Local Economic Development Cameroon Creating Prosperity to Secure Long-Term Investments

Photo: GIZ

Problem: Unmet expectations of economic and

social upliftment now lead to confrontation

AES-SONEL Songloulou Hydroelectric Power Plant, constructed in 1981, is located between the Massok Songloulou and Pouma districts with rural populations of about 11,000 and 16,000 people respectively. Since its construction, the neighbouring communities have been expecting social and economic benefits from the project, which have never materialised. Despite punc-tual social actions by AES-SONEL, persistent underdevelopment and increasing economic disparities as opposed to AES-SONEL employees lead to rising frustration in the local neighbouring communities, expressing themselves in blockages of the access road to the power plant or refusal to pay electricity bills.

The local communities hold AES-SONEL responsible for their underdevelopment, as the company is the only meaningful job provider in an area where other income generating activities are very poorly developed and the capacity of the local administra-tion is weak. The few economic activities practiced in this hilly and poorly accessible area rely on locally produced farm crops.

The lack of support from the local administration, absence of technical know-how and new technologies or appropriate materi-als as well as underdeveloped markets and infrastructure reduce the alternatives of these local communities to engage in income generating activities on which important substantial socio-economic benefits reside. Moreover, there are no well-structured organizations which could liaise with local administration and/or AES-SONEL to discuss development issues for the region.

Our partners

AES Corporation owns and operates a diverse and growing portfolio of power generation, transmission and distribution businesses. AES-SONEL is the Cameroonian subsidiary with 44% of the shares owned by the State. Since July 2001, AES-SONEL is the sole power company energizing Cameroon. AES-SONEL has made considerable efforts to integrate itself into the economic and social tissue of the society, contribute to the dynamism and development of communities, protect its environment as well as participate in relevant scenes of social interaction.

Contribution by AES-SONEL

Provision of all respective logistics (vehicle, driver, office space with basic office equipment, organisation of workshops & meetings and additional arrangements for all participants)

Feeding and lodging of Project Manager (PM), PMs driver and Consultants

Implementation of two micro projects

Contribution by GIZ

Provision of a project manager for coordination and liaison

Technical advice for partnership management and Monitoring & Evaluation (M&E)

Consultants for studies, capacity building, technical advice on local community communication

In cooperation with

AES-SONEL Madelka McCallaE madelka.mccalla@AES.com

Contact

Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbHGisa Marggraffgisa.marggraff@giz.de

Strategy and activities

The project aims at increasing the capacities of public partners and community organizations on the one hand and at imple-menting at least two concrete micro projects as good practice examples on the other hand. Those two distinct lines of action will be preceded by a detailed socio-economic baseline analysis to identify areas of intervention in which the partnership could add value, pilot site(s) as well as possible technical partners (community organizations) for implementation. All these efforts will be embedded in a local communication strategy that aims at highlighting existing AES-SONELs efforts in the area as well as AES-SONEL-GIZ partnership.

In terms of capacity development, local community organizations will be trained to identify, plan, implement and monitor com-munity development measures, as well as to develop community-owned micro projects. Participatory mechanisms, including the local administration, will be put in place in both districts and efforts will be made to integrate them into the existing public procedures. Once this groundwork has been concluded, at least two identified micro projects will be implemented in order to enable the communities and their organized economic groups to generate income through the appropriation of new technologies and further develop their entrepreneurial spirit and commercial skills. Designed in a learning-by-doing approach, it will put the devised participation and cooperation mechanisms to a test and at the same time bring immediate benefits to those involved. Lessons learnt will be discussed in the steering and monitoring structures and corrective actions will be taken in a timely manner and in accordance to the given circumstances.

The results of this partnership will be communicated through the media. Public Forums will be organised with stakeholders, a documentary on project evolution and a project manual will be produced consolidating results, best practices and lessons learnt.

Relevance for the partners

The power plant is of strategic importance to AES-SONEL. It is the largest energy producer in its Southern Interconnected Network (SIN) and all other AES-SONEL plants depend on it for frequency regulation. It is therefore essential for the plant to function reli-ably and efficiently to ensure optimum production. Added to this, it is of great importance for the plant to work in an environmen-tally and socially friendly atmosphere and keep good relations with the local communities in a bid to give a sense of oneness and ensure the wellbeing of AES-SONEL people. Furthermore, with increasing tensions, the danger intensifies such that more mem-bers of the local communities begin to refuse to pay electricity bills, impinging on the plants commercial position. AES-SONEL has realized that a sustainable partnership with a focus on income generating activities will not only make the local communities more independent but also improve their living conditions.

Expected Outcomes

It is expected to achieve tangible economic and social results. Main commercial product volumes and turnover will measurably increase benefits for the locally organised commercial groups. The type of products, increase in production and improvement in sales will depend on the pilot projects, yet to be defined. Most importantly, the number of beneficiaries with a positive apprecia-tion of AES-SONELs contribution in promoting local develop-ment in the two districts will increase by a significant number (still to be defined) at the end of GIZ-AES partnership (survey).

Published by Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH Competence Center Cooperation with the Private Sector, Africa Department Registered offices Bonn and Eschborn Dag-Hammarskjld-Weg 1-5 65760 Eschborn, Germany T +49 61 96 79-2171 F +49 61 96 79-7182 dpp-africa@giz.de www.giz.de

As at August 2012

GIZ is responsible for the content of this publication.

Implemented by On behalf of Federal Ministry for Economic Cooperation and Development (BMZ)

Adresses of the BMZ Bonn BMZ Berlin BMZ offices Dahlmannstrae 4 Stresemannstrae 94 53113 Bonn Germany 10963 Berlin Germany Tel. + 49 (0) 228 99 535 - 0 Tel. + 49 (0) 30 18 535 - 0 Fax + 49 (0) 228 99 535 - 3500 Fax + 49 (0) 30 18 535 - 2501

poststelle@bmz.bund.de www.bmz.de

Objective: Enhance economic inclusion and better social climate in the communities surrounding the AES-SONELs Songloulou Hydro Electric Plant.

Partner: AES-SONEL

Duration: 2011 2013

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