35-MW hydropower plant developed on the Mbei River

Background

In accordance with the “Plan Stratégique Gabon Émergent”, the Gabonese Government is committed to providing its people with affordable and clean electricity, by increasing the country’s renewable energy mix to 80%(1), by using hydro as baseload power. In this context, the Gabonese Government signed a development agreement for Kinguele Aval with Meridiam and the FGIS (the Gabonese sovereign fund) in March 2017.
The Kinguele Aval Hydropower Project will deliver about 13% of the electricity needs of Libreville, the capital city of Gabon. This power plant will contribute to replacing thermal power capacity and will avoid more than 150,000(2) tonnes of CO2 emissions per year.
The Project consists of the design, building, financing, operation and maintenance of a 35-MW hydropower plant developed on the Mbei River and a substation. It is very close to the transmission line connecting the two existing hydropower plants upstream to Libreville, therefore no additional transmission line is required. A 33-year concession agreement (inclusive of three years of construction) was signed with the Ministry of Economy, the Ministry of Budget and the Ministry of Water and Energy in October 2019.

Stage:

Under construction

SDG Achievements and Roadmap:

SDG 5: Gender Equality
In December 2022, Kinguele Aval joined the IFC Energy2Equal programme: a four-year initiative, launched in partnership with the Government of Canada, fostering partnership with private sector renewable energy companies to foster gender equality.

SDG 7: Affordable and clean energy / SDG 13: Climate action
The project represents 10.5% of the renewable energy capacity of Gabon. Kinguélé Aval is eligible to UN’s Carbon credits with 73,000 tons yearly saved*.(*Amount of CO2 tonnes that would be emitted based on the country energy mix in 2023)

SDG 8: Decent work and economic growth
The project is expected to create 700 jobs during construction and 25 for operation of the plant.

SDG 11: Sustainable cities and communities
A local monitoring committee has been set up. The project signed several agreements to contribute to the economic and social development.

SDG 15: Life on land
A biodiversity action plan was developed with all key stakeholders. The offset area is 823% of the impacted natural habitats, achieving Net Gain per IFC PS6. Mitigation measures include downsizing the project, creating two nurseries, and transplanting protected flora species. Extensive monitoring and scientific research will continue throughout the project.

ESG/SDG key facts

The ESIA process, managed by Meridiam and its E&S advisors, has confirmed a low impact on fauna and flora and that no resettlement of local population would be required.

A biodiversity action plan has been deployed in line with IFC PS, achieving net gain. The project converts up to 2,000 ha of forest into a protected area. The decree was approved in November 2022 and signed in February 2023, marking a major milestone for Gabon and future hydropower investments.

A fund has been set up to support local initiatives and assist communities in developing sustainable activities, such as:

• Rural electrification will be provided to the nearby village of Andock Foula (currently off-grid) located 3 km from the Project site. MV line is currently being erected and 18 solar public lighting posts have been provided and installed in Andock Foula.
• Water pumps have been installed in two areas of the village.
• A dispensary with skilled staff and modern equipment is operating on-site for workers and communities. The Project Company is also supporting Kango’s departmental hospital with new equipment for the lab and delivery room, 80% of which has been delivered. The Project Company rehabilitated Andock Foula school which was able to open for the beginning of the school year 2022 after 6 years of unavailability with a capacity of 30 students.
• In addition to the above initiatives, the Project Company will erect two communication towers for Operation Phase needs. The communities, who do not have network coverage, will directly benefit from this investment as soon as the towers are commissioned (by Q3 2025).

Learn more on the project:

Financial close on the Kinguélé Aval hydroelectric power plant

Meridiam signs Kinguele Hydropower plant concession contract in Gabon

Kinguélé aval environmental and social impact assessment

Source (1): Plan Stratégique Gabon Emergent, Vision 2025 et Orientations Stratégiques 2011-201

Source (2): Plan Stratégique Gabon Emergent, Vision 2025 et Orientations Stratégiques 2011-201