Cameroon: Determining the viability of biomass initiatives
CPCS infrastructure advisors undertake due diligence on a 6.5 MW biomass pilot project.
Africa needs a staggering amount of money to fund its infrastructure. It’s well over US $126 billion a year. InfraCo Africa contributes to this total by providing funding for early-stage infrastructure projects so that they can eventually attract private investment. Biomass initiatives in Cameroon count as such projects and have elicited much interest from the development group.
However, choosing the right projects to fund always requires prudent analysis. This is why InfraCo Africa relies on CPCS to examine and make recommendations on such matters.
In Cameroon, CPCS is carrying out due diligence on a 6.5 MW biomass pilot project part of 76 MW portfolio.
What we’re doing
The CPCS formula includes these steps:
- Liaise with project sponsors and advisors
- Undertake a financial, technical and legal assessment of the projects
- Conduct research on country and contextual background
- Assess 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 study intends 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.