PRESENTATION OF CAMEROON

INVESTMENTS FRAMEWORK
The law that governs investments in Cameroon is the 1990 investment code. Its incentives are identical for foreign and domestic investors and provide 14 basic guarantees to investors, including: property ownership, ability to repatriate capital and income, prior compensation in case of expropriation, freedom of movement within Cameroon and free egress for personnel. In addition to these general benefits, firms may qualify for one of the five special investment formulae that offer more advantages. The five formulae are: the basic regime; the small and medium-size enterprise regime; the strategic enterprise regime; the reinvestment regime; and the free zone regime which was extended to the entire territory of Cameroon since 2002. The IFZ offers a comprehensive package of incentives (a ten-year tax holiday and 15% corporate tax year beginning the 11th year) for enterprises which export at least 80% of their output.

The Government of Cameroon is a Party to the UNFCCC since October 19, 1994 and acceded to the Kyoto Protocol on July 27, 2002.

ENERGY SECTOR
The Cameroonian energy sector was reformed by the Law n 98/ 022 of December 24, 1998 liberalizing the electricity sector and the creation of two agencies, the Electricity sector regulation Agency (ARSEL) and the Rural Electrification Agency (AER). Since 2001, AES, an American company, owns 56% of the capital of the former SONEL under a 20-year concession contract. The Decree n2000/464/PM of June 30, 2000 secures the exclusive (monopolistic) nature of the transmission and distribution activities, and also of electricity sales to all final consumers. However, this monopoly is scheduled to last only 5 years in the case of medium and high voltage consumers leaving a space for Independent Power Production in the AES-SONEL areas. But in rural zone, the competition is opened and no monopoly exists.

workshop was formally co-hosted by the World Bank and the Ministry of Environment and opened by the Representative of His Excellency, Mr. Pierre Hl, the Minister of Environment. The workshops were attended by 145 participants from all economic sectors: Government, Education, consultants, NGO as well as the private and financial sectors. Strong interest was manifested by private waste management operators, wood industries as well as some local banks, including Afriland First Bank, Socit Nationale dInvestissement, FEICOM, Citibank, and Amity Bank. The institutional assistance yields the creation of the DNA and the set up of a website for CMD promotion in Cameroon and project portfolio preparation.

All the projects developed have electricity generation dimension with benefit for local communities as required by the CF-SEA programme. The development of projects related to forestation and reforestation and composting was postponed. Ten PINs were completed and submitted to the CDCF for approval and upfront finance for PDD writing. The projects portfolio is presented further. More information on all presentations delivered under training workshops and projects portfolio, the official documents related to CDM are posted on the website www.cdmcameroon.org

The creation of the DNA is one of the main outputs of the CF-SEA programme in Cameroon. The CDM National Committee (CN-MDP) is mandated to establish the regulations for the implementation of CDM projects in Cameroon and to promote CDM activities in the country through capacities building, awareness seminar, support to projects promoters, international forums, and maintenance of the web site. Its main role is the evaluation and approval of CDM projects. The head of the CN-MDP is the Director of Sustainable development and Environmental planning. The secretary of the CN-MDP is committed to the Head of the Climate Change Unit.

PIN registration at the DNA secretary PIN rejected Submit again First stage Evaluation based on PIN. Answer delay: 2 weeks maxi

PIN accepted Delivrance of letter of non objection PDD rejected Submit again Second stage Evaluation based on PDD. Answer dealy: 4 weeks maxi

GEOGRAPHY
Cameroon is located on the Central West African Coast, bordering Nigeria, Chad, and the Central African Republic. It is divided into tropical forests in the south, the drier savanna in the north-central region and mountains along the western border. It covers an area of 475,440 km2. Natural resources include petroleum, bauxite, iron ore, timber and hydropower. Around 16.4 million people inhabit Cameroon. Official languages are French and English.

Delivrance of letter of approval by the DNA

DEVELOPMENT POLICIES
The adoption of the Poverty Reduction Strategy Paper (PRSP) in 2003 by the government of Cameroon is a milestone in the process of reforms carried out by the Government of Cameroon since October 2000. The PRSP ensures substantial sustainable and equitable growth and significantly reducing poverty contain in the PRSP is the commonly shared long and medium-term development challenge. Cameroon is gearing up to reach the completion point of the Heavily Indebted Poor Countries (HIPC) initiative. Under the HIPC, the International Monetary Fund (IMF) and the World Bank Group's International Development Association (IDA) agreed to support a comprehensive debt r e du c t i on pa c k a ge for Ca m e r oon. Tot a l de bt relief from all of Cameroon's creditors is worth around US$2 billion in nominal terms.

Addresses and Contacts

Ministry of Environment and Protection of Nature Immeuble ministriel no2, 5 tage, porte 533 Boulevard du 20 mai, Yaound Fax: (237) 223-3423
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Sustainable development criteria

SOCIAL
Social equity and poverty reduction Consistency with policies and national legislations for sustainable development Well-being of the local community Social integrity of the local community 8%. The liberalization of the electricity sector is an opportunity for investors; and CDM could bring a good value added.

MACROECONOMIC
The population of Cameroon was estimated to 16.4 millions in 2004 claiming a population growth of 2.1% since 1984. Cameroon has a rich and diversified commodity-based economy. Agriculture was the sole engine of growth and foreign-exchange earnings until the late 1970s when oil became the primary engine of growth. The GDP was US$ 14.7 billion in 2004 with a GDP per capita annual growth rate forecasted at 5.3% from 2004 to 2008. Food and export crops, livestock, fishing and forestry are the mainstay of the economy, accounting for about 29% of GDP, employing some 50% of the active population, and generating more than half of total export earnings. The petroleum and manufacturing sectors represent 20% of GDP. Of this the oil sector accounts for less than 5% of GDP but contributes 35% of government revenue and export receipts. The secondary sector contributes 31% of GDP and employs 15% of the population. Cameroon is the most important market in the Communaut conomique et montaire de l'Afrique centrale (CEMAC), accounting for nearly half of the GDP.

CDM IN CAMEROON
The starting point of CDM activities in Cameroon is the World Banks Carbon Finance for Sustainable Energy Services in Africa (CF-SEA) programme. Financed by the World Banks Community Development Carbon Fund and implemented under the supervision of UNEP-DTIE and Risoe Centre, the CF-SEA programme addresses CDM institutional and technical capacity building issues in Africa while promoting clean energy technologies. The programme assists a number of project developers to identify, prepare and take to market specific carbon projects, and strengthen the capacity of local carbon experts, co-financiers and governmental authorities to engage in CDM activities. Econoler International, a Canadian private firm, and CETEF, a Cameroonian consulting firm, were hired to carry out the program in Cameroon. Four workshops were organised addressing both institutional and technical capacity building. The first CF-SEA workshop and training seminar took place in Yaound, Cameroon on July 21st 22nd July 2005. The

National Committee for CDM

The DNA is hosted by the Ministry of Environment and Nature Protection. It is an inter-ministerial and multisectoral committee. This committee was created by ministerial decision no 0003/MINEF/CAB of January 16, 2006.

ENVIRONMENTAL
GHG reduction Preservation of local and global environment and natural resources Safety and local community health

ECONOMIC AND TECHNOLOGY

Local economic viability Economic viability of the country

Phone: (237) 222-8738 www.cdmcameroon.org

Technology transfer

CDM Project approval procedure

The project approval process is a two-steps procedure: Project Idea Note and Project Design Document. A letter of non objection or a letter of approval is delivered to the proponent when the project successfully meets the sustainable development criteria. The entire project approval process is held out in 6 weeks.

ENVIRONMENT
Environment protection is among the pillars of the development strategy of the Republic of Cameroon. The Ministry of Environment and Nature Protection is the environmental authority in charge of implementing the national and international environment policies. The legal framework of the environment policy in Cameroon is established by the Law n 96-12 of August 5, 1996 related to Environment management. The law requires environment impact assessment, air quality safeguards, local ecosystem and natural resources preservation.

Projects developers were also supported to prepare their projects documents. Econoler International and CETEF brought their expertise to bear the projects to reach maturity. A portfolio of 17 projects was initially identified covering three main sectors: waste, hydropower, and biomass.

CDM DEVELOPMENT POTENTIAL

The greatest greenhouse gas emission reduction potential sectors are renewable energies, especially hydro, solar, biomass; methane recovery at landfills site and forestry. Electricity related projects show surely the most interesting potential. The electricity coverage is 15% for rural areas and 50% for urban zones with an annual electricity demand growth of

HYDROELECTRICITY
Hydropower represents 96% of the electricity generated in Cameroon. The hydro potential is estimated to 115 TWh/year and only 3% of this potential is used. Cameroon has the second greatest hydropower generation potential in Africa behind Democratic Republic of Congo. Precipitation varies from 650 mm to 6000 mm per year respectively in the Extreme North and the Western and littoral provinces.

Eight of the ten provinces of Cameroon have a large small and micro hydro power potential evaluated to 127 MW for 1.15 TWh producible per year.

enterprises such as timbers exporters and sawmills. Some of the sawmills are grouped under GICFAUCA, an economic interest group. The Forestry Code (Law no 94/01 of January 20, 1994) ensures the sustainable exploitation of the forest. CDM is considered as an incentive to maintain the sustainability of the forestry sector and prevent desertification.

SOLAR ENERGY
Solar radiation is profuse in the entire territory of Cameroon. The South region with high moisture has an average solar radiation of 4.9 kWh/m2/day. The isolation is more regular in the Northern where on average each m2 receives daily 5.8 kWh from the sun. The nationwide solar energy potential is estimated to 2300 TWh, that is, 20 times the hydro potential.

The implementation of the projects under development will lead to about 60 MW additional electricity capacities in Cameroon and emissions reductions are estimated to about 2 million tonnes CO2 equivalent up to a 7-year period.

FORESTRY RESIDUE
Project Developer Five projects are promoted by GIC-FAUCA using sawdust in forestry area to generate electricity and heat. GIC-FAUCA is an economic interest group operating in many sectors, notably in the forestry industry, renewable energies and agriculture. The group comprises owners of sawmills situated in the forest zones of the East and Centre Provinces of Cameroon. GIC-FAUCA is developing five small-scale projects at five sawmills sites. The projects will use the sawdust available on the sawmills sites to generate electricity and heat that will be sold to the sawmills located in remote area. The biomass feedstock will replace fossil fuel based electricity and heat. The project will also supply electricity to local communities. The projects will be build own operate projects in which a Canadian partner Franbec Cda Lte will finance, set up the power plant and sell the electricity and heat produced to the sawmill and to the populations. Project Promoter Project Name Short Description GIC-FAUCA Franbec Cda Lte GIC-FAUCA GIC-FAUCA Electricity Production from sawdust The sawmills are located at Libongo, Nsimalen, Ngoro, Pela Nsem and Lomi in Central and eastern provinces. The power plant will have an electric output of 5 MW when providing about 7 MW of heat for each site. The sawdust will be converted to synthesis gas for electricity and heat production. Forestry Gasification using biomass 49,700 tonnes CO2e per year for each project Antoine Zinga Ngouma PO Box 3583, Yaound Messa, Cameroon (237) 742-7023 zinga87@yahoo.fr

Project Developer Project Name Short Description

AER Rural community of Ngoyla Hydropower in forestry zone of Cameroon The project consists in building micro and small hydro plants for electricity supply in rural area in Cameroon. The total hydro capacity identified at in this portfolio is 27 MW: - Ngoyla: 500 kW - Bai: 4 MW - Ombe: 7.5 MW - Idenau: 3 MW - Mezan: 2 MW - Mentchum: 10 MW

Ministry of Environment and Protection of Nature Direction des Politiques Environnementales Designated National Authority for CDM

LANDFILL GAS
The two landfill gas projects are developed by HYSACAM, the most important waste operator in Cameroon. The projects target the methane recovery and destruction through flaring and electricity generation using a generator set at the landfill sites of Douala and Yaound the two biggest cities in Cameron. The productive use of the collected landfill gas will be an environmental sound manner to handle municipal solid waste management in Yaound and Douala while improving HYSACAM incomes and local and global environment as well. The project will also contribute to compensate the electricity deficit faced by the utility. The main figures of these projects are summarized as follows.
Project Developer Projects Names HYSACAM - Yaound landfill gas to electricity - Douala landfill gas to electricity Short Description The landfills are located at Nkolfoulou (Yaound) and Ngomb (Douala). The power plant capacities are respectively 3 MW for Yaound and 4 MW for Douala. Municipal solid waste Methane capture for electricity generation 287,000 tonnes CO2e for Yaound landfill. 280,000 tonnes CO2e for Douala landfill. Michel Ngapanoun, General Manager P.O. Box 1420 Douala, Cameroon Tel : (237) 337-4414 Fax : (237) 337-4773 hysacamdla@camnet.cm

METHANE RECOVERY
Landfills are the major source of methane release into the atmosphere in Cameroon. The Legislation does not mandate methane capture. Since 1969, HYSACAM is the main operator in municipal solid waste handling and disposal in main municipalities.

Cameroon Clean Development Mechanism

USING CDM IN CAMEROON AS INVESTMENT OPPORTUNITIES FOR SUSTAINABLE DEVELOPMENT

Economy Sector Technology GHG Emission Reduction Contact person

Economy Sector Technology GHG Emission Reduction

Rural electrification Hydro power (run-of-river) The total CER volume of these projects is estimated to 150,000 tonnes CO2e per year. Justin Ntsama, project manager Tel: (237) 977-6059 ntsama_justin@yahoo.fr

BIOMASS
Cameroon has important biomass resources from the forestry industry and agro-industries. Sawdust and others waste from the forestry industry are spread in nature while the energy required to power is generated from fossil fuel. The agro-industries comprise oil-mill, breweries, sugar plant. The plants are mainly located in rural zone without access to the grid. The abundant biomass waste could use as feedstock for electricity generation.

The amount of garbage dumped is estimated to 1000 and 800 metric tonnes per day respectively for Douala and Yaound the two most important cities in Cameroon. These quantities represent about 50% of the waste produced in these towns.

Contact person

MICRO HYDRO
The hydro projects are developed by the rural municipality of Ngoyla in the eastern forestry area and the Rural Electrification Agency (AER). The micro and small hydro projects are bundled. An overview of the projects is given below.

AGRO-INDUSTRIAL BIOMASS
The agro-industrial sector has a large potential for CDM project. The technology suitable to this sector is cogeneration plant using solid waste from oil mills, sugar mills.

FORESTRY SECTOR
Cameroon has the second forestry potential in Africa. 70% of the land is forested and 40% of the national territory is made of exploitable forestry. Cameroon is one of the greatest producers and exporters of process wood and timber. The 17 millions hectares productive forest generates 16% of the Cameroon export incomes and contributes to 8.3% of the country budget. Forestry industry comprises more than 200 operational

The ten projects at the PIN stage can be grouped in three categories: Landfill gas projects Biomass based cogeneration projects Micro-Hydro projects. Five technologies are used for the projects in the pipeline: landfill gas capture for electricity generation, small hydro power, cogeneration plant using solid waste boiler and steam turbine, biomass gasification for electricity generation (thermocyclage technology), waste heat recovery boiler.

Economy Sector Technology GHG Emission Reduction (7 years period) Contact person

THE FIRST CDM PROGRAMME IN CAMEROON

Financed by the World Banks Community Development Carbon Fund, the programme Using Carbon Finance to promote Sustainable Energy Services in Africa - CF-SEA addressed CDM institutional and technical capacity building issues in Cameroon while promoting clean energy technologies. The programme has assisted a number of project developers to identify, prepare and take to market specific carbon projects, and strengthen the capacity of local carbon experts, co-financiers and governmental authorities to engage in CDM activities.
CETEF Inc.

PARTNERS
WORLD BANK

W W W. C D M C A M E R O O N . O R G

PROJECT PORTFOLIO