Cameroon: Determining the viability of biomass initiatives
CPCS infrastructure advisors undertake due diligence on a 6.5 MW biomass pilot project.
Africa requires well over US $125 billion per year to fund its infrastructure. InfraCo Africa contributes by providing funding for early-stage infrastructure projects so that the projects can attract private investment. Biomass initiatives in Cameroon have elicited much interest from the development group.
However, choosing the right projects to fund requires prudent analysis. This is why InfraCo Africa relies on CPCS to inform its decisions.
In Cameroon, CPCS carried out due diligence on a 6.5 MW biomass pilot project part of 76 MW portfolio.
CPCS followed these steps:
- Liaised with project sponsors and advisors
- Undertook a financial, technical and legal assessment of the projects
- Conducted research on country and contextual background
- Assessed remaining steps to reach bankability and financial close
“We can look at raw materials to tell if a project is a safe investment opportunity for InfraCo Africa,” says Livia Murray, infrastructure development expert at CPCS.
“If there’s not enough raw materials to cover the lifecycle of the biomass plant, then it may not be a good investment.”
The intent of the study was to contribute to InfraCo Africa’s efforts to alleviate poverty and develop high quality infrastructure projects in Sub-Saharan Africa.
Since 2004, InfraCo Africa has mobilized US $1.1 billion in investment from Development Finance Institutions (DFIs) and the private sector. This investment has impacted 8.5 million people and created over 4,200 jobs.