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

During the early design stage of the Project, Meridiam searched the optimum balance between maximizing energy production and minimizing environmental and social impacts. This resulted in the size of the reservoir being divided by nearly 2 compared to initial plans. The ESIA process, managed by Meridiam and its E&S advisors (EDF, Artelia and Biotope), has confirmed a low impact on fauna and flora and that no resettlement of local population would be required.
In 2019, the Project received its environment and social certificate from the Gabonese authorities. The Project’s management plans include concrete social and environment actions to foster capacity building and benefit local communities:
• A biodiversity action plan comprising an offset mechanism in accordance with IFC Performance Standards (PS) resulting in a net gain: the project is one of the first in Africa to do so. Net gains are additional conservation outcomes that can be achieved with biodiversity actions and measures. Concretely, the compensation mechanism consists in converting up to 2,000 ha (c. 10x the Project footprint) of forest concession into a protected area. The decree for creation of the 2000 ha biodiversity sanctuary area has been approved by the
Council of Ministers in November 2022 and signed by the president in February 2023. This is a major milestone for the project and for
Gabon, as it is one of the first decrees of its kind and it paves the way for future investments in hydropower in the country.
A fund has been set up to support local initiatives and assist local 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.
• Dispensary staff and patients will be provided with new and modern equipment to ensure effective treatment of populations and workers on the site. The Project Company is also supporting the departmental hospital of Kango with the procurement of new equipment, in particular for the analysis laboratory and the delivery room.
• 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.

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