REG - Savannah Energy Plc - MoA signed for Hydroelectric Project

Savannah EnergyAnnouncement

20/04/2023 16:30

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RNS Number : 9616W  Savannah Energy Plc  20 April 2023

 20 April 2023

Savannah Energy PLC

("Savannah" or "the Company")

Memorandum of Agreement signed with the Government of Cameroon

 for the 75 MW Bini a Warak Hydroelectric Project

 

Savannah Energy PLC, the British independent energy company focused around the
delivery of Projects that Matter is pleased to announce the signing of a
Memorandum of Agreement ("MOA") by Savannah Energy RCM Limited, a wholly owned
subsidiary of Savannah, with the Government of the Republic of Cameroon (the
"Government") for the development of the Bini a Warak Hydroelectric Project
(the "Bini Project") located in the northern Adamawa Region of Cameroon. A
signing ceremony was held today in Yaounde, attended by His Excellency Gaston
Eloundou Essomba, Minister of Water and Energy for the Republic of Cameroon,
His Excellency Dr Christian Dennys-McClure, British High Commissioner to the
Republic of Cameroon and Andrew Knott, Chief Executive Officer of Savannah.

The 75 megawatts ("MW") Bini Project is expected to provide clean, stable and
affordable power to Cameroon's northern region. This is anticipated to support
both existing local electricity demand and enable a number of energy-intensive
industrial projects, principally in the cement and metallurgy industries,
within the region. The Bini Project is expected to increase current on-grid
electricity generation capacity in northern Cameroon by over 50%. There is
also the potential for power to be dispatched into Cameroon's southern
electricity grid, upon completion of the interconnection, financed by the
World Bank, of the northern and southern electricity networks currently
planned by the Government for 2026.

The Bini Project involves the construction of a dam on the Bini River,
together with an 82km(2) reservoir and associated tunnels, powerhouses,
substations and a 225 Kilovolt transmission line connecting the Bini Project
to Cameroon's northern electricity grid. It is intended to be developed on an
independent power project basis with project sanction expected in 2024 and
first power targeted in the 2027 to 2028 window.

Under the terms of the MOA, Savannah plans to supplement existing feasibility
studies and work with power industry authorities and development finance
institutions to finalise the development, financing and resumption of
construction of the Bini Project.

Savannah expects to fund the Bini Project from a combination of its own
internally generated cashflows and project-specific debt.

His Excellency, Gaston Eloundou Essomba, the Minister of Water and Energy for
the Republic of Cameroon, said:

"The Government is delighted to partner with Savannah Energy in order to
deliver clean and affordable electricity to support our industrialisation
plans for northern Cameroon. The Bini Project will address the current
electricity shortages caused by the hydrology deficit of the Ladgo Dam and
reduce the consequent reliance on expensive thermal generated power in the
region.

Our partnership with Savannah is in line with our long-term "Vision 2035"
Master Plan for increasing the electrification in the country and the National
Strategy for Development 2020-2030. The decision to invest in the Bini Project
is a clear indication of the confidence Savannah has in our country's
potential and our legal frameworks for investment.  As a government, we will
provide all the support needed to enable Savannah to deliver first power from
this exciting project in the 2027 to 2028 window."

His Excellency, Dr Christian Dennys-McClure, British High Commissioner to the
Republic of Cameroon, said:

"I am delighted that a British company, Savannah Energy, is making such a
substantial investment in renewable energy in Cameroon. Cameroon has plentiful
hydropower resources which, through investments like this, can be harnessed to
develop the economy and improve the lives of millions of Cameroonians. This is
a further example of the United Kingdom's commitment to Cameroon."

Andrew Knott, CEO of Savannah Energy, said:

"I am delighted to announce the signing of the Bini a Warak MOA. The Bini
Project is expected to provide clean, stable and affordable power to northern
Cameroon that will support both households and industrial projects in the
region. It is exactly the sort of high developmental economic impact project
that our renewable power division is seeking to deliver. I would like to thank
the Government of Cameroon and, in particular, His Excellency Gaston Eloundou
Essomba Minister of Water and Energy for the strong support we have received
in relation to Savannah taking over the development of the Bini Project. We
look forward to working with the Government of Cameroon and our intended
developmental finance partners as we move this project through the development
and construction phases towards the intended first power in 2027 to 2028.

As a company, Savannah is seeking to continue to expand in Cameroon and we
will continue to review other potential investment opportunities in the energy
and sector. We expect the Bini Project will make a key contribution towards
the attainment of Savannah Group's targeted 1GW of renewable energy projects
in motion by the end of 2023."

 

For further information, please refer to the Company's website
www.savannah-energy.com or contact:

Savannah Energy
          +44 (0) 20 3817 9844

Andrew Knott, CEO

Nick Beattie, CFO

Sally Marshak, Head of IR & Communications

 

Strand Hanson (Nominated Adviser)               +44 (0) 20 7409
3494

James Spinney

Ritchie Balmer

Rob Patrick

 

finnCap Ltd (Joint Broker)
            +44 (0) 20 7220 0500

Christopher Raggett

Tim Redfern

 

Panmure Gordon (UK) Ltd (Joint Broker)        +44 (0) 20 7886 2500

John Prior

Hugo Rich

James Sinclair-Ford

 

Camarco
           +44 (0) 20 3757 4983

Billy Clegg

Owen Roberts

Violet Wilson

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

About Savannah Energy:

Savannah Energy PLC is an AIM quoted British independent energy company
focused around the delivery of Projects that Matter, active in Cameroon, Niger
and Nigeria.

Further information on Savannah Energy PLC can be found on the Company's
website: www.savannah-energy.com.

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