African Energy Legacy Projects
[last updated February 13, 2006 9:42 AM]

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General Information
Partnership website(s)
Expected Timeframe
January 2003 - December 2010
Partners
Governments:
  • Government of South Africa - Eskom (South Africa National Electric Utility)
  • Government of Angola - Angola National Electric Utility (ENE)
  • Government of Democratic Republic of the Congo - Congo National Electric Utility (SNEL)
  • Government of Kenya - Kenya National Electric Utility (Zesco)
  • Government of Malawi - Malawi National Electric Utility (Escom Ltd)
  • Government of Mozambique - Mozambique National Electric Utility (EdM)
  • Government of Namibia - Namibia National Electric Utility (Nam Power)
  • Government of United Republic of Tanzania - Tanzania National Electric Utility (Tanesco)
  • Government of Zambia - Zambia National Electric Utility (Kplc)
Major Groups:
    UN System:
    • The World Bank (United States of America)
    Other intergovernmental organizations:
    • South African Development Community (SADC) (Botswana)
    • New Partnership for Africa's Development (NEPAD) (South Africa)
    • Southern African Power Pool (SAPP) (South Africa)
    • Member States: African Union ()
    • Member States: East and West African Power Pools ()
    Other:
       
      Thematic Focus
      Primary Themes:
      • Sustainable development for Africa
      • Energy for sustainable development
      Secondary Themes:
        Geographic Coverage
        Geographic Scope: Regional
        Country(ies) where the partnership is being implemented:
        Angola, Democratic Republic of the Congo, Kenya, Malawi, Mozambique, Namibia, South Africa, United Republic of Tanzania, Zambia
        National Focal Points
        This partnership has not made any contact with the national focal points for sustainable development in the countries involved
        Goals and Objectives
        Summary of the partnership's goals and objectives
        A primary requirement to assist in the electrification of Africa is to complete the interconnectors between the various countries and their respective utilities, so that Africa has one interconnected transmission grid. The transmission interconnectors are predicated on the basis that, while some countries and/or regions have excess generation capacity, others are experiencing shortages, with serious consequences for their economic and social development. While it is technically possible for each country to develop sufficient energy resources to meet their needs in the medium to longer term, this approach ignores the economic and environmental efficiencies possible through regional co-operation. This is viewed as an important first step, as it allows undersupplied countries, or countries supplied primarily by hydro-electricity, who are subject to fluctuations in supply during drought cycles, to have immediate access to a pool of electricity when required, and to contribute to such a pool when water levels are high. This facilitates uninterrupted power supply throughout Africa.

        The initiative supports the diversification of electricity sources and socio-economic development. Apart from supporting NEPAD and adhering to best environmental practice, detailed design of the project will take into account synergies with existing sustainable development initiatives, such as the Peace Parks initiative, eradication of land mines and improvement of local infrastructure. The partnership aims include improving capacity for regional and sub-continental electricity trading.
        Targets and Progress
        Partnership targets
        To complete the Western Corridor scoping study by December 2002, with full implementation by 2010.
        To construct 200km of 220kV transmission line between Matambo Substation (Tete, Mozambique) and a substation north of Blantyre, Malawi by 2005.
        To construct 370km of 330kV transmission line between Nairobi (Kenya) and Arusha (Tanzania) as well as 670km of 330kV transmission line between Mbeya (Tanzania) and Pensulo (Serenje, Zambia) by 2005.
        To refurbish the Zongo and Sanga hydroelectric facilities in order to restore their generation capacity from 17MWe to 87MWe. To interconnect the two facilities (12km), refurbish the transmission system for power delivery to Kinshasa and repair the access roads.
        Progress against targets
        Progress relating to each of the projects listed above, as at January 2006, is:
        ? Significant progress was made in the Western Corridor Project (WESTCOR), through the signing of the inter-government and inter-utility agreements to co-develop the project. The five participating utilities (BPC, ENE, Eskom, NamPower and SNEL) have each committed USD 100 000 to be used for the funding of the feasibility studies for this project. A shareholders agreement was signed at the end of 2005 such that each participating utility agreed to own 20% of Westcor. The Westcor project includes the development of a 3 500 MW hydro power plant on the Congo River (Inga III - first phase), the development of the Western Corridor (DRC-Angola-Namibia-Botswana-RSA power transmission line), and the associated telecommunications infrastructure. The Westcor accounts were opened in Gaborone, Botswana, including a project office. Westcor is now in the process of appointing the Chief Operations Officer for the Head Office in Botswana.

        ? To construct 200km of 220kV transmission line between Matambo Substation (Tete, Mozambique) and a substation north of Blantyre, Malawi by 2005. In 2004, HCB of Mozambique won a tender for the supply of 200MW (maximum) power to ESCOM Malawi. Preliminary and environmental studies have been completed. ESCOM Malawi is in the process of finalising the power purchase agreement which will support bankability and financing. The final financing decision will be made during 2006.

        ? To construct 370km of 330kV transmission line between Nairobi (Kenya) and Arusha (Tanzania) as well as 670km of 330kV transmission line between Mbeya (Tanzania) and Pensulo (Serenje, Zambia) by 2005. Power generation capability within Kenya has been affected, due to the severe drought conditions experienced, over the last couple of years. Thus it is likely that the Tanzania-Kenya interconnector would be constructed first with the sole aim of supplying power to Kenya. Agreements have been signed between both parties. As of last year, the economic analysis for the Zambia-Tanzania interconnector was still pending. Further, there have been changes in Tanzania that have called for a review of the interconnector studies. Tanzania has discovered gas deposits and would have to compare the cost of power from possible CCGT power stations in Tanzania to the cost of importing hydropower from SAPP via Zambia. Due to the above developments, the Zambia-Tanzania interconnector may take longer than initially planned. .

        ? To refurbish the Zongo and Sanga hydroelectric facilities in order to restore their generation capacity from 17MWe to 87MWe. To interconnect the two facilities (12km), refurbish the transmission system for power delivery to Kinshasa and repair the access roads. ? Studies and site investigations have indicated that this project is not feasible.
        Capacity-Building and Technology Transfer
        Arrangements for Capacity-Building and Technology Transfer
        • Human resources development/training
        • Technology transfer/exchange
        The Partnership/Initiative will specify the use of credible local implementation partners. Local and existing staff will be used on all the projects for the implementation, operation and maintenance, which will build local capacity. Although no formal arrangements for technology transfer have been envisaged, the project is likely to use the best internationally available technology and so will include the introduction of new technologies in the region. Discussions concerning transmission line structures, configurations and supporting telecommunication systems are also likely to result in informal transfers.
        Relationship to International Agreements on Sustainable Development
        How the partnership contributes to the implementation of Agenda 21, the Programme for the Further Implementation of Agenda 21, and the Johannesburg Plan of Implementation
        This partnership/initiative will support the objectives of Agenda 21 as well as relevant goals and objectives of the United Nation Millennium Declaration, in that:
        * Integrated planning is required to optimise energy resources and minimise environmental impacts.
        * Identification and quantification of the environmental and social aspects must be explicitly considered in the scope of work.
        * Ultimately, a western corridor will be required to access the substantial hydropotential in central Africa, which is seen as a possibility for mitigating against projected increases in fossil fuel-fired plant greenhouse gas emissions in southern Africa.

        * It will ensure a stable and cost-competitive electricity supply to existing capacity-short countries, which is a necessary and facilitating factor for economic and social development (specifically health and education).
        * It will reduce energy security risks for all the partners in the respective power pools, by providing access to a larger number/variety of generating resources, which have complementary risk profiles.
        * It will expand participation and experience in a regional electricity market, which could build capacity/ lay foundations for further partnerships/initiatives.
        * It will reduce energy supply risks for strategic facilities in Kinshasa (including hospitals).
        * Successful completion of this relatively small project may provide a suitable demonstration to encourage investor confidence in central Africa, which will in turn be required to rebuild the country when peace agreements have been concluded.
        * Investor confidence will also be required for implementation of Grand Inga, a key link in the vision of a Pan-African electricity grid. Relevant Sections of Agenda 21
        Protection of the atmosphere; Combating deforestation; National mechanisms and international cooperation for capacity-building in developing countries
        Relevant Sections of the Programme for the Further Implementation of Agenda 21
        Integration of economic, social and environmental objectives
        Relevant Sections of the Johannesburg Plan of Implementation
        Protection and managing the natural resource base of economic and social development ; Sustainable development for Africa
        Coordination and Implementation
        Coordination Mechanism of the Partnership
        Progress on the initiative is being tracked by the Coordinating Centre for the Southern African Power Pool and regular updates can be made available.
        The Western Corridor is the subject of an inter-utility MoU that provides for the establishment of a joint venture company for implementation. Current activities are coordinated through a Steering Committee consisting of the Chief Executive Officers of the four utilities involved.
        The implementation and operation of the remaining interconnectors could be funded by the World Bank, the individual utilities or through a special purpose company, in which several stakeholders may choose to participate.
        Implementation Mechanism of the Partnership
        From NEPAD perspective therefore, regionally viable projects are proposed in the following context of developing a pan African Transmission Grid and the hydro resources of the Inga river as follows:
        * Eastern transmission corridor development through the completion of the SAPP interconnection network to Tanzania and Malawi, and further extention of the SAPP grid to eastern Africa trough an HV Tx line from Arusha in Tanzania to Nairobi in Kenya.
        * The above Tx projects will, in the short term, enable the wheeling of power from existing excess capacity markets (RSA, Zambia, Mozambique and DRC), to existing capacity-short markets (Tanzania, Malawi, Kenya).
        * In the medium to long term horizon these lines will enable the delivery of power from future rehabilitated and newly developed hydro resources in the DRC, Zambia and Mozambique to Eastern Africa including Kenya, Sudan, Ethiopia and Arithrea.
        * As a second development phase it is proposed to further develop the enormous and stable hydro power resources of central Africa through the rehabilitation of existing plants like the Inga 1 and 2, which will add about a 1000 MWe, and the development of new greenfield plants like the Inga 3 (1500-3500 MWe). In the medium to long term horison it is proposed to develop the 40 000-50 000 MWe hydro-power potential of the Grand Inga.
        * However major transmission lines will be required to wheel the Inga power to the Southern, eastern and South African markets. It is therefore proposed to reinforce and upgrade the eastern corridor HV Tx line from DRC to Zambia and to develop the DRC-Angola-Namibia-South Africa Tx line (the "Western Corridor").
        * In conjunction with the large scale development of the hydro resources of central and southern Africa, it will be necessary to upgrade the Transmission line from DRC (Inga) to Zambia and to develop the Western transmission corridor from Inga in the DRC through Angola, Namibia, Botswana to South Africa.
        * In terms of the development of a continental grid it is important to create a link between the Southern African Power Pool (SAPP) and the West Africa Power Pool (WAPP). This will require the developing of a DRC-Congo Brazzaville- Gabon-Equatorial Guinea- Cameroon-Nigeria HV Tx line.
        * Another (direct) connection to Eastern Africa market is proposed to be developed by a HV Tx line from the Inga to Uganda.
        * In the medium to long term horison it is proposed to link the Inga to Cairo by an HV Tx line from Nigeria, or Cameroon via Chad, Libya and Egypt.
        * However, with a view to build-up investor confidence in this part of the continent, it is proposed to embark on a smaller size rehabilitation project of an existing 95 MWe hydro plant at Zongo and Sanga site which, in the short term, will provide a reliable power supply to Kinshasa and Brazzaville
        Resources
        Funding Currently Available
        Amount in US$: 0
        Source(s): IGO
        Total investment for the four components outlined above are estimated at US$ 800 million. World Bank has committed to undertaking some aspects of this (Mozambique-Malawi interconnection and the feasibility study for the Tanzania-Zambia interconnection).
        Non-financial resources available
        Type(s):
        Source(s):
        Funding Sought
        Required Amount in US$: not specified
        Source(s) already approached: In the case of the Western Corridor, it is expected that all four utilities would contribute equity and take shareholding in the joint venture company. It is envisaged that the Zongo-Sanga refurbishment could be funded through a joint venture between Eskom Enterprises and Nampower International. Further partners are invited to express their interest.
        Non-financial resources sought
        Requirement(s):
        Source(s) approached and details:
        Additional Information
        Additional Relevant Information
        NEPAD is a comprehensive, integrated development plan that addresses key social, economic and political priorities for the continent. It entails a commitment by African leaders to African people and the international community to place Africa on a path of sustainable growth, accelerating the integration of the continent into the Global economy. It calls on the rest of the world to partner Africa on her own agenda and programme of action.Energy access has been identified as a national priority of the South African Government, as well as a priority area for NEPAD. NEPAD specifically states with regard to the energy sector that żenergy plays a critical role in the development process, first as a domestic necessity but also as a factor of production whose cost directly affects prices of other goods and services, and the competitiveness of enterprises. The energy projects proposed form part of the overall NEPAD implementation strategy. The Southern African Power pool was created in 1995 at a SADC summit, where member governments of SADC signed an Inter-Governmental Memorandum of Understanding for the formation of an electricity pool in the region. A process is underway to strengthen the Western and Eastern African Power pools.

        On a continental level Africa energy resources are distributed as follows: Natural gas and oil mainly in north, west and southern AfricaCoal mainly in southern AfricaHydro power mainly central Africa It is considered that the continent may maximise the benefit of developing its energy resources for power supply, by developing its hydropotential resources thus optimising the export potential of its natural gas resources (in a NLG or GTL form) in return for hard currencies necessary for the development of infrastructure in general, and developing local gas markets where economy of scale makes it viable (e.g. petrochemical and mineral beneficiation industries). With a view to ensure a long term reliability of power supply for all it regions, it is necessary for Africa to develop a continental transmission grid, which will enable the transfer of power generated anywhere in the continent, thus diversifying the power sources for any market in the continent.

        There has been extensive work in assessing the energy needs of the African continent. We have now reached the point where the key energy projects critical for the strategy envisioned by NEPAD have been identified.