Meridiam has signed a 33-year concession contract with the Government of Gabon (GoG) for the 34-MW run-of-the-river Kinguele Aval hydropower plant. Located on the Mbei River, 100 km East from Libreville, The Kinguele Aval Hydropower Project will deliver about 13% of the electricity needs of Libreville the capital city of Gabon. This power plant will contribute to replacing thermal power capacities and will save more than 150,000 tonnes of CO2 emissions per year.
The concession project includes the construction of a gravity concrete weir, a power plant, a stilling basin, and a substation. Construction is scheduled to start in the second quarter of 2020, with commissioning scheduled for the end of 2023.
Meridiam will own 60% of the Kinguele Hydropower project company with its partner FGIS (the sovereign wealth fund of Gabon) owning 40%. The EUR150 million (US$166.21 million) Kinguélé Aval project is expected to be 75% financed by leading development banks in Africa and around the world, including the International Finance Corporation (IFC), the African Development Bank (AfDB), the Development Bank of Southern Africa (DBSA) and the Islamic Development Bank (IDB).
A comprehensive Environmental and Social Impact Assessment in line with IFC performance standards confirmed the low impact on fauna and flora and that no population will need to be resettled. Nevertheless, concrete actions will be implemented to the benefit of the environment and the social communities:
- A biodiversity action plan will protect or rebuild habitats of endangered species with a positive net gain. And financial support will be provided for research in botany and fish studies.
- Rural electrification will also be addressed with the connection of the village of Andock Foula located 3 km from the site and currently without electricity.
- Hospital staff and patients will be provided with new and modern equipment to ensure the effective treatment of populations and workers on site.
- A fund will be set up to support local initiatives and assist local communities in developing sustainable activities.
