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African Infrastructure Investment Managers has announced its industrial partnership with Hydroneo Afrique, a wholly-owned subsidiary of MECAMIDI, to develop a pipeline of hydro power plants across Africa.
The partnership will facilitate the development of a pipeline of small and medium hydro power plants in Cameroon, Cote d'Ivoire, Gabon, Ghana and Mozambique. These hydro power plants will better serve the growing energy demands across Africa, and facilitate the long-term economic growth and competitiveness of the continent.
The two companies intend to establish a 50/50 joint venture that will develop, finance, build, own and operate a number of small and medium hydro power plants in Africa. With a total investment of approximately US$500 million, these projects are expected to represent an installed capacity of 200 MW over the next five years.
Approximately 15 percent of the world's hydro power potential is in Africa, of which less than 10 percent is currently utilised. The objective of the partnership is to unlock the hydro power potential in Africa mainly through run-of-river hydro power plants, which have less of an environmental and social impact than large-scale hydro power projects.
AIIM CEO, Jurie Swart, stated:
"This partnership represents an attractive opportunity to support the development of a pan-African infrastructure platform. Africa has extensive untapped hydro power potential and small and medium hydro power plants would be a holistic solution to Africa's growing energy-generation capacity gaps. MECAMIDI are well known for their expertise in the hydropower industry and we look forward to a successful long-term relationship."
Hydroneo Afrique CEO, Samuel Zekri, commented:
"Following the success of the first set of investments in East Africa and several projects currently in development across Kenya, Uganda and Rwanda, MECAMIDI - through its affiliate Hydroneo Afrique - is thrilled to partner with AIIM, a well-established leader in infrastructure investment, to jumpstart Sub-Saharan Africa's hydropower industry. This strategic alliance will allow us to make the most out of the region's great hydro potential and address its ever growing energy need."