Tax & Legal
A consortium formed by the French companies RTE and Nodalis and the U.S. firm PwC will finalize the accounting separation of the assets of the Cameroonian electricity distribution network managed by Eneo and their transfer to the new national electricity distribution company (Sonatrel) at the latest in December 2017. The objective is to modernize the distribution network, the weak link in the electricity sector.
The consortium formed by the French company RTE International, a 100% owned subsidiary of the Manager of the French electricity distribution network, and Nodalis, the consulting firm in infrastructure development, and by the American firm PricewaterhouseCoopers (PwC), will accompany the launching of the new national electricity distribution company (Sonatrel) in Cameroon.
In June, after winning the international tender launched by the State of Cameroon and the World Bank, its experts began their working sessions in early July.
"This project is divided into two main stages, summarizes the press release by RTE published Monday, October 3rd, where it believes that the work will last for one year. Different technical, accounting, social, pricing, legal and tax issues will be reviewed by the different RTE experts and partners".
Eneo Assets Transfer
Specifically, "their job is to help us in the accounting separation of the assets of the distribution network currently managed by Eneo [Energy of Cameroon] and their transfer to Sonatrel later than December 2017," said Mbemi Nyaknga, Sonatrel CEO.
This involves defining the scope of distribution that will be integrated with Sonatrel after Eneo has detached the distribution division from its organizational chart. Another aspect of their work will be concerned with the assessment of the number of Eneo employees who will join the new structure.
The French company RTE conducted a similar process in 2000, during the detachment of the distribution segment of EDF's activities. Within a decade, its subsidiary, RTE International, has boasted a hundred projects in 30 countries.
Created in October 2015, Sonatrel aims to implement an investment plan of XAF 500 billion in the modernization of the electricity distribution network. Envisaged by Eneo, this plan has made little progress. Meanwhile, the dilapidated distribution plays heavily on the losses experienced by the electricity grid.
Thus, Sonatrel is about to complete negotiations with the World Bank for the mobilization of USD 375 million (EUR 335 billion) needed for the first phase of the rehabilitation of the distribution network. The deal is expected to be closed in late December.
Source: adapted from the article “Cameroun : un trio franco-américain au chevet de la modernisation du réseau électrique”, Jeune Afrique www.jeuneafrique.com