TIDMSAVE
RNS Number : 9616W
Savannah Energy Plc
20 April 2023
20 April 2023
Savannah Energy PLC
("Savannah" or "the Company")
Memorandum of Agreement signed with the Government of
Cameroon
for the 75 MW Bini a Warak Hydroelectric Project
Savannah Energy PLC, the British independent energy company
focused around the delivery of Projects that Matter is pleased to
announce the signing of a Memorandum of Agreement ("MOA") by
Savannah Energy RCM Limited, a wholly owned subsidiary of Savannah,
with the Government of the Republic of Cameroon (the "Government")
for the development of the Bini a Warak Hydroelectric Project (the
"Bini Project") located in the northern Adamawa Region of Cameroon.
A signing ceremony was held today in Yaounde, attended by His
Excellency Gaston Eloundou Essomba, Minister of Water and Energy
for the Republic of Cameroon, His Excellency Dr Christian
Dennys-McClure, British High Commissioner to the Republic of
Cameroon and Andrew Knott, Chief Executive Officer of Savannah.
The 75 megawatts ("MW") Bini Project is expected to provide
clean, stable and affordable power to Cameroon's northern region.
This is anticipated to support both existing local electricity
demand and enable a number of energy-intensive industrial projects,
principally in the cement and metallurgy industries, within the
region. The Bini Project is expected to increase current on-grid
electricity generation capacity in northern Cameroon by over 50%.
There is also the potential for power to be dispatched into
Cameroon's southern electricity grid, upon completion of the
interconnection, financed by the World Bank, of the northern and
southern electricity networks currently planned by the Government
for 2026.
The Bini Project involves the construction of a dam on the Bini
River, together with an 82km(2) reservoir and associated tunnels,
powerhouses, substations and a 225 Kilovolt transmission line
connecting the Bini Project to Cameroon's northern electricity
grid. It is intended to be developed on an independent power
project basis with project sanction expected in 2024 and first
power targeted in the 2027 to 2028 window.
Under the terms of the MOA, Savannah plans to supplement
existing feasibility studies and work with power industry
authorities and development finance institutions to finalise the
development, financing and resumption of construction of the Bini
Project.
Savannah expects to fund the Bini Project from a combination of
its own internally generated cashflows and project-specific
debt.
His Excellency, Gaston Eloundou Essomba, the Minister of Water
and Energy for the Republic of Cameroon, said:
"The Government is delighted to partner with Savannah Energy in
order to deliver clean and affordable electricity to support our
industrialisation plans for northern Cameroon. The Bini Project
will address the current electricity shortages caused by the
hydrology deficit of the Ladgo Dam and reduce the consequent
reliance on expensive thermal generated power in the region.
Our partnership with Savannah is in line with our long-term
"Vision 2035" Master Plan for increasing the electrification in the
country and the National Strategy for Development 2020-2030. The
decision to invest in the Bini Project is a clear indication of the
confidence Savannah has in our country's potential and our legal
frameworks for investment. As a government, we will provide all the
support needed to enable Savannah to deliver first power from this
exciting project in the 2027 to 2028 window."
His Excellency, Dr Christian Dennys-McClure, British High
Commissioner to the Republic of Cameroon, said:
"I am delighted that a British company, Savannah Energy, is
making such a substantial investment in renewable energy in
Cameroon. Cameroon has plentiful hydropower resources which,
through investments like this, can be harnessed to develop the
economy and improve the lives of millions of Cameroonians. This is
a further example of the United Kingdom's commitment to
Cameroon."
Andrew Knott, CEO of Savannah Energy, said:
"I am delighted to announce the signing of the Bini a Warak MOA.
The Bini Project is expected to provide clean, stable and
affordable power to northern Cameroon that will support both
households and industrial projects in the region. It is exactly the
sort of high developmental economic impact project that our
renewable power division is seeking to deliver. I would like to
thank the Government of Cameroon and, in particular, His Excellency
Gaston Eloundou Essomba Minister of Water and Energy for the strong
support we have received in relation to Savannah taking over the
development of the Bini Project. We look forward to working with
the Government of Cameroon and our intended developmental finance
partners as we move this project through the development and
construction phases towards the intended first power in 2027 to
2028.
As a company, Savannah is seeking to continue to expand in
Cameroon and we will continue to review other potential investment
opportunities in the energy and sector. We expect the Bini Project
will make a key contribution towards the attainment of Savannah
Group's targeted 1GW of renewable energy projects in motion by the
end of 2023."
For further information, please refer to the Company's website
www.savannah-energy.com or contact:
Savannah Energy +44 (0) 20 3817 9844
Andrew Knott, CEO
Nick Beattie, CFO
Sally Marshak, Head of IR & Communications
Strand Hanson (Nominated Adviser) +44 (0) 20 7409 3494
James Spinney
Ritchie Balmer
Rob Patrick
finnCap Ltd (Joint Broker) +44 (0) 20 7220 0500
Christopher Raggett
Tim Redfern
Panmure Gordon (UK) Ltd (Joint Broker) +44 (0) 20 7886 2500
John Prior
Hugo Rich
James Sinclair-Ford
Camarco +44 (0) 20 3757 4983
Billy Clegg
Owen Roberts
Violet Wilson
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR").
About Savannah Energy:
Savannah Energy PLC is an AIM quoted British independent energy
company focused around the delivery of Projects that Matter, active
in Cameroon, Niger and Nigeria.
Further information on Savannah Energy PLC can be found on the
Company's website: www.savannah-energy.com.
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END
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