Globeleq and Government of  Cameroon Sign Development Agreement

27 August 2007 (London) - Globeleq, the emerging markets power company, has signed an agreement with the government of Cameroon to develop the new 200 megawatt (MW) Memve'ele hydroelectric generating plant on the N’tem  River in Cameroon's South province.

Under the terms of the framework development agreement, Globeleq – through its subsidiary Sud Energie Limited – and the government of Cameroon will define which activities will be performed by each party prior to the granting of a concession for the hydropower station. In the initial period of the agreement Globeleq will undertake some preliminary technical and commercial studies.  The government will be responsible for the execution of the environment and social impact assessment and the feasibility studies related to the transmission line and access roads.  The exclusive agreement has a maximum duration of two years.

Speaking at the August 8, 2007, signing ceremony, Finance Minister Polycarpe Abah Abah said, “The signing of this convention is a giant step in resolving this energy crisis that very negatively impacts our economic growth."   The Minister is pictured below with Globeleq Vice President David Grylls.

Globeleq’s Vice President for Business Development David Grylls said, “As Globeleq works to safely add more reliable power in the emerging markets, we are very excited about Memve'ele.  We look forward to working with our local partner and the government of Cameroon, as well as with all the stakeholders in the project.”

Pending the outcome of the studies to be conducted under the framework agreement, construction could start at the end of 2008 with the plant generating electricity by the middle of 2013.   The project will have a 25 year operating concession after which ownership and management transfer to the government of Cameroon.  As with all of Globeleq’s projects, Memve'ele will be developed, built and operated following applicable World Bank guidelines and Globeleq’s business principles.