- (Business in Cameroon) – The Finance Ministry is negotiating a revolving credit line of CFA80–100 billion with Société Générale Cameroun and other banks to ensure timely payments to Nachtigal Hydro Power Company (NHPC).
- NHPC invoices Éneo CFA10 billion per month under the 2018 power purchase agreement, while Éneo currently pays less than 50% of monthly bills.
- Éneo’s debt stood at CFA800 billion at end-2024, making the utility a major fiscal risk for the State.
The Ministry of Finance (Minfi) is negotiating with Société Générale Cameroun and several local banks to create a new financial guarantee that will secure regular payments to Nachtigal Hydro Power Company (NHPC), the operator of the Nachtigal hydropower plant. Documents reviewed by Business in Cameroon show the negotiations concern a revolving credit line of CFA80 to 100 billion arranged by Société Générale Capital Securities Central Africa. Société Générale Cameroun is one of the lenders. Other banks are finalising their participation. A source close to the process said: “Minfi recently signed the agreement with Société Générale Cameroun, but other local banks still need to sign.”
This 24-month facility aims to settle Éneo’s unpaid bills owed to NHPC under the 2018 power-purchase agreement and to replenish the stand-by letter of credit (SBLC) issued by Société Générale on behalf of the State in favour of NHPC. The SBLC stands at €86 million and benefits from a World Bank guarantee.
The talks supplement the sovereign guarantee already provided by the State to Société Générale Paris. The initial €86 million guarantee is now more than 85% consumed, leaving less than €10 million available. A source familiar with the matter said: “The guarantee is not exhausted yet, and it must not be, because it is counter-guaranteed by the World Bank.”
Éneo under pressure
NHPC started commercial operations at the 420-MW Nachtigal dam and invoices Éneo CFA10 billion per month regardless of actual consumption, as per the contract with the State. However, delays in transmission-line construction from Nyom and the partial commissioning of the evacuation line to Yaoundé still limit the use of the plant’s full output.
Éneo faces severe cash-flow stress and has failed to meet contractual obligations since February. The utility was required to provide a bank guarantee to cover non-payment risk, backed by a sovereign guarantee. Without financing agreements, Éneo could not honour that requirement, prompting NHPC to trigger the guarantee at Société Générale Paris. Payments currently cover less than 50% of monthly invoices, according to information gathered by Business in Cameroon. Éneo has not issued any public update on its financial situation.
Minfi is negotiating the new credit-guarantee facility to avoid disruption of Nachtigal financing and ensure NHPC continues to receive payments even if Éneo defaults. A stakeholder involved in the talks said the government wants to protect Cameroon’s credit rating and financial credibility to maintain investor confidence.
The situation at Éneo remains worrying. According to the Compact Energy Country report from the Ministry of Water and Energy (Minee), Éneo posted total debt of CFA800 billion at end-2024, including CFA500 billion owed to suppliers and CFA80 billion in receivables. Minee classifies the company as a major budgetary risk for the State. Internal documents describe Éneo as “a factor likely to cause a gap between budget forecasts and execution” due to its continued financial deterioration and high probability of default.
Amina Malloum
