Cameroon recently signed a loan agreement worth approximately 80.5 billion FCFA ($134 million) with the Islamic Development Bank (IsDB) to finance the interconnection of its electrical grid with that of Chad (PIRECT).
This project aims to enhance electricity access in regions that often lack basic public and social service infrastructure, thereby fostering development.
Financial Support for the PIRECT Project
The IsDB funding will be used to construct four high-voltage electrical substations, according to Alamine Ousmane Mey, the Minister of Economy, Planning, and Regional Development.
This agreement follows a 178 billion FCFA ($296 million) financing package secured from the World Bank in December 2023.
The total project cost stands at 557.5 billion FCFA ($928 million), with additional support from the African Development Bank (AfDB) contributing 169.2 billion FCFA, the European Union providing 19.7 billion FCFA, and the two countries themselves contributing 56.2 billion FCFA, of which Cameroon is responsible.
Strengthening Energy Infrastructure and Integration
The PIRECT project aims to reinforce the energy infrastructure of Chad and Cameroon while facilitating their integration into the Central African Power Pool (PEAC).
Scheduled for completion in 2027, this initiative will enable Cameroon to become an electricity exporter, with a projected supply of 100 megawatts to Chad, as reported by Investir au Cameroun.
Additional Infrastructure Development
Furthermore, the project will facilitate the construction of 566 km of 225 kV lines and two additional substations in Cameroon. This infrastructure is designed to serve 409 localities in the northern regions of Adamaoua, Far North, and North.