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, clean electricity, by increasing the country’s renewable energy mix to 80%, 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 save more than 150,000 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

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

*Assuming Kinguélé energy production is replacing energy produced entirely by thermal production facilities