By Cristina Roca 
 

Electricite de France SA (EDF.FR) said Thursday that it signed an agreement to build a hydropower plant in Cameroon at an expected cost of 1.2 billion euros ($1.37 billion).

The French electricity company said it signed an agreement with the International Finance Corporation and the government of Cameroon to design and build a 420-megawatt hydropower plant on the Sanaga river near the Nachtigal Falls. EDF will also build a 50-kilometer power-transmission line.

A quarter of the cost will be funded by shareholder equity while the rest will come from lenders, EDF said.

The company said construction will begin by the end of the year, and the dam should be commissioned in 2023. The project will generate enough power to cover 30% of Cameroon's electricity demand, EDF said.

Nachtigal Hydro Power Company, which is owned by EDF, will own 40% of the project, while the IFC and the Republic of Cameroon will hold another 30% each, the company said.

Write to Cristina Roca at cristina.roca@dowjones.com; @_cristinaroca

(END) Dow Jones Newswires

November 08, 2018 10:56 ET (15:56 GMT)