Identifier
Created
Classification
Origin
08YAOUNDE72
2008-01-28 13:11:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Yaounde
Cable title:  

CAMEROON'S MINISTER OF ENERGY AND WATER ON SECTOR

Tags:  CM ECON ENRG EPET EWWT 
pdf how-to read a cable
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DE RUEHYD #0072/01 0281311
ZNR UUUUU ZZH
R 281311Z JAN 08
FM AMEMBASSY YAOUNDE
TO RUEHC/SECSTATE WASHDC 8503
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS YAOUNDE 000072 

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT PLEASE PASS USTDA

E.O. 12958: N/A
TAGS: CM ECON ENRG EPET EWWT
SUBJECT: CAMEROON'S MINISTER OF ENERGY AND WATER ON SECTOR
CHALLENGES


UNCLAS YAOUNDE 000072

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT PLEASE PASS USTDA

E.O. 12958: N/A
TAGS: CM ECON ENRG EPET EWWT
SUBJECT: CAMEROON'S MINISTER OF ENERGY AND WATER ON SECTOR
CHALLENGES



1. (SBU) Summary: Cameroon Minister of Energy and Water
Jean Bernard Sindeu realizes there is a serious energy
deficit, costing the economy an estimated 1-1.5% of annual
GDP growth. He is planning a major expansion in the
electricity sector but foresees continued significant supply
shortfalls in 2008. He praised USTDA support for their 2001
and 2007 missions in Cameroon to explore a number of possible
energy projects. The Minister discussed possible new private
investments in the energy sector, including renewable energy
and oil, and noted continuing problems with water
distribution. End summary.

The Troubled Power Sector
--------------


2. (U) In a recent courtesy call by Ambassador, Minister of
Energy and Water Jean Bernard Sindeu said Cameroon's
electricity sector was in transition. Major reforms in past
seven years led to the privatization of electricity utility
company to a U.S. firm (AES/Sonel),the creation of an
electricity regulatory board, and a new rural electrification
agency. He hoped to see a continuing reduction in the role
of the state in power generation, distribution and
transmission.


3. (U) He acknowledged that AES/Sonel inherited a degraded
infrastructure and has had many difficulties meeting the
energy demand of both private households and the industrial
sector. However, in 2007 AES/Sonel made some investments in
transmission and generation. Sindeu anticipated major
expansions in the sector, with the addition of an AES gas
plant at Kribi, and five new hydroelectric dams at Lam
Pangar, Nachtigal, Memve'ele, Colomine, and Birni a Warak.


4. (U) Nevertheless, he said the economy is losing 1-1.5%
GDP growth each year because of the poor quality and
insufficient supply of electricity. He thought 2008 would be
a difficult year for the electricity sector, with an 8% rise
in demand every year and rising frustration with the sector's
problems, especially in rural areas. He appreciated the
USTDA's cooperation in exploring the feasibility of the
construction of two gas plants in Kribi and Limbe and hoped
the U.S. could help with financing energy projects. The GRC
has an energy action plan, but lacks the funding to fully
implement it, he said, adding that "there is no magical
touch" to solve this problem.

Energy Options
--------------


5. (U) The Minister's staff outlined several renewable
energy options, including a prospective $2 billion investment
by the U.S.-based Grynburg Petroleum Company to produce
ethanol from sugar and biodiesel from jatropha. The GRC is
reportedly in the final stages of developing a biocarbon
policy and is considering solar power alternatives, with two
solar pilot projects in the south. Cameroon imports LPG for
cooking but has bottlenecks because of insufficient storage.
Oil production has been falling since 1985 but several
companies are considering new exploration investments. An
oil pipeline is contemplated between Limbe's refinery and
Douala and possibly between Malabo and Douala (for LNG).

Water
--------------


6. (U) Minister Sindeu noted that Cameroon has serious
water problems as a result of poor infrastructure and
climactic conditions, especially in the arid north and
Douala. The GRC had recently privatized water distribution
to a Moroccan firm serving 107 urban centers. Sindeu said he
would welcome U.S. assistance in this sector.

Comment
--------------


7. (SBU) An engineer and career civil servant, Sindeu was
logical, candid and informed, bringing an impressive team of
his energy experts into the meeting. Electricity problems
are a top business complaint in Cameroon and a major, growing
frustration for the population at large. Unfortunately,
Sindeu was not hopeful for a major change in the short term
(a more downbeat prognosis, he said, than AES/Sonel would
give). While Cameroon is said to have the second biggest
hydroelectric potential in Africa (after the DRC),only about
one percent of that capacity has been developed, with three
dams along the Sanaga and Benoue rivers, generating a total

of 722 megawatts. AES/Sonel operates 42 small thermal plants
but its operations are plagued by inefficiencies. Water
problems are also chronic, with 34 percent of the population
lacking access to potable water. There are additional U.S.
commercial opportunities in these sectors, which we will
continue to explore.
GARVEY