Cameroon’s 500 MW Kikot Dam Draws 50-Plus Financiers With Final Cost Still Unsettled

More than 50 financial institutions have expressed interest in financing Cameroon’s planned 500 MW Kikot-Mbebe hydropower project. The strong initial lender interest comes before firm financing commitments and while the project’s final cost remains unresolved, with current estimates that differ by CFA748 billion.

Ahmat Tom, chairman of Kikot-Mbebe Hydro Power Company (KHPC), disclosed the number on September 15, 2026, in Yaoundé during a meeting that presented the project to potential financial partners.

The institutions emerged from a market-sounding exercise conducted to gauge potential lenders’ interest and collect initial feedback before the financing structure is finalized. Their expressions of interest do not yet represent firm financing commitments.

KHPC has not disclosed the full list. However, information obtained from the company identifies several international development institutions and banks among the potential financiers, including the International Finance Corporation (IFC), Proparco, the African Development Bank (AfDB), the Islamic Development Bank (IsDB), Afreximbank, Germany’s state-owned development bank KfW and BNP Paribas. Several Cameroonian banks have also shown interest.

Bilateral Talks to Precede a Lenders’ Conference

The September 15 meeting opens a more targeted phase of discussions between KHPC and potential financial partners. The project company is owned equally by the Cameroonian government and Electricité de France (EDF).

“This meeting opens a new phase in a series of consultations on financing prospects for the Kikot project, which will culminate in a major lenders’ conference planned by the government,” Tom said. “We plan bilateral discussions with each potential lender to address in greater depth any concerns that may arise.”

The next phase will allow interested institutions to examine the project before any financing decisions. At this stage, lenders typically conduct their own due diligence on technical, financial, environmental, contractual and regulatory matters.

The effort to secure lenders comes before KHPC has established the final amount required to develop Kikot. Two different estimates currently exist for the 500 MW project.

The 2027-2029 Economic and Budget Programming Document, published July 6, 2026, by the Budget Directorate, puts the total cost of the “Kikot hydropower development and associated lines” at CFA872 billion. The government classifies the project as a public-private partnership and schedules implementation between 2028 and 2032.

A September 2025 letter from KHPC’s chairman to the Water and Energy Minister after the company’s 14th board meeting in Paris cited a much higher figure of CFA1.62 trillion. The difference between the two estimates stands at CFA748 billion.

Detailed Design Estimate Still Subject to Cost Reductions

A source close to the project said the CFA1.62 trillion figure came from the detailed engineering design assessment. The source suggested that the CFA872 billion figure in the government’s planning document could represent a budget provision, although the basis for that amount remains unclear.

“We do not know what the CFA872 billion figure in the Finance Ministry document corresponds to, but we assume it is the government’s projected provision for the project,” the source said. “What we can confirm is that the CFA1.62 trillion figure comes from the detailed engineering design assessment, which provides gross costs.”

According to the source, further discussions could reduce some cost items, particularly through the tax regime applied to the project and the terms of future loans.

The explanation does not fully reconcile the two estimates. Neither the components included in the CFA1.62 trillion assessment nor the assumptions behind the Finance Ministry’s CFA872 billion figure have been made public.

It is therefore not yet possible to determine how much of the CFA748 billion difference stems from the project’s technical scope, taxes, contingencies, financing conditions or other assumptions.

KHPC has meanwhile made progress on contractor selection. The company has shortlisted companies and consortiums for the three main packages: civil works, electromechanical works, and transmission lines and substations. In its November 2025 notice, KHPC said shortlisted candidates would submit proposals once tender documents were issued. Those bids could provide more precise price benchmarks for the project.

“Not all bidders will propose the same cost for this project,” a source close to the project said, adding that competition could help reduce the final investment cost.

The official timetable leaves several months to complete the financing structure. In November 2025, KHPC said financial close, which would allow the main construction work to start, could occur in the second half of 2027 at the earliest.

Brice R. Mbodiam