• International bid to lease the network to a private

company. Moroccan CDE won and operates

technical and commercial issues

• Loans from European EIB and AFD to State /

Camwater to rehabilitate pipes, increase water

production and extend distribution network in

Yaounde and three regional towns

Page 46: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Power generation and delivery in Cameroon

• Private contract to run a public service– AES Sonel operates power generation, transportation and

delivery in Cameroon

– AES invests in power production up to a cap (1 000 MW) above which a new biding process is required

• Creation of EDC, a public company that owns State assets in the power sector– Property transfer to be organised

• Autoproducers are allowed, as well as private power producers which would sell to AES Sonel or big power consumers

• Proparco lends to AES Sonel and future private producers

• AFD is ready to lend to EDC subsidiaries

Page 47: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Dam to regulate river flows

• Although access to energy is an issue, only 3% of Cameroonian hydropower potential are currently equipped

• The Lom Pangar Dam will regulate the Sanaga river which will both increase the production of existing hydropower plants and enable the building of new hydropower capacity

• Estimated cost : 130-150 M€ including social and environmental aspects (30 to 50 M€), but excluding pipe line adaptation and hydropower generation

• Strategic infrastructure managed as a “cost centre” that will trigger investments in hydropower and industry (mainly power consuming aluminium production)

• Possibility of a “water tax” for the State (not considered for now)

• Creation of a public company (subsidiary of state owned EDC) that will sell water rights to private power companies (AES Sonel for existing hydropower plants and future hydropower self-producers)

Page 48: 3rd Cameroon Investment Forum 2009_Holding Slidesj

2nd Bridge on the Woury river in Cameroon

• Only one bridge crosses the large Woury river that divides Douala and Southern Cameroon in two parts.

• Slowdowns hamper economic activity and create a social burden

• The unique route creates a strategic, economic and social issue

• Economic profitability of a second bridge is high, but financial returns would imply a toll gate (and more

slowdowns) or a fiscal toll (and complex negotiations)

• A PPIAF financed study concluded that an all public option would fit that case

• AFD agrees and considers a loan to Cameroon

Page 49: 3rd Cameroon Investment Forum 2009_Holding Slidesj

• 1° What is AFD ?

• 2° Our strategy to foster PPPs

• 3° Examples of PPPs in Cameroun

• 4° Other information about AFD (as a

reminder)

Page 50: 3rd Cameroon Investment Forum 2009_Holding Slidesj

2008 commitments will contribute to the

fight against poverty and inequalities

Action

Access to drinking water

Primary schooling

Improvements in housing

conditions for people in

poor neighborhoods

Improvements to health

care services, hospitals

and clinics

Impact

4.4 million people

7 million children

1 million people

2.1 million patients per

year

Page 51: 3rd Cameroon Investment Forum 2009_Holding Slidesj

2008 commitments will contribute to

supporting economic growth

Action

Support for private enterprise

Create jobs in business, trade

and industry

Connection to telecommu-

nications networks

Construction and repair of

roads, railroads and tracks

Impact

80,000 firms

370,000 employees

5 million people

9.5 million people

Page 52: 3rd Cameroon Investment Forum 2009_Holding Slidesj

2008 commitments will contribute to

protecting Global Public Goods

Action

Energy efficiency

Reducing and off-setting

AFD‟s own carbon

footprint

Impact

Save 3.3 million tons of

CO2 per year – the

equivalent of 1.2 million

vehicles‟ annual carbon

dioxide emissions

AFD‟s first purchase of

20K tons of carbon

credits to fight

deforestation in

Cambodia

Page 53: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Increase food security through a new

Fund for African Agriculture

• A year after the “hunger riots,” AFD is launching a new

fund together with the African Development Bank, the

International Fund for Agriculture and Kofi Annan‟s

“Alliance for a Green Revolution in Africa”

• The Fund for African Agriculture is targeted at private

firms and farmers‟ cooperatives that will increase and

diversify crop production in Africa

• The Fund will raise €200 million in the near term, with a

long-term goal of €500 million

Page 54: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

BabissakanaCEOPrescriptor

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© Prescriptor - Juin 2009

Sustaining Investment and Growth

PUBLIC PRIVATE

PARTNERSHIPS:

Accelerating Infrastructure

Development

YAOUNDE, le 17 juin 2009

Par

Babissakana

Chairman & CEO,

Prescriptor

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SOMMAIRE

1 – PPP et Financement de Projet

2 – Apport des PPP dans le

développement des Infrastructures

3 – Modèle camerounais des PPP

et ses limites

Page 57: 3rd Cameroon Investment Forum 2009_Holding Slidesj

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1 – PPP ET FINANCEMENT DE PROJET

Fin

an

ce

me

nt-

Pro

jet:

Iso

lem

en

t et

rép

art

itio

n d

es

ris

qu

es

65 à 85%

15 à 35%

Société de Projet

Fonds propresPacte d'actionnaires

Dette sans recoursConvention Inter-créditeurs

Sponsor A Sponsor BSyndicat des banques

Institutions financières

OutputContrats d'achat

InputContrats

d'approvisionnement

Contrats de travail

Contrats de construction,

d'équipement, d'exploitation et de

maintenance

Gouvernement Local

Système légal, droits de propriété, regulation,

permis, certificats, contrats de concession

Page 58: 3rd Cameroon Investment Forum 2009_Holding Slidesj

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© Prescriptor - Juin 2009

1 – PPP ET FINANCEMENT DE PROJET

Fin

an

ce

me

nt-

Pro

jet:

Iso

lem

en

t et

rép

art

itio

n d

es

ris

qu

es

Fonds

propres

(15 à 35%)Société de

Projet

(65 à 85%) Crédits

sans

recours

Secteur public national Système financier national

* Etat * Banques et inst. Financières

* Investisseurs institutionnels * Marchés financiers

Secteur privé national Secteur financier international

* Fonds d'invest. et investisseurs * Banques

* Banques et inst. Financières * Institutions Financières

* Marchés financiers * Marchés financiers

* Fournisseurs et assimilés

Secteur privé et public international

* Fonds d'invest. et investisseurs

* Banques et inst. Financières

* Marchés financiers

* Fournisseurs et assimilés

Page 59: 3rd Cameroon Investment Forum 2009_Holding Slidesj

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© Prescriptor - Juin 2009

1 – PPP ET FINANCEMENT DE PROJET

Fin

an

ce

me

nt-

Pro

jet:

Str

uctu

re P

PP

Source: Banque Mondiale & PPIAF

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© Prescriptor - Juin 2009

1 – PPP ET FINANCEMENT DE PROJET

Fin

an

ce

me

nt-

Pro

jet:

Str

uctu

re P

PP

Société de

Patrimoine

Société

d'Exploitation

Propriété ExploitationPropriété et exploitation

Schémas d'organisation

Modèle Moniste Modèle Dualiste

Société de Projet Unique

Exploitation &

Maintenance

Concept ou

DémarragePlanification

Ingénierie

détailléeConstruction

Mise en

service &

clôture Production

Développement ou

PréparationExécution

Processus de Management d'un

Projet de Construction

Fonds propres Fonds propres + Dettes

Page 61: 3rd Cameroon Investment Forum 2009_Holding Slidesj

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© Prescriptor - Juin 2009

2 – Apport des PPP dans le développement des

Infrastructures

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© Prescriptor - Juin 2009

2 – Apport des PPP dans le développement des

Infrastructures

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© Prescriptor - Juin 2009

2 – Apport des PPP dans le développement des

Infrastructures

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© Prescriptor - Juin 2009

2 – Apport des PPP dans le développement des

Infrastructures

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© Prescriptor - Juin 2009

2 – Apport des PPP dans le développement des

Infrastructures

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© Prescriptor - Juin 2009

2 – Apport des PPP dans le développement des

Infrastructures

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© Prescriptor - Juin 2009

2 – Apport des PPP dans le développement des

Infrastructures

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3 – Modèle camerounais des PPP et ses

limites

Loi N° 2006/012 du 29/12/2006 fixant le

régime général des CP

Loi N° 2008/9 du 16/07/2008 fixant le

régime fiscal, financier et comptable aux

CP

Décret n° 2008-35 du 23 janvier 2008 portant

organisation et fonctionnement du CARPA

Décret n° 2008/0115/PM du 24/01/2008

portant application de la loi N° 2006/012

CADRE JURIDIQUE DES PPP AU CAMEROUN

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3 – Modèle camerounais des PPP et ses

limites

Président

Secretariat

Technique

Comité d'Orientation

12 Experts Personnel administratif

Conseil d’Appui à la Réalisation des

Contrats de Partenariat

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ENCADREMENT ECONOMIQUE ET FINANCIER PAR

L’ETAT-STRATEGE

Merci de votre

aimable

attention

Page 71: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Paul TasongDirector of Programming of Investments

Guy AbounaDirector of Infrastructure

Page 72: 3rd Cameroon Investment Forum 2009_Holding Slidesj

PUBLIC PRIVATE PARTNERSHIPS:

ACCELERATING INFRASTRUCTURE

DEVELOPMENT

Jointly presented by:

Paul TASONG, Director of Programming of Public Investments

&

Guy ABOUNA, Director of Infrastructure

on behalf of

HE Louis Paul MOTAZE

Minister of Economy, Planning and regional Development

Page 73: 3rd Cameroon Investment Forum 2009_Holding Slidesj

SUMMARY

1. Why accelerate the development of infrastructure?

2. How do we do it?

Page 74: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Impact of Infrastructure on Cameroon’s

economic growth and development

Cameroon’s economic growth ambitions have been

constrained by a number of factors such as:

1. Inadequate power supply (1% of GDP was lost in

2003 due to severe power cuts). Following serious

measures taken at the time to address this issue,

the impact of this energy backlog on growth has

come settle at 0.5% loss to date.

2. Other infrastructure shortages account for a loss of

some 0.4% of growth.

In the long run, we loose some 5% growth in ten

years.

Page 75: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Infrastructure represents an important issue in the

development process of Cameroon. Appropriate

infrastructure, as we know, leads to improvements in

social wellbeing and economic opportunities.

From the mid 80's to the mid 90's, Cameroon faced a

severe economic crisis that led to a strong

deterioration of its basic infrastructure (water

supply, electricity, transport and telecommunication

services). The economic recovery observed by

Cameroon since 1994 with an annual average growth

rate of 4% for the 10 yeas that ensued brings out the

problem of sustained infrastructure to support this

growth.

Page 76: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Development crossroad:

Upon admission to the HIPC initiative at the turn of

the century, Government was faced with making a

choice between pursuing economic growth as a tool

for development or developing with a human face.

A deliberate development policy choice was made,

to give priority to poverty alleviation, with emphasis

on the social sectors (mostly education and health)

as embedded in the PRSP.

Page 77: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Paradigm shift

Upon attainment of the completion point of the HIPC initiative in 2006, consensus was built around the fact that the concept of fighting poverty was relatively illusive.

The paradigm shift was established when the head of state instructed that economic growth should take centre stage.

Baseline consultations that followed this instruction, confirmed that the people of Cameroon preferred infrastructure development over the provision of other minor socio collective amenities.

Page 78: 3rd Cameroon Investment Forum 2009_Holding Slidesj

A second generation PRSP, which is in its

validation phase affirms in very strong terms,

the need for infrastructure to booster

production in all sectors such as:

agriculture, tourism, animal husbandry,

mining, communication, industry, forest

exploitation, etc.

Page 79: 3rd Cameroon Investment Forum 2009_Holding Slidesj

ASSUMPTIONS

NB -1: The social sectors stand to gain with

improved infrastructure.

NB -2: Geo-strategically, Cameroon is a

major trade junction between the central

African sub region (CEMAC and the larger

community extending to RDC and Angola),

and Nigeria.

NB -3: The several resources with which

Cameroon is so blessed have a ready market

in these neighbouring nations whose

population is well over 200 million.

Page 80: 3rd Cameroon Investment Forum 2009_Holding Slidesj

CONCLUSION

Why do we have to accelerate

infrastructure development?

Because we have to return to economic

growth, so as provide better social

services, get the economy closer to full

employment of factors and foster

production and consumption.

Page 81: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur Energie (1)

• Il s‟agira sur la base du Plan de

Développement du Secteur Energie PDSE

2035 de porter les capacités de production

du pays à 3000 MW en 2020.

• A court terme : Centrale thermique à fuel

lourd de 86 MW à Yassa, Centrale à gaz

de Kribi de 216 MW.

Page 82: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur Energie (2)

• A moyen terme : Barrage de régulation de

Lom Pangar avec usine e pied de 25 MW ;

barrage hydroélectrique de Nachtigal de

280 MW ; barrage hydroélectrique de 900

MW à Song Mbengue ; barrages hydro

électriques de Colomines (12 MW), Bini à

Warak (75 MW), Mekim (10 MW) etc…

Page 83: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur Energie (3)

• A long terme il s‟agira de valoriser les sites

de productions aux fins d„exportation par

interconnexion avec les pays voisins. :

Kikot (430 MW), Cholet/Dja (400MW),

Mamfe (123 MW), Noun Wouri (1200MW),

Grand Eweng (386 MW) pour ne citer que

les plus importants

Page 84: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur Energie (4)

• Le coût global du programme décennal est

d‟environ 5800 milliards fcfa pour les

ouvrages de production et de transport et

663 milliards fcfa pour le programme

d‟électrification rurale. Plusieurs études de

faisabilité sont disponibles, certains projets

sont en stade d‟instruction avancée avec

des études techniques, économiques,

financières et environnementales.

Page 85: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur routier (1)

• Il s‟agira sur la base du Plan Directeur Routier National

de doubler le linéaire de routes bitumées d‟ici 2020 sur

un rythme moyen de 450 km par an.

• Construction d‟un deuxième pont sur le Wouri afin de

conforter le statut de métropole sous régionale à la ville

de Douala, et surtout de contribuer à la facilitation de la

circulation pour les acteurs privés : ouvrage neuf mixte

routier/ferré d'environ 900 mètres comportant 2x2 voies

routières avec séparateur central et bande d'arrêt

d'Urgence (BAU) ou 2x3 voies avec une voie ferré pour

un coût d‟environ 80 milliards fcfa.

Page 86: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur routier (2)

• Bitumage en 2x2 voies des axes

Yaoundé-Douala, Douala-Bafoussam,

Bafoussam-Yaoundé, Douala Limbé.

• Bitumage des corridors de développement

en Afrique Centrale, Yaoundé-Brazzaville,

Kribi-Bata, Kribi-Ebolowa, Réhabilitation

de Douala-Ndjamena, Douala-Bangui etc..

Page 87: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur Transport (1)

• Il s‟agira sur la base du Schéma Directeur

Portuaire National qui définit la répartition

cohérente des installations portuaires pour

une optimisation de la desserte maritime

du pays.

• Construction du port en eau profonde de

Kribi pour environ 300 milliards

Page 88: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur Transport (2)

• Construction du port en eau profonde de

Limbe croisement du schéma de

développement de l‟aire métropolitaine de

Douala, avec l‟approfondissement à -8 m

du chenal d‟accès au port de Douala.

• Construction en cours du Yard pétrolier de

Limbé

Page 89: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur Transport (3)

• Il s‟agira sur la base du Plan Directeur

Ferroviaire National en cours d‟élaboration

de procéder à l‟aménagement de

nouvelles voies ferrées selon les

standards internationaux en la matière

pour faciliter l‟exploitation des ressources

minières et le développement de l‟industrie

minière (fer de Mbalam et filière bauxite

alumine-aluminium à partir de

l‟Adamaoua)

Page 90: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur des TIC

La poursuite de l’extension du

backbone a fibre optique pour couvrir

le territoire national et au dela.

Page 91: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Secteur Développement urbain

et de l‟habitat

• La construction des logements sociaux

pour couvrir le déficit de 900 000 au

rythme de 90 000 par an

• L‟extension des voiries urbaines et

assainissement

Page 92: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Les outils d’acquisition de la commande

publique pour le Développement des

Infrastructures

• Le code des marchés publics

actuellement en relecture pour le

rendre plus efficace

• Les contrats de partenariats : outil de

couverture et de partage des risques

• Amélioration du climat des affaires

Page 93: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Thank you for your kind and keen attention

Page 94: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Trade Liberalisation & Economic Growth: Strengthening Regional Markets

Page 95: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Chair: Steve GodfreyManaging DirectorCommonwealth Business Council

Page 96: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Leopold NgalleChairmanICCCameroon

Page 97: 3rd Cameroon Investment Forum 2009_Holding Slidesj

CAMEROON INVESTMENT FORUM

Trade Liberalization & Economic Growth:

Strengthening Regional Markets

By Leopold Ekwa Ngalle, Chairman ICC Cameroon

Page 98: 3rd Cameroon Investment Forum 2009_Holding Slidesj

CONTENT

Introduction Benefits of Liberalization

CEMAC: History and Composition

Assessing the State of CEMAC Strength

Weaknesses

The Way Forward Policy Recommendations

For Public Sector

For Private sector

Conclusion

Page 99: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Introduction

Trade Liberalization

- No or Low Tarriffs on imports and exports

- Elimination of Non-tarriff-barriers

- External: Trade quotas, Sanitary measures etc.

- Internal: Trade taxes, special tax on imports, subsidise etc.

Developing Countries account for 1/3 of world trade up from about ¼ in the early 1970s.

Trade between developing countries has grown rapidly, with 40% of their exports now going to other developing countries.

Page 100: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Benefits of Trade Liberalization

Trade opening (along with opening to foriegn direct investment) leads to economic growth. How?

These benefits can be divided into:

Static Gains:

Increased specialization based on comparative advantage (Competitive advantage)

Trade creation.

Dynamic Gains:

Increased investment

Faster productivity growth (economies of scale)

Acquisition of new technology from abroad.

Learning by doing (transfer of knowledge)

Page 101: 3rd Cameroon Investment Forum 2009_Holding Slidesj

CEMAC Regional Market

Regional integration is a crucial factor for accelerating economic, social, cultural, and political development in Africa.

The Central African Economic and Monetary Community (CEMAC) was created in 1994 to replace the Customs and Economic Union of Central African States (UDEAC).

Comprises of 6 states in Central Africa; Cameroon, Gabon, Chad, Central African Republic, Equatorial Guinea, and Rep. Of Congo.

With the main objectives of a Customs Union (free movement of goods and people) and a Monetary Union.

Page 102: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Intra-regional trade is low at less than 10% of

GDP and less than 2% of total trade (WTO,

2007).

Page 103: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Assessing the State of CEMAC

What Works:

The Monetary Union (FCFA- reduction of transaction

cost)

Inflation below Euro area levels

Substantial increases in foreign exchange reserves.

Member economies grew at 3.0% in 2000, 5.4% in

2001, 4.5% in 2002 and 4.7% in 2003 reflecting

improved oil prices and government services.

Page 104: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Assessing the State of CEMAC

What Does Not Work:

Free mobility of goods and people across the borders is impeded by discretionary behaviour of customs officers and local authorities.

Internal linkages within the region are inadequate or none existent (poor roads, Air and Maritime)

Poor communication infrastructure

Compounded by numerous checkpoints, vigorous and long border checks

Page 105: 3rd Cameroon Investment Forum 2009_Holding Slidesj

African Regional Trade

Characteristics

Page 106: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Assessing cont.

Poor implementation of regional trade policies

rules of origin, administrative hurdles

Red tape (bureaucracy – paperwork)

Weak and insufficient customs administration

(missclassification of imports and corruption

problems)

Page 107: 3rd Cameroon Investment Forum 2009_Holding Slidesj

The Way Forward

Page 108: 3rd Cameroon Investment Forum 2009_Holding Slidesj

WAY FORWARD

In strengthening our regional market, we have to

examine the following problems:

Regional Level:

Increase common budget to finance regional

projects (Regional Development Bank)

Create functional transport corridors (land, air (Air

CEMAC), sea, telecommunication)

Support investment and prioritize manufacturing and

processing industries.

Suppress all regional trade restrictions ( phasing out

remaing surcharges, determination of products

country of origin)

Page 109: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Way Forward Cont.

Institute regional policies that compensate the losers

of the integration process (Cotton/Chad,

Sugar/Gabon).

National level:

Change policies and regulations that prevent

efficient use of infrastructure or deter private

sector investments in building infrastructure.

Harmonized policies at national levels.

Educate and train immigration and customs officers

Page 110: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Private Sector:

There are some contributions that have been made by the private sector.

Conference of the Chamber of Commerce of CEMAC: meets 2-3 times yearly.

Sharing of Trade Fairs

Sharing of Missions

ICC Contribution: Conception of Incorterms, Provision of business tools, best business practices, Arbitration etc

ICC Africa Regional Coordination: Integration of policy and sharing of information at the African regional level.

Page 111: 3rd Cameroon Investment Forum 2009_Holding Slidesj

END

Thank You for Your Kind Attention

Page 112: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

HE Luc Mbarga AtanganaMinister of TradeCameroon

Page 113: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Parallel Sessions - Energy & Environment: A key Enabler of the Business Environment

Energy

Page 114: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

John Griffith General ManagerEuroil

Page 115: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Energy & Power: A key enabler

of economic development

by

Chief Tabetando, Chairman, EurOil Limited

(Presented by John Griffith, General Manager, Bowleven,

West Africa)

Yaounde, 17th June 2009

Page 116: 3rd Cameroon Investment Forum 2009_Holding Slidesj

OUTLINE:

• Definition and examples of catalysts of economic

development

• Relationship between energy and economic

development

• Some figures and indicators

• Challenges faced by Cameroon‟s energy sector

• A case study: The Tanzanian experience

• Conclusion

Page 117: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Definition of an Economic Enabler

An input or factor which:

• Boosts development and production of the original

resource

• Provide or stimulate regular income and new capital for

investment

• Attracts external financing – DFI by development banks

and foreign companies

• Generates additional economic activities which facilitate

development of new resources adding further value to

the Cameroon economy

Page 118: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Examples of Economic Enablers

• Social-enablers (education, health, poverty-reduction measures)

• Enablers of rapid economic development (technology and training of manpower)

• Agents of wealth creation (capital availability and access to finance)

• Enablers of government administration and service delivery (security and contract stability for FDI)

• Enabler of industrial development (energy and power)

• Enablers in the agriculture sector (capital and credit, fertilizers and other farming implements,)

• Drivers of private sector development (infrastructure, a conducive legislative and regulatory framework)

Page 119: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Relationship between Energy and

Economic Development

• The relationship is exponential not linear

• (Q1,...,Qm) = f(AxX1...XiE1...Ep)

• where Qi are various outputs (manufactured goods and

services) = Economic growth and added value

• Xi :various inputs (as capital, labor etc)

• Ei: energy inputs (coal, oil, etc)

• A: state of technology as defined by the total factor

productivity indicator

Page 120: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Plant Location Type

Efficienc

y

Capacity

, MW

Start

date

Decomm.

date

Song LouLou hydro 394

1980/81/86/8

8

Edea Edea hydro 263 1957/58/75

Oyomabang 1 Yaounde diesel 38.5% 12.5 2000/01

Oyomabang 2 Yaounde HFO 44.6% 19.5 2004

Bassa 2-3 Douala diesel 38.5% 9 1979 2008

Bassa 4-5 Douala diesel 38.5% 9.6 2001

Logbaba Douala diesel 38.5% 18 2000/01

Bafoussam 1-2 Bafoussam diesel 35% 9.3 1986 2015

Bafoussam 3 Bafoussam diesel 35% 4.7 2004

Limbé Limbé HFO 44.6% 85 2004

Total 824.6

Generation Mix in the S. Network (source: MINEE, 2007 )

Power Generation by Type in Cameroon

Page 121: 3rd Cameroon Investment Forum 2009_Holding Slidesj

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2005 2010 2015 2020 2025 2030

GW

h

EMP Base Case DPES Min DPES Low

DPES Med DPES High

0

1000

2000

3000

4000

5000

6000

2005 2010 2015 2020 2025 2030

MW

EMP Base Case DPES Min DPES Low

DPES High DPES Med

Comparison of Demand Scenarios (Source: PDSE 2030, 2006)

Power Demand Forecasts to 2030

Page 122: 3rd Cameroon Investment Forum 2009_Holding Slidesj

0

200

400

600

800

1000

1200

1400

16002

00

52

00

62

00

72

00

82

00

92

01

02

01

12

01

22

01

32

01

42

01

52

01

62

01

72

01

82

01

92

02

02

02

12

02

22

02

32

02

42

02

52

02

62

02

72

02

82

02

92

03

0

MW

EMP Supply DPES Supply DPES Demand EMP Demand

Demand-Supply Matching in DPES 2030 and EMP (courtesy PDSE 2030)

Projected New Demand-Supply

Matching to 2030

Page 123: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Project Location Start year Additional MW Required

Aluminium Sector (ALUCAM) I Edea 2010-

2011

275 (450 total)

Aluminium Sector II Kribi/ Limbé 2015 800

Aluminium Sector III Kribi/ Limbé 2020 500-900

Aluminium Sector IV Kribi/ Limbé 2025 450-850

CIMENCAM Douala 2010 3

CICAM TBC TBC 20

AFKO Cement Limbé 2007 6

Iron and Steel Kribi 2013 80-160

Agro-industrial development Benoue TBC 50

SONARA expansion I Limbé 2008 3

SONARA expansion II Limbé 2012 32

Wood Processing TBC TBC 50

Petrochemicals TBC TBC 20-30

Shipyard Limbé 2009 6

Kribi Port Kribi 2015 7

Exports N/A TBC N/A

List of Industrial Projects according to High Demand Scenario

(Courtesy IPA Energy Consulting, 2006)

New Industrial Power Needs – 2009 to 2025

Page 124: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Challenges Facing Cameroon’s

Energy Sector

• Demand for power is projected to double by 2025

• Current plans are to fill 80% of demand gap with hydro, which can suffer 40% downtime.

• Shortage of capital – direct foreign investment only

• Need for clarity in the role of the different government agencies and more than one Power Plan

• Limited and costly supplies of fossil fuels – gas is not yet on-stream

• Cameroon‟s hydrocarbon resources are lightly appraised.

• Technology transfer needs to be stepped up

• Future power needs for industry need definition

• Biomass resources – wood – depleting quickly

Page 125: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Tanzanian experience: Songo Songo Gas

The Details:

• Offshore Tanzania – Discovered by AGIP in 1974

• Appraised by TPDC (8 wells), 1978-82 – Approximately 800 BCF in place

• Project dormant 1982 to 1995 – No perceived market, no financing

• In 1995, Ocelot, Trans Canada Pipe and Government Agencies formed SONGAS to facilitate GTE project

• Financing secured from World Bank and European Development Bank – Oct 2001

• Construction started 2003, first gas mid 2004, now delivering 60 mm scf/day to Dar es Salaam

• For more details go to: www.tpdc-tz.com and www.songas.com

The Transformation:

• Pre July 2004 – Tanzania had 300MW hydro and 250MW imported HFO and Diesel power. Load Shedding up to 40%

• Today – All thermal power is gas at 400+MW base-load, hydro (>300MW) is peak producer. Excess gas is supplied direct to growing industrial base. Export to Kenya being discussed.

Page 126: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Songo Songo Gas – The Dar es Salaam

Off-Takers

Courtesy of ORCA Exploration - 2007

Page 127: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Songo Songo Gas – The Results So Far:-

Positive impacts of the project include:– Cut reliance on imported liquid fuel for power generation

– Reliable supply of cheap energy to reduce shortages and load shedding

– Encourage the development of new infrastructure and industrial activity

– Attracting new investment both domestic and foreign

– Generation of clean energy with positive environmental impacts

Lessons learnt: – Project development only possible with all stakeholders working

together with government agencies under a clear national power plan

– Financing of the construction of a complex value chain made possible by international development finance (World Bank, EDB)

Page 128: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Conclusions

Energy will be a powerful economic enabler if we have:

• State participation – A clearly defined power plan is essential. CGA and other Ministry initiatives a good start

• …But liberalizing the energy sector and cutting bureaucracy is equally essential

• Diversifying the energy sources makes the economy less vulnerable

• Use Cameroon gas for thermal power generation to cut the energy bill a clear option – but gas must be base-load

• Other uses for gas (LNG, direct export) must be part of the Master Plan – whichever is the strongest economic enabler

• Create an attractive environment for DFI

• Co-responsibility of stakeholders – respecting legal, social and

contractual responsibilities

• Replacing biomass and liquid hydrocarbon energy with gas will

benefit the environment

Page 129: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Dudley Achu SamaExecutive First Technical Adviser Ministry of Energy and Water Resources Cameroon

Page 130: 3rd Cameroon Investment Forum 2009_Holding Slidesj

COMMONWEALTH BUSINESS COUNCIL

3rd CAMEROON INVESTMENT FORUM

YAOUNDE, 16-18 JUNE 2009

ENERGY AND POWER: „A KEY

ENABLER OF THE BUSINESS

ENVIRONMENT’

By: The Ministry of Energy and

Water Resources (MINEE)

Yaounde, Cameroon

Page 131: 3rd Cameroon Investment Forum 2009_Holding Slidesj

SUMMARY

1. Policy & market overview

2. Importance of Energy to the economy:

key examples

3. Updates on Energy Projects (focus on

power)

4. Pipeline of Investment Portfolios

5. Looking Ahead

Page 132: 3rd Cameroon Investment Forum 2009_Holding Slidesj

I - POLICY & MARKET

OVERVIEW

Page 133: 3rd Cameroon Investment Forum 2009_Holding Slidesj

I - POLICY & MARKET

OVERVIEWCameroon’s Energy policy centered on three

main goals:

1. Energy independence & universal access to clean forms of energy

2. Promote market competition and; where appropriate; provide targeted subsidies to low-income households towards productive uses

3. Ensure least-cost supply and under safe conditions, including consideration for protection of human health and the environment

Page 134: 3rd Cameroon Investment Forum 2009_Holding Slidesj

I - POLICY & MARKET OVERVIEW –

Development strategies

• Electricity sector– Country‟s generation expansion strategy on long-term hinged on hydropower;

and thermal support from gas

– Projects are outcome of PSDP/PDSE 2030 (Nov.2006)– least cost portfolio

– Universal electrification is the main goal pursued by Govt

– Added-value natured of the sector to GDP formation must be sustained - as factor to attract other investments

• Oil & gas sector:– Indigenous reserves (upstream) provides the base supply

– Downstream infrastructure to cater for national demand/consumption in terms of oil products and gas derivates

• Key incentives (trans-sectoral) to support development and rational utilisation of resources

– Liberalisation policies targeting market competition for the supply chain;

– Regulatory support – to minimise/avoid monopoly

– Fiscal and customs incentives

– Public private partnerships (PPP) to allocate and reward risks

– Concessions to ensure recovery of investments and reward for risk (returns)

Page 135: 3rd Cameroon Investment Forum 2009_Holding Slidesj

I- POLICY & MARKET OVERVIEW -

INVESTMENT CLIMATE (KEY ISSUES IN POWER SECTOR)

1. LEGAL/REGULATORY FRAMEWORK

– SPECIFIC LAW PUBLISHED DEFINING ACTIVITIES AND ROLES OF ACTORS IN THE

SECTORS

– PROCUREMENT IS A KEY FEATURE ON PURCHASE OF ADDITIONAL CAPACITY

– LICENCE REGIMES FOR PRODUCTION/TRANSPORT/DISTRIBUTION-RETAIL AND

CONDITIONS FOR AWARD ARE DEFINED

2. MARKET INCENTIVES : FISCAL/CUSTOMS

– FISCAL TERMS AWARDED FOR DIFFERENT STAGES OF PROJECT CYCLE –

CONSTRUCTION TO DECOMMISSIONING

– WAIVERS AND CANCELATIONS ON DUTIES FOR IMPORT OF CAPITAL EQUIPMENT

– FINANCIAL REGIME IS PREDICTABLE: RETURN ON INVESTMENTS CAN BE

NEGOTIATED IN CONCESSION AGREEMENT;

3. RESOLUTION OF CONFLICTS

– SECTOR REGULATOR ACTS AS ARBITER FOR DISPUTES

– COURTS CAN BE REFERRED TO IN CASE OF DISAGREEMENT AMONG DISPUTING

PARTIES

– COUNTRY IS SIGNATORY TO SEVERAL INTERNATIONAL TREATIES ON

TRADE/COMMERCE e.g. WTO /UNICATRAL

4. CREDIT RISK

– LOW DEFAULT IN PAYMENT BY CONSUMERS (RECEIVABLES)

– NO CASE OF DEFAULT IN POWER OFFTAKE AGREEMENTS/ GUARANTEES ARE NOT

6/25/2009 135

Page 136: 3rd Cameroon Investment Forum 2009_Holding Slidesj

a) HYDROPOWER: GROSS POTENTIAL OF 55 GW (1983 inventory)–

i. Theoretical generation capacity of 294 Tera Watthours(TWh) per year.

ii. Technical and economically exploitable potential is19.7GW for a generating capacity of 115 TWh/year.

The current installed capacity represents 4% of thetechnically feasible exploitable potential.

There are 63 out of 100 sites that are distributedaround the country and have been assessed atpreliminary stage design to have capacities of upto 10 MW

b) BIOMASS RESIDUES (agriculture and forest logging): huge anduntapped potential amenable for generation of heat andpower/CHP.

c) SOLAR: Average Annual Irradiation of 4 -6 kWh/m2/day; almostuniformly spread around the country; but more regular in thenorthern portion.

I - POLICY & MARKET OVERVIEW: RESOURCE ENDOWMENT

Page 137: 3rd Cameroon Investment Forum 2009_Holding Slidesj

MARKET OVERVIEW

d) NATURAL GAS (BOTH ASSOCIATED AND UNASSOCIATED)

• PROVEN RESERVES OF 11 TCF / OFFSHORE – VERY

RICH QUALITY (LOW SULPHUR & OTHER IMPURITIES,

HIGH METHANE CONTENT)

• ECONOMIC RESERVES TO INCREASE EVEN THREE

FOLD, FIVE YEARS FROM NOW, GIVEN AGGRESSIVE

EXPLORATION PROGRAM AND INTERIM RESULTS

Page 138: 3rd Cameroon Investment Forum 2009_Holding Slidesj

I- MARKET OVERVIEW

e) ENERGY BALANCE IN 2007

1. SUPPLY (TOTAL = 10.2 Million TEP)BIOMASS 49 %

OIL & GAS 48 %

ELECTRICITY 3 %

ELECTRICITY BALANCE IN 2007 (TOTAL = 5,471 GWH)

– 70% SUPPLIED BY HYDROPOWER;

– 8% THERMAL/ OIL-FIRED PLANTS;

– AUTONOMOUS GENERATORS - 22% MOSTLY FROM BIOMASS/AGRIC RESIDUES;

– GENERATION FOR PUBLIC GRID – 4.3 TWH;

TOTAL CONSUMPTION (5.886 MTEP) BY SECTOR:– RESIDENTIAL 74%

– INDUSTRY 6%

– TRANSPORT 12%

– OTHERS 8%

6/25/2009 138CAMEROON

Page 139: 3rd Cameroon Investment Forum 2009_Holding Slidesj

I - MARKET OVERVIEW

6/25/2009 139

2001 2002 2003 2004 2005 2006 2007

biomass 3,844 3,948 4,055 4,164 4,277 4,393 4,511

petroleum products 862 851 890 890 907 920 938

electricity 4,981 5,137 5,316 5,445 5,586 5,736 5,878

Total 9,686 9,936 10,260 10,499 10,769 11,048 11,326

0

2000

4000

6000

8000

10000

12000

CAMEROON ENERGY DEMAND- 2001-2007(DEMAND IN '000 TEP

biomass

petroleum products

electricity

Total

Power (Total)

Page 140: 3rd Cameroon Investment Forum 2009_Holding Slidesj

II – IMPORTANCE OF ENERGY

TO THE ECONOMY

Page 141: 3rd Cameroon Investment Forum 2009_Holding Slidesj

II- ENERGY AS DRIVER OF THE ECONOMY: STRATEGIC

FACTORS

1. Contribution to Economic growth– Added value from exports, revenue to budget (taxes, royalty)

– Level and quality of Investments are important to induce multiplier effects

2. Social aspects: employment and welfare, technology– Provider of jobs in electricity, oil and gas industries:

– Facilitates access to other new technologies. eg. fiber optic (telecommunications) increasingly used in power transmission and control networks

3. Key decision factor for new investments

– Capital intensive and added-value industries (e.g. mining/minerals, metals) cannot financially close without guaranteed long-term energy supply

– Transportation will not happen without fuels

4. Support to other social sectors (see MDG)-poverty alleviation via productive uses

– Health: conservation of vaccines and lighting of clinics

– Education- school lighting and longer hours of learning at home

– Water supply (drinking and irrigation) – power for water treatment and pumping for irrigation of fields

– Food security: refrigeration/conservation of agricultural and other foods

The above are so important and interlinked as the correlation between energy supply (adequacy and reliability) and GDP growth are intimate (see graph on next page)

Page 142: 3rd Cameroon Investment Forum 2009_Holding Slidesj

EXAMPLE: ECONOMIC PENALTY FOR UNDERINVESTMENT IN POWER

SECTOR: BY 2010, LOST ECONOMIC PRODUCTION DUE TO

SHORTAGE/ABSENCE OF POWER WOULD BE CLOSE TO THE

FORECAST GROSS DOMESTIC PRODUCT.

Potential loss in Economic growth due to power

outages (in terms of GDP)

0%

1%

2%

3%

4%

5%

2005 2010 2015 2020 2025

Year

% L

oss o

f G

DP

loss due to

outage as % GDP

5-Yr GDP grwth

Page 143: 3rd Cameroon Investment Forum 2009_Holding Slidesj

II- KEY DRIVERS FOR INCREASED INVESTMENTS

1. GOVERNMENT POLICY FOR UNIVERSAL ACCESS:– CURRENT NATIONAL ELECTRIFICTION RATE IS ONLY 46% AND OFFGRID/RURAL

ELECTRIFICATION IS ONLY 10%

– ACCESS TO PETROLEUM PRODUCTS / ESPECIALLY LPG IS LESS THAN 10%

– GOVT OBJECTIVE TO INCREASE UNIVERSAL ACCESS BY 75% BY 2020 AND 100% BY 2030

2. ATTRACTIVE MACROECONOMIC REFORMS AND SECTOR PLANS– ENERGY SECURITY AND DIVERSIFICATION REVEALED THROUGH LEAST-COST EXPANSION

PLANS

– ATTRACTIVE FRAMEWORK FOR PRIVATE CAPITAL INVOLVEMENT CONTINOUSLY IMPROVED SINCE 1998:

• UNBUNDLING AND LIBERALISATION OF POWER SUPPLY FUNCTIONS

• REGULATORY AUTHORITY RELATIVELY INDEPENDENT

• OPPORTUNITIES FOR INDEPENDENT POWER PRODUCERS

• FRAMEWORK RISK ALLOCATION PUBLISHED - FOR PUBLIC PRIVATE PARTNERSHIPS

– ATTRACTIVE ROE OF POWER UTILITY RECORDED (8 TO 9 % POST TAX – 5 YEAR AVERAGE)

– GDP vrs. CONSUMPTION HIGHLY CORRELATED – HISTORICAL TREND

3. FAST GROWING DEMAND (NATIONAL & EXPORT)

• INTERNAL DEMAND– 10-YEAR LOAD DEMAND GROWING FASTER THAN GDP (8% vrs 5%)

– RESERVE MARGIN IS ALMOST INEXISTENT AND RELIABILITY HAS DETERIOTATED MAINLY DUE TO LAG IN INVESTMENTS

– GROWING INDUSTRIAL DEMAND FROM ENERGY INTENSIVE INDUSTRIES –ALUMINIUM, IRON ORE/STEEL, CEMENT, ETC

EXPORT MARKETS– ALL NEIGHBOURS EXPRESSED INTEREST TO BE SUPPLIED BY CAMEROON

• ELECTRICITY: 6,000 MW –FIRM BY 2015 AND MORE AFTER

• OIL PRODUCTS AND GAS

• DEVELOPED COUNTRIES EXPRESS DESIRE TO IMPORT GAS/LNG

6/25/2009 143CAMEROON POWER OPPORTUNITIES

Page 144: 3rd Cameroon Investment Forum 2009_Holding Slidesj

COMPELLING REASONS TO INVEST IN

ADDITIONAL CAPACITY – ILLUSTRATION

OF THE SOUTHERN INTERCONNECTED

GRID SUPPLIED BY AES-SONEL AREA

ISSUE TO ADDRESS: ADDITIONAL

GENERATION & TRANSMISSION

CAPACITY REQUIRED TO EXISTING

ASSET OPERATED BY AES SONEL:

1. DRY SEASON PEAK INCREASINGLY

IMPORTANT DUE TO LOW HYDRO-

AVAILABILITY, INDUSTRIAL LOADS

2. DIESEL-FIRED PLANTS OPERATED BY

AES SONEL WILL NOT EXIST AS FROM

2010 DUE TO AGE AND OPEX –

EXISTING PLANTS WILL BE

DECOMMISSIONED

3. AES -SONEL GENERATING CAPACITY

CAPPED AT 1000 MW (RESIDUAL IS

LESS THAN 70 MW), SO

ADDITIONAL/EXTERNAL TO

CONCESSION GENERATION CAPACITY

AND TRANSMISSION NEEDED

4. AES SONEL CONCESSION LICENSE

EXPIRES AT 2021

NEW PLANTS / IPP ROLE

1. MIX OF PLANTS (HYDRO + GAS)

EMERGING, WITH GAS CAPACITY

BECOMING IMPORTANT - TO INCREASE

NATGAS SUPPLIES OVER THE NEXT

YEARS

2. SOME OFFGRID HYDROPLANTS TO BE

BUILT /OPERATED TO NETWORK

RELIABILITY IMPROVEMENT AND

FILLING PART OF PEAKS

3. CAPEX FOR HYDRO VRS GAS WILL

COUNT IN OPTIMAL MIX; THEREFORE

PPAs WILL BE KEYED ON FIRM AND

LONGTERM OFFTAKE

CAMEROON POWER SECTOR

OPPORTUNITIES & CHALLENGES144

-

200

400

600

800

1 000

1 200

1 400

Av

ail

ab

le c

ap

ac

itie

s (

MW

)

Capacity deficit (MW) 72,6 118,6 55,4 33,2 51,2 73,0 130,4 69,3 96,3 124,4 153,5 184,1 223,5 265,1 308,6

Diesel plants 37 51 51 - - - - - - - - - - - -

Oyomabang/Logbaba HFO 19 30 30 30 30 30 30 30 30 30 30 30 30 30 30

Limbe HFO 79 82 82 82 82 82 82 82 82 82 82 82 82 82 82

Kribi - - - 147 147 147 147 147 147 147 147 147 147 147 147

Dibamba - - 84 84 84 84 - 84 84 84 84 84 84 84 84

Hydro plants 460 414 414 416 420 422 524 527 527 527 527 527 527 527 527

Maximum load at Peak - dry season 667 695 716 792 814 838 913 939 966 994 1 023 1 054 1 093 1 135 1 178

Public sector at Peak 528 547 568 589 611 635 660 686 713 741 770 801 840 882 925

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Page 145: 3rd Cameroon Investment Forum 2009_Holding Slidesj

III – UPDATE ON ENERGY SECTOR

PROJECTS

Focus on power portfolios

Page 146: 3rd Cameroon Investment Forum 2009_Holding Slidesj

III - UPDATE ON

PROJECTS: POWER SECTOR

Page 147: 3rd Cameroon Investment Forum 2009_Holding Slidesj
Page 148: 3rd Cameroon Investment Forum 2009_Holding Slidesj

III.1 - POWER SECTOR UPDATE

• Projects under processing (expected COD)– Lom Pangar (head storage reservoir/powergen @50 MW): 3Q2012/1Q2013

• Key studies and 1st round table of donors conducted

• Project zone defined under lands register

• Preparatory works launched; including environmental/social compensation

• Second & final roundtable of donors planned

– Yassa/Dibamba-Douala (HFO-fired 88 MW: 3Q2009

– Kribi power project (gas to electricity@ 250 MW): 1Q2012

– Memve‟ele hydropower (run-of-the river @ 200 MW): 2Q2013

– Nachtigal hydropower (@330 MW): 3Q2013 & contingent upon completion of Lom Pangar reservoir

• Pipeline of new projects– Bini à Warak (hydropower @75 MW) – feasibility studies to start in July 09

– Limbe (gas to Electricity @ 315 MW)): Idem

– LogBaba (Gas to electricity @ 50 MW)): • Final exploratory drilling to start in July 09

• Gas operator consulting with potential/industrial customers of gas and HV power

Page 149: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Update: Case Study – Practice for preparing

Kribi gas to powerContractual framework used: Risk allocation under PPP principles (see schema overleaf)

• Reference legal framework: Electricity code; Gas code; Environmental Management / Impact assessment

• Relevant Licensing scheme & status:

– EIA almost complete (on power side); ongoing for gas supply side

– IPP license application drafted; to be finalised after gas supply pricing available

– Commercial contracts:

• GSA: gas supplier (SNH/Perenco) to power generator (KPDC)

• PPA : Power off taker (AES SONEL) buys power supplied at its busbar (100 km from generation site)

• Construction & operations Contracts

– Gas supplier hired via bidding

– EPC for power to be hired under international open bids (bids under review)

– O&M contractor could be part of EPC or independent

• Financing plan:

– Project capex increased from US$80M in 2005/06) to US$100 M, due to:

• Increase in price for hardware and labour in OECD countries

• High demand for crude and refined products, and construction orders

– Financed through Equity (GoC & AES)+ debt (syndicated loan; senior lender is IFC)

– Guarantees & security package:

• Tariffs close to economic cost: no subsidy; tariffs will be adjusted

• Risks guaranteed covered under: WB/PRG; GoC/Sovereign; insurance

• Lessons learned so-far:• Secure lands early enough and commence public information to avoid unjustified claims for property

compensation

• Delays lead to cost increase even when price of gas reduces after

• Gas supply is not conclusive until PPA deal has been sealed

• Stakeholders must own only one project timetable

• Lenders‟ presence important to speed preparation as they avail to experience elsewhere.

Page 150: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Contractual arrangements

Page 151: 3rd Cameroon Investment Forum 2009_Holding Slidesj
Page 152: 3rd Cameroon Investment Forum 2009_Holding Slidesj

DEVELOPMENT PROCESS

Page 153: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Subordinate lenders

GoC $Y01mil.,

40 years,

at 0.75%

AES SONEL/KPDC

$Y02., 20 years, at 6.00%

IDA Spread

Account

$Y1mil., 10 years,

at 10.00%

Economic tariff

Pre-project tariffs

$Y3mil. loan at

10.00% expected

rate of return

$Y2mil. equity at

10.00% expected

rate of return

FINANCING ARRANGEMENTS

$Xmil.

Industrial

Consumers

IFC

IDA

Household

Consumers

Page 154: 3rd Cameroon Investment Forum 2009_Holding Slidesj

IV – PROJECTS PIPELINE FOR WHICH

INVESTMENT IS SOUGHT

Page 155: 3rd Cameroon Investment Forum 2009_Holding Slidesj

IV – INVESTMENT PIPELINE

Projects pipeline comprise:– Power sector and renewables

– Oil and gas – downstream (refining to distribution)

– Energy efficiency

• Final demand prepared under GoC‟s vision for MDGs achievement

• Despite economic slow down; observed demand is slightly affected ( transportation fuels consumed by export activities)

• Investment gap is growing, due to lag in or insufficient investments. Without adequate investments (a level commensurate to catch-up lag and anticipate future demand), economic growth will further be constrained

Page 156: 3rd Cameroon Investment Forum 2009_Holding Slidesj

1. Generation

2. Transmission

3. Distribution

4. Regional interconnection / Export markets

----------------

GENERATION (MEGA PROJECTS 50 MW AND ABOVE IN INSTALLED CAPACITY):

• HYDROPOWER STORAGE : LOM PANGAR HEAD POND TO INCITE CONSTRUCTION OF SEVERAL DOWNSTREAM HEPs

• HYDROPOWER GENERATION: SEVERAL BIG SITES FOR CLOSE TO 5,000 MW BY 2020

• GAS TO POWER GENERATION (650 MW) & FOR WHICH FOR FEASIBILITY OF ALL THREE IN PROGRESS : – KRIBI : COD 2013,

– LIMBE, COD 2013/14

– DOUALA/LOGBABA: 2010

– CAPEX REQUIREMENTS ABOUT US$2.5 Billion (BY 2015) –PRECISION HIGHLY DEPENDENT ON CAPITAL COST FOR IMPORTED ITEMS SUCH AS MACHINERY.

6/25/2009 156

IV.I - INVESTMENT PIPELINE : POWER SECTOR

Page 157: 3rd Cameroon Investment Forum 2009_Holding Slidesj

IV.I - INVESTMENT PIPELINE :

POWER SECTORTRANSMISSION EXPANSION :

1. NATIONAL BACKBONE GRID TO INTERCONNECT INEDEPENDENT GRIDS AND GENERATORS TO SUPPLY LOADS

2. TRANSMISSION OPERATOR WILL BE A REGULATED MONOPOLY AND TO OWN/OPERATE & MAINTAIN ASSETS

3. OPERATOR WILL ALSO CONDUCT MARKET FUNCTIONS IN SPOT AND LONGTERM MARKETS : BALANCING, SCHEDULING/DISPATCH, COMPENSATION AND INVESTMENTS

4. OPERATOR ALSO TO BE INVOLVED WITH EXPORT MARKETS

5. NATIONAL TRANSMISSION CORRIDOR WILL BE DEFINED –ROUTE LENGTH ABOUT 3,000 Km

6. CAPEX REQUIREMENTS: 1. ABOUT US$ 500 TO 700 MILLION (BY 2015)

2. US$ 500 MILLION AFTER

Page 158: 3rd Cameroon Investment Forum 2009_Holding Slidesj

DISTRIBUTION EXPANSION

1. 2025 OBJECTIVE OF ELECTRIFICATION RATES - 75% NATIONAL; WITH 50% RURAL

2. DISTRIBUTION LOADS (MV & LV) SERVICE AREAS ARE BIG –AT INADEQUATELY SERVED (INSUFFICIENT SUPPLY, LOW QUALITY OF SERVICE)

3. INVESTMENTS COMPRISE NEW CONNECTIONS, UPGRADES AND REHABILITATE/RENOVATION

4. AREAS TO BE SERVED BY BACKBONE HV GRID AND OFFGRID SOLUTIONS (RENEWABLES)

5. CAPEX REQUIREMENTS ABOUT US$2.5 Billion (BY 2015) – PRECISION HIGHLY DEPENDENT ON REVIEW OF MARKET DEMAND AND CAPITAL COST FOR IMPORTED ITEMS, ESPECIALLY RENEWABLES

6/25/2009 158

IV.1 POWER SECTOR INVESTMENTS

Page 159: 3rd Cameroon Investment Forum 2009_Holding Slidesj

MAIN PROJECT SCOPE: TRANSMISSION EXPANSION AND DISTRIBUTION:

i. NATIONAL BACKBONE GRID TO INTERCONNECT INEDEPENDENT GRIDS AND GENERATORS TO SUPPLY LOADS

ii. THE NATIONAL TRANSMISSION OPERATOR WILL BE UNIQUE PURCHASER / DISPATCHER OF EXPORT POWER

iii. CAPEX REQUIREMENTS: ABOUT US$500M (BY 2015)

• MAIN CONSIDERATIONSa. MAIN BENEFITS OF INTERCONNECTION OF GRIDS COMES MAINLY

FROM LEAST-COST AND BASELOAD PLANTS (MOSTLY HYDROPOWER)

b. LEASTCOST PLAN AND SECURITY OF SUPPLY ARRANGEMENTS OF NEIGHBOURING COUNTRIES

c. TRANSMISSION GRID AVAILABILITY

d. LEGAL/REGULATORY ASPECTS: REGIONAL POWERPOOL AGREEMENT

6/25/2009 159

IV.1 POWER SECTOR

INVESTMENTSPORTFOLIOS FOR EXPORT MARKETS:

Page 160: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Investment Pipeline needs in

Power sector meet MDGs

Additional Infrastructure investments under various load growth

scenarios by year 2020

8601

13566

343 4501144 1144 1630

2695

4625

7481

0

2000

4000

6000

8000

10000

12000

14000

16000

Low or

'BAU'

Medium High

(without

export)

High (with

export)

Scenario

As

so

cia

ted

in

ve

stm

en

t

(US

$ m

illio

n)

Total investment

Distribution

Generation

Transmission

Page 161: 3rd Cameroon Investment Forum 2009_Holding Slidesj

IV.2 – OIL & GAS PORTFOLIOS FOR

WHICH INVESTMENTS ARE SOUGHTOIL AND GAS PORTFOLIOS (DOWNSTREAM)

1. MODERNISATION AND EXPANSION OF OIL REFINERY : PHASE II1. PHASE I ON-GOING: COMPRISE MODERNISATION AND MANAGEMENT INFORMATION

SYSTEM

2. PHASE II TO COMPRISE :a. DOUBLE PROCESSING CAPACITY ( 2 TO 4 MILLION MT/YR)

b. IMPROVE ON ENVIRONMENTAL MANAGEMENT FACILITIES

3. FEED ESTIMATES – US$800 MILLION/FEED ESTIMATES

2. MODERNISATION AND EXPANSION OF BULK STORAGE FACILITIES FOR REFINED PROJECTS:

a. EXISTING FACILITIES – US$450 MILLION/PRE-FEED ESTIMATES

b. MARINE TERMINALS AT DEEPWATER SEAPORTS (KRIBI AND LIMBE) –ESTIMATES IN PROGRESS

3. IMPROVEMENT IN OPERATIONS FOR THE TRANSPORTATION OF PRODUCTS:

1. DIVERSIFY AND LIMIT RISKS IN PRODUCTS SUPPLY TO MARKETS

2. REDUCE SUPPLY COSTS AND TIME

3. INFRASTRUCTURE REQUIRED WOULD COMPRISE:a. PRODUCTS PIPELINE

b. ROAD TANKERS

c. RAIL WAGONS

d. SEA/OCEAN-GOING VESSELS.

e. RETAIL FACILITIES, ESPECIALLY LPG

Page 162: 3rd Cameroon Investment Forum 2009_Holding Slidesj

IV.3 – Investment Portfolios- Estimated Capex summary

(MAY 09 ESTIMATES)

POWER : 6,000 to 8,000 US$ millions

– Generation: 2,000 to 2,500 US$M

– Transmission: 1,000 to 1,500 US$M

– Distribution: 3,000 to 4,000 US$M

OIL & GAS: 3,620 US$M +– Refining : 800 US$ M

– Bulk storage (inland): 500 US$M (pre-feed)

– Bulk storage (marine @ Douala + two deepwater seaports): 320 US$M(pre-feed)

– Transport (rail + sea + road): 2,000US$M (pre-feed for 2 Million metric tons/yr.)

– Distribution (service stations): TBD

TOTAL: 9 to 11 US$B or annually: 360 to 440 US$M +

– Power sector to capture more than half of capex. Priority should go to transmission; without which demand cannot be served

– However; capex could be higher in distribution/retail segments of power & oil/gas; given ambitious access rate.

Page 163: 3rd Cameroon Investment Forum 2009_Holding Slidesj

V- LOOKING AHEAD

1. ENERGY SECTOR IS VITAL TO ECONOMIC GROWTH IN

CAMEROON; AND INVESTMENT NEEDS FOR ADDITIONAL

INFRASTRUCTURE IS HUGE, WHICH ALONE NEITHER THE PUBLIC

NOR PRIVATE SECTOR CAN FINANCE – THE NEED FOR

PARTNERSHIP AS ENVISAGED UNDER A SPECIFIC POLICY IN

CAMEROON

2. CONTINUOUS IMPROVEMENTS IN THE INVESTMENT CLIMATE FOR

ENERGY SECTOR:

3. OBJECTIVE IS TO INCREASE LEVEL OF SECURITY OF SUPPLY

AND THE VISIBILITY / PREDICTABILITY OF RETURNS ON

INVESTMENTS FOR POTENTIAL INVESTORS

4. KEY ACTIONS INCLUDE:

1. Strengthen regulatory authority

2. Alignment to the Public Procurement Code

3. Multiply bankability studies

4. Publish Rules for open access to power; oil and gas

5. Publish Integrated resource energy plan

6. Disseminate information on sector activities and

opportunities6/25/2009 163

Page 164: 3rd Cameroon Investment Forum 2009_Holding Slidesj

THANK YOU FOR YOUR KIND ATTENTION!

IF YOU HAVE INQUIRIES, PLEASE DO NOT HESITATE TO CONTACT US AT:

MINISTRY OF ENERGY AND WATER RESOURCES

MINEE, P.O. BOX 70, YAOUNDE,

REPUBLIC OF CAMEROON

Tel/ Fax: +237 2222 3400 / 2222 6177

or + 237 2223 5608 (direct to the presenter)

Email: [email protected]

6/25/2009 164

Page 165: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Parallel Sessions - Energy & Environment: A key Enabler of the Business Environment

Forestry & Environment

Page 166: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Paulo CeruttiResearcherCentre for International Forestry Institute

Page 167: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

HE Elvis Ngolle NgolleMinister of Forestry and WildlifeCameroon

Page 168: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Parallel Sessions- Improving Services, Infrastructure & Economic Development

Agro processing

Page 169: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Chair: Philip ClearyDirectorGuinness

Page 170: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Obi-Okpun Wanobi OsaDirector General Palmol Plantations Plc

Page 171: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Louis YindaPresident & Director GeneralSOSUCAM

Page 172: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Chair: Philip ClearyDirectorGuinness

Page 173: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

HE Jean NkueteVice Prime Minister & Minister of AgricultureCameroon

Page 174: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Parallel Sessions- Improving Services, Infrastructure & Economic Development

ICT

Page 175: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Chair: Philippe VandebrouckPresidentMTN Cameroon

Page 176: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Dr Ebot EbotGeneral ManagerANTIC

Page 177: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

HE Bello Bouba MaigariMinister of Post and TelecommunicationsCameroon

Page 178: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Concluding Address

Page 179: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Dr. Diane Acha Morfaw, Solicitor & Barrister at LawBellah Chambers

Page 180: 3rd Cameroon Investment Forum 2009_Holding Slidesj

Sustaining Investment and Growth

Hilton, Yaoundé, Cameroon: 16-19 June 2009

3rd Cameroon Investment Forum 2009and International Investor Day

Steve GodfreyManaging DirectorCommonwealth Business Council