Hydroneo Afrique and African Infrastructure Investment Managers (AIIM) are partnering to develop a pipeline of small hydropower plants across Africa.
The partnership will facilitate the development of a pipeline of small plants in Cameroon, Cote d’Ivoire, Gabon, Ghana, Guinea, Mozambique and other countries, according to a press release. These plants will better serve the growing energy demands across Africa and facilitate the long-term economic growth and competitiveness of the continent, the two companies say.
Hydroneo Afrique and AIIM will establish a 50/50 joint venture that will develop, finance, build, own and operate a number of small hydropower plants in Africa. Total investment is to be US$500 million, and these projects are expected to represent an installed capacity of 200 MW over the next five years.
About 15% of the world’s hydropower potential is in Africa, of which less than 10% is currently utilized, a press release says. Building run-of-river plants will lessen the environmental and social impact as compared with larger hydropower projects, the companies say.
Hydroneo Afrique is a wholly-owned subsidiary of Mecamidi, a manufacturer and developer of small and medium hydropower plant equipment. Mecamidi has five factories across three continents and has equipped hundreds of power plants representing a total installed capacity of 4,000 MW.
AIIM is a subsidiary of Macquarie and OldMutual Investment Group. AIIM’s power portfolio has a generating capacity of more than 1,000 MW.
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