Cameroon has awarded Ghana’s Sunon Asogli Power and China Energy Engineering Corporation a contract to build a $312mn gas-fired power plant in the southwest city of Limbe, ending more than a decade of stalled negotiations with potential investors.

The 350-megawatt combined-cycle plant, due for completion in 2029, is designed to ease crippling electricity shortages in Cameroon’s southwest, coastal and western regions while advancing the government’s target of reaching 5,000 MW of installed capacity by 2030.

According to Joy News, the project is structured as a public-private partnership worth CFA 176 billion ($312mn), with the government contributing CFA 26 billion (15%) and the two companies financing the remaining 85%.

Cameroon currently generates around 2,000 MW, leaving large swathes of the country facing chronic blackouts that have stifled industrial growth and slowed efforts to extend electricity access to rural areas. By harnessing natural gas, officials say the project will help diversify the country’s hydropower-heavy energy mix and improve resilience to climate shocks.

“The Limbe project is a significant step toward regional integration and shared prosperity—an outcome that is deeply personal to me and vital for the future development of both nations,” said Ghanaian lawyer Penelope Mawulolo Jones-Mensah, lead consultant for the venture. 

“I would like to express my profound appreciation to the Government of Cameroon for its confidence in this joint venture. I commend Sunon Asogli Power for expanding its footprint into Cameroon, and I am honoured to contribute to a project that fosters meaningful cross-border collaboration and long-term impact in Africa’s energy sector,” Jones-Mensah added.

The contract marks a rare collaboration between an African independent power producer and a Chinese state-owned engineering giant, underscoring the growing role of both African and Chinese firms in shaping the continent’s energy landscape.

Environmental impact assessments, contract finalisation and financial close are expected to follow in the coming months. Once operational, the Limbe power station will provide a more reliable energy supply, bolster industrial competitiveness, and stimulate economic growth along Cameroon’s southwest corridor.