EDC Board salutes management for breathtaking achievements.

The Board Directors of the Electricity Development Corporation could not stay indifferent to the positive financial balance sheet and breathtaking achievements recorded in the year 2022.

The landmark achievements, which are greatly contributing to curbing hitherto persistent blackouts in the country and giving a new lease of life to Cameroonians nationwide, were presented to the Board of Directors by the results-proven EDC General Manager.  

This was during EDC’s 51st Ordinary Board meeting, held at its Yaounde Head Office on July 21, 2023.

It was chaired by the level-headed Board Chairman of EDC, Minister Arrey Mengot Nkongho, who doubles as Minister in charge of Special Duties at the Presidency of the Republic.

The unanimous appreciation of the Board of Directors on the management of EDC, is contained in a release the pragmatic Board Chairman, Minister Mengot, issued at the end of the 51st Ordinary Board meeting, a copy of which The Guardian Post obtained.

The remarks followed deliberations made after a rigorous and meticulous examination of the presentation of EDC’s performance report for the 2022 fiscal year, by the General Manager, Dr Théodore Nsangou.

The Board of Directors had also carefully reviewed EDC’s accounts for 2022 fiscal year, as at December 31, 2022, as well as review the draft Board of Directors’ Management Report, on the functioning of the corporation during the 2022 financial year.  

“After deliberations on the Performance Report for the 2022 Fiscal Year, presented by the General Manager, the Board of Directors expressed satisfaction with regards to the attainment of the objectives assigned to management within the framework of the Performance Project of the Fiscal Year in question, despite the fact that the corporation’s financial situation is still unstable,” partly read the release, issued by the Board Chairman, Minister Mengot.

The Board, the release added, “was particularly pleased with the success of the eighth year of regularisation of the Sanaga River, by the Lom Pangar Reservoir Dam”.

The Board of Directors of the EDC that supervises the construction of the Lom-Pangar Hydroelectricity Dam, also saluted the successful commissioning of the first turbine, that went operational on May 23, and has injected new megawatts of electricity into the line that feeds Bertoua, capital of the East Region and surrounding communities.

“The Board of Directors was also satisfied with the successful commissioning of the first turbine at the Lom Pangar foot plant, which would permit the first megawatts of the power plant to be introduced into the network and improve upon the supply of electrical energy in Eastern Region, including the perspective of the commissioning of the four (04) generators before November 2023,” added the release.

Positive financial balance sheet lauded

The Board of Directors also saluted the EDC General Manager, after following with rapt attention, the presentation of the corporation’s accounts for the 2022 fiscal year, the reports of the external auditor as well as the draft of the Board of Directors’ Management Report for the fiscal year as of December 31, 2022.

After deliberations on the financial report, the Board of Directors, the release detailed, “unanimously approved the corporation's accounts” for the 2022 fiscal year.

The sum of two hundred and three billion, seven hundred and five million, one hundred nineteen thousand, six hundred (203, 705, 119, 600) FCFA, was approved as total balance sheet.

On the other hand, the board approved the sum of ten billion, six hundred and thirty-eight million, five hundred and ninety-seven thousand, seven hundred and forty-one (10, 638, 597, 741) FCFA, as turnover.

The Board of Directors equally approved the sum of four billion, seven hundred and seventy-three million, seven hundred and fifty-seven thousand, eight hundred and thirty-three (4,773 757 833) FCFA, as profit for the period before tax.

The Minister Mengot-led Board also approved the net profit for the corporation after taxes, to the tune of three billion, one hundred and five million, nine hundred fifty-six thousand, six hundred and forty-three (3,105,956,643) FCFA, for the 2022 fiscal year.

The session rounded up with the approval of the Board of Directors' Management Report on the functioning of the corporation during the 2022 financial year.

“At the end of the proceedings, the Board Chairman, on behalf of the board, expressed his satisfaction and congratulated the top management of EDC, for the quality and relevance of the documents presented as well as for the good results obtained and granted full discharge for its management in the course of the fiscal year 2022,” concluded the release from the Board Chairman.

Major projects in view for 2023

The Electricity Development Corporation, EDC, it should be said, is a strategic state structure, with key role in the Head of State’s emergence vision.

Speaking last May during a training organised to bring journalists up to light with developments in the electricity sector, EDC General Manager, also unveiled some projects the corporation intends carrying out this year.

Dr Theodore Nsangou revealed that the EDC has huge ambitions in 2023. He mentioned plans to permanently take the East Region out of darkness, thanks to constant electricity supply.

He revealed that 150 villages in the region are said to benefit from the project, added to a similar project in the North and Far North Regions, which benefited 300 villages.

Enlightens journalists on electricity sector coverage

Conscious of the power of information and in a bid to keep Cameroonians abreast with developments within the electricity sector, EDC management, organised a training for journalists.

Participants were drilled on mastering the stakes and challenges of the electricity sector. They were also armed with information on the various changes within the sector in order to accurately and reliably inform Cameroonians.  

Dr Theodore Nsangou, had used the training to stress that giving journalists access to correct information at a time citizens are asking a plethora of questions, was key to the corporation.

Dr Nsangou said through the initiative, truths will be uncovered, contrary to fake news, which circulates on social media and ensure that journalists are on the same page with regards to the energy sector.

“It is an exchange for us to inform journalists in order for them to better enlighten the public on energy-related issues. We hope that this exchange will better help journalists on what the government is doing and will continue to do to take our country out of the dark,” he had said.

Dr Nsangou had added that: “It is important for us, especially at a time we are finalising very important projects assigned to us by the government.  What we expect from journalists is to tell the truth. Our role is to give you all the information so that you can in turn inform Cameroonians”.

Media men and women were also given details on the roles of each actor involved in the electricity sector.  

Major breakthroughs in Lom-Pangar Hydroelectricity Dam

The Electricity Development Corporation, EDC, that supervises the construction of the Lom-Pangar Hydroelectricity Dam, made another landmark achievement as the first turbine went operation last May.

The major feat recorded by EDC has helped in injecting new megawatts of electricity into the line that feeds the East Region and surrounding communities.

It was realised with the financial and technical support of the African Development Bank, AfDB; the Development Bank of Central African States, BDEAC.

The first turbine, the EDC General Manager had disclosed during a visit with Board of Directors, was able to transfer eight megawatts from the evacuator at Lom Pangar to the transformation post in Bertoua.

Dr Nsangou said the achievement was a huge relief to the Bertoua community as far as reducing their power supply problems is concerned.

“It is a buffer of oxygen to the entire East Region that can now carry out its development projects and other activities that require substantial amount of energy supply in serenity,” the General Manager had stated.

EDC: Translating President Biya’s vision to reality  

Despite financial constraints, the management of has stayed committed and is silently translating the vision of the Head of State to reality.

The commissioning of the first turbine at the Lom-Pangar Hydroelectricity Dam, it should be recalled, was a firm commitment of EDC to keep a promise that President Paul Biya had made to the population of East Region and make it energy-sufficient, at least in the short-term.

Four other turbines to go operational this year!

EDC Board of Directors, it should be said, gave hints that the remaining four turbines might be commissioned before November this 2023. The hints of the Board is another welcome relief for the population of the area.

This is so as Dr Nsangou, had stressed that by the time all the four turbines that are directed to that part of the country are turned on, there will be more than enough electricity to meet the energy needs of the East Region.

This is so as because the energy needs of the entire East Region stands at barely 12 Megawatts. But since the second turbine is designed to go operational by June 15, with the supply of another eight megawatts, it will bring the total from the two turbines to 16 Megawatts.

This will be more than what the East Region stands in need. The interconnectivity distribution system that the national network has put in place, it should be said, will ensure that other parts of the country that have higher demand for energy and are energy deficient, will also benefit from the increase in supply.

This is especially for hydroelectric projects that exploit water from the River Sanaga. The process of redistribution through the interconnected network is most effective during seasons of high-water levels on the river, it has been explained.

The construction of the Lom-Pangar Hydroelectricity Dam, it should be said, was officially launched on September 20, 2018, by the Minister of Water and Energy, MINEE, Gaston Eloundou Essomba; with capacity to generate some 30MW, into the national grid.

Energy sufficiency as dev’t prime mover

Government believes that sustainable development cannot take place in an environment where there is no electricity. Therefore, availability of energy in both quality and quantity creates an enabling environment for, not only economic activities to be boosted, but other aspects of development. And since the country is endowed with vast hydroelectricity potential, exploitation could serve as a catalyst towards accelerating national development.

Experts see hydropower as a clean, large-scale and affordable source of renewable energy that has the potential to play a major role in addressing the nation’s power supply crisis.

At present, barely 24 percent of Sub-Saharan Africa's power needs are met by hydropower, with the potential to increase this share to 40 percent over the coming years. This part of the continent has identified some 50GW of hydropower for immediate development, with varying costs depending on the site.

Another advantage of hydropower is that it represents the lowest cost among large scale renewable energy sources in the region-with potential for transformative, growth-inducing developmental impacts.

“Hydropower is a valuable complement to other forms of renewable energy, as it provides a base load and can store surplus generation during off-peak periods. Simultaneously, hydropower contributes to climate change mitigation (by reducing carbon emissions compared to thermal generation) and adaptation (by providing storage capacity),” experts say.

Cumulative national potential

Researchers say Cameroon has the third largest hydropower development potential in Sub-Saharan Africa, estimated at over 12,000 MW, with the Sanaga River basin providing nearly half of the untapped potential.

However, the total installed electricity generation capacity from all sources in Cameroon is currently only 933 MW, 77 percent of which is hydro capacity and the remainder relatively costly and polluting thermal capacity.

“Cameroon is a classic example of an African country whose economy has been held back by an infrastructure deficit,” experts insist.

Governance challenges, they note, have also impeded economic growth necessary to reduce poverty in a sustainable manner.

Significant underinvestment in infrastructure has further eroded Cameroon’s competitiveness and growth prospects.

In a recent survey, two-thirds of manufacturing firms cited electricity deficiencies as a constraint on business. Estimates suggest that addressing Cameroon’s power deficiencies could boost annual per capita economic growth by as much as 1.3 percentage points.

That is why an important step in developing Cameroon's largely unexploited hydropower potential is the construction of a regulating dam at the Lom-Pangar site in the Sanaga River basin.

Experts say the regulating dam will increase the guaranteed all-season hydropower capacity on the Sanaga River by approximately 40 percent. It will immediately translate into the addition of 120MW at existing downstream hydropower plants as they will also generate electricity in the dry season.

In the medium-term, the Lom-Pangar Dam will allow for further downstream development of large-scale hydropower plants by ensuring firm all-season water flows.

In this respect, the project is a typical public good. In addition, the Lom-Pangar Hydropower Project, LPHP, powerhouse will generate 30MW of electricity and will provide first time electricity services to over 2,400 rural households and improve reliability of supply to about 22,000 households in the Eastern Grid.

Experience shows that when industry serves as a major power customer, the development of hydropower plants can take place relatively quickly. With Cameroon’s domestic electricity demand growing at about five percent per year, it would take years for the country to absorb additional capacity generated by the development of just one of the hydropower sites on the Sanaga River without off-take by a reliable, industrial anchor customer.

Government has therefore designated some hydroelectric sites in the Sanaga basin for development by Rio Tinto Alcan, RTA, due to its capacity to mobilise capital. At the same time, measures have been taken to balance and respond to competing demands for energy from all consumer groups as Cameroon’s electricity demand grows.

For this reason, the 2011 Electricity Law stipulates that downstream hydropower sites must be optimised and includes provisions for auto-producers to supply electricity to the national grid. RTA has committed that it will make available approximately 600 MW of firm power capacity to the public grid by 2030.

The LPHP is economically viable under various downstream development scenarios. The economic returns associated with these downstream investments will depend on the allocation of electricity to industry and the grid for the public utility.

In the long-term, availability of power for export will depend on the development of future domestic demand, especially that of large industrial users. Regional power trade would also be contingent on the eventual development of a Central Africa Power Pool, as well as a major expansion in transmission networks and interconnections.

The project’s economic and financial analysis shows that the highest development impact of further hydropower generation in the Sanaga basin is obtained by industrial users making lumpy investments in hydropower and selling part of the electricity they produce into the public grid for other users at a cost-reflective price.

The obligations of auto-producers to provide part of the electricity produced into the public grid, combined with the requirement for these auto-producers to competitively tender works, provides a solid basis to ensure that hydropower generation by auto-producers will ensure additional firm low-cost electricity for consumers. At the same time, a water tariff will ensure that all hydropower producers pay for the investment and operation costs of the LPHP, experts say.

They assure that the potential hydropower sites downstream of Lom-Pangar are among the most attractive power assets in Cameroon, with relatively lower production costs, compared to other sites and alternative sources.

Advantages of cheap electricity

Lower electricity generation costs, and resulting lower electricity tariffs, will spur economic growth in a number of ways.

Firstly, it will facilitate affordable household electrification in Cameroon, consistent with the United Nations’ target of universal electrification by 2030.

Taking into account existing water tariffs, average generation cost in Cameroon would decrease by 11.4% due to the Lom-Pangar regulating dam over the next ten years. In the same vein, consumer tariffs would decrease by 4.1%.

Secondly, it will stimulate the development of value-added activities in Cameroon's broader economy. Some of the most promising economic activities include the processing of timber into wood products, development of agribusinesses and service industry, especially in urban areas.

Thirdly, hydropower development will make possible the tripling of the scale of Cameroon's aluminum industry with an estimated Gross Domestic Product, GDP, impact of four percent over the period 2015-2020 and seven to eight percent over the period 2020-2030 as well as the creation of 20,000-35,000 jobs over the next decade.

Experts therefore consider the LPHP as a unique opportunity to unlock Cameroon’s hydropower potential, decrease power costs to attract new investors.

Minister Mengot’s defining role

The role of the Minister of Special Duties at the Presidency of the Republic, H.E. Victor Mengot Arrey Nkongho, who doubles as EDC’s Board Chair, in the landmark achievements of the Electricity Development Corporation, has been defining.

Minister Mengot holds his place in the counting of EDC’s achievements, not just because he is the Chairman of the corporation’s Board of Directors but given his expertise as an engineer of world class.  

At the helm of EDC, is a mix of Minister Mengot, as Board Chairman and Dr Theodore Nsangou, as General Manager. Both are hailed and spotlighted as a never-seen pair at the helm of a public institution, who have worked in quietude to produce earth-shattering results.

Like most observers have repeatedly said of President Biya’s ability and wisdom to pair his collaborators to contribute to nation-building, the choice of Minister Mengot as EDC Board Chairperson and Dr Theordore Nsangou, as General Manager, the results show, is a perfect blend.

It goes without saying that the launching of the first megawatts from the Lom-Pangar Dam on May 23, 2023, came on the heels of dexterous guidance from Minister Mengot to the EDC General Manager and his team.

Even in the face of obstacles, Minister Mengot, sources at the EDC have told The Guardian Post, used his incorruptible posture, experience and professional knowhow as an engineer of international standing, to offer advice on which road to take.

Unlike in other corporations wherein the Board Chairman and the General Manager are always in a cat-and-mouse game, Minister Mengot, many who know the importance of the Lom-Pangar Dam project to Cameroon’s development say, must be saluted for creating an exceptional environment of dynamism, serenity and conviviality for things to go on smoothly.

As a civil engineer who has transcended several facets in the Biya government, Minister Mengot, it is being said, works toe-to-toe with the EDC General Manager in putting Cameroon first and implementing the instructions of the Head of State, President Paul Biya, relating to the project the Lom-Pangar Dam Project.

His solid professional background and expertise garnered over the years, having also at onetime served as Inspector General at the Public Contracts Regulatory Agency, many say, are playing key roles in unlocking challenges encountered and producing the landmark EDC results being celebrated nationwide today.