PIDA Rolling-Out the PAP

African Development Bank Group

AfDB

Interconnecting, integrating andtransforming a continent

Programme for InfrastructureDevelopment in Africa

Africa’s Time for ACTION

PIDARolling-Out the PAP

17th UPDEA Congress, Tunisia

Dr. J. MoulotAfDB, dept. ONRI

Overview of Presentation •PI

DA Priority Action Plan

1

•Projects synopsis

2

•Implementation Issues

32

3

PAP-Energy Investment Cost: $40.3 bnInga Hydro Phase 1 6,000ECCAS Central Central African Interconnection 10,500ECCAS

Great Millennium Renaissance Dam 8,000COMESA/ IGAD

Eastern

Batoka Dam 2,800COMESA EAC

Ruzizi III Dam 450COMESA EAC

Rusumo Falls Dam 360COMESA EAC

Uganda-Kenya Petroleum Products Pipeline 150COMESA EAC

North Africa Transmission 1,200AMU Northern

Nigeria -Algeria Pipeline N/A UMA ECOWAS Northern, Western

North South Power Transmission Corridor 6,000COMESA EAC SADC IGAD

Southern Nphamda -Nkuwa Dam 2,400SADC

Lesotho HWP Phase II -hydropower component 800SADC

Sambagalou Dam 300ECOWAS

Western West African Power Transmission Corridor 1,200ECOWAS

Kaleta Dam II 179ECOWAS

PAP vs. Regions and Project Types

4

Central41%

Eastern29%

Northern3%

Southern23%

Western4%

Cost in Million USDTotal:40.3 billion

Generation Transmission O&G Pipeline

Series1 21289 18900 150

2,500

7,500

12,500

17,500

22,500

TYPE PROJECTS

Mill

ion

USD

The energy infrastructure program focuses on major hydroelectric projects and interconnects the power pools to meet the forecast increase in demand. One regional petroleum products pipeline is also included.

PID

A Pr

iorit

y Ac

tion

Plan

202

0

Energy15 itemsUSD 40 bn

5

Overview of Presentation •PI

DA Priority Action Plan

1

•Projects synopsis

2

•Implementation Issues

36

GREAT MILLENNIUM RENAISSANCE DAM

Cost (Million USD) 8,000

REC Involved COMESA/IGAD

Beneficiary countries

Ethiopia, Nile Basin Countries

Technical Organizations

Ethiopian Electric Company / Nile Basin, EAPP

Objectives Develop a 5,250 MW plant

Expected Results increase capacity of EEPCO six-fold (750 MW at present) Supply Ethiopian and export EAPP market

Project Challenges

Capacity of EEPCO to O&M commercially and financially plant Mobilization of financing: Some US$ 3 billion are still needed Issuance of local bonds a challenge Coordinate Generation with development of complementary

transmission and distribution Consensus building with neighboring countries (Sudan, Egypt)

7

Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

NORTH SOUTH POWER TRANSMISSION CORRIDOR


REC Involved COMESA/EAC/SADC/IGAD


Kenya, Ethiopia, Tanzania, Malawi, Mozambique, Zambia, Zimbabwe, South Africa


SAPP

Objectives Transport energy of Great Millennium Renaissance Dam

Expected Results 8,000 km line from Egypt through Sudan, South Sudan, Ethiopia ,

Kenya, Malawi, Mozambique, Zambia, Zimbabwe to South Africa

Project Challenges

Cooperation/Agreements among participating countries No regional entity for Overall project development, operation and

Maintenance Establishment of Cross Regional SPV Inter-regional interconnection between EAPP and SAPP

8


NPHAMDA – NKUWA HP-DAM


REC Involved SADC


Mozambique, Zambezi basin


Mphanda Nkuwa Hydro-Electric Company, SAPP

Objectives Export on the SAPP market

Expected Results Hydroelectric power plant with a capacity of 1,500 MW

Project Challenges

Completion of financing plan Project structure needs to minimize risk profile and attract

commercial financing Negotiation of off-take agreements ( South-Africa: Local or Hard

currency?; Capacity of Energy off-take TOP contract?) High Currency Risks and hydrology risks

9


LESOTHO HWP PHASE II - HYDROPOWER COMPONENT


REC Involved SADC


Lesotho, South Africa, Orange-Senqu River Basin


Lesotho Highlands Water Commission, SAPP

ObjectivesIWRM to provide energy to Lesotho and water transfer to SA and ensures the water security of South Africa’s Gauteng province

Expected Results

Lesotho Highlands Water Project Phase II consists of two separate components – a) the construction of Polihali Dam and transfer to tunnel to Katse dam, and b) the Kobong pump storage scheme hydro-electricity scheme.

Project Challenges

Proposed 1,200 MW pumped storage component new challenge from Phase I

Financing for preparation of the pumped storage component Risks mitigation for the pumped storage component.

10Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

INGA- HYDROPOWER PHASE 1


REC Involved ECCAS


DRC, Congo River Countries


CAPP

ObjectivesContribute to energy security and Increase energy trade between DRC, Zambia and South Africa as well as DRC and Congo River Countries

Expected Results To Develop 4,200 MW capacity run of river hydropower station on the Congo river with eight turbines

Project Challenges

Final structure for project development yet to be established Weak capacity of SNEL as developer Large financial package not sustainable by National interest alone Power Off-take yet to be agreed Political risk of DRC Minimizing contingent liability on GODRC’s balance sheet


CENTRAL AFRICAN INTERCONNECTION


REC Involved ECCAS


South Africa, Angola, Gabon, Namibia, Ethiopia


CAPP

ObjectivesDevelop the transmission lines associated to the Inga Site (Inga 3 and Grand Inga)

Expected Results 3,800 km line from DRC to South Africa through Angola, Gabon, Namibia and to the North to Eq. Guinea, Cameroon and Chad

Project Challenges

• Coordinated development of generation and transmission• Close Coordination between GoDRC and Regional Organization Establishment of single entity SPV for development /operation of

Line Regional approach to reduce transit risks


SAMBAGALOU HP DAM

Cost (Million USD) 300

REC Involved ECOWAS


Senegal, OMVG countries (Senegal, Guinea, Guinea Bissau, Gambia)


EBID

Objectives To provide power to the OMVG Member States

Expected Results 128 MW of hydropower capacity, 930 km from the mouth of the Gambia River to supply Senegal, Guinea, Guinea Bissau and Gambia

Project Challenges

The project structure is still undecided. (PPP, IFI, Public Financing)

Financial sustainability of Dam unproven The role of Kaleta Dam in project structure uncertain The political support at OMVG and WAPP level is strong; Country political commitment of the countries changing over time


WEST AFRICAN POWER TRANSMISSION CORRIDOR


REC Involved ECOWAS


Guinea,Guinea Bissau, Gambia, Sierra Leone, Liberia, Côte d’ivoire, Ghana


WAPP, OMVS

ObjectivesEnsure transmission between the countries and transport regional energy to ECOWAS countries

Expected Results 2,000 km line along the coast connecting with the existing Ghana Nigeria line with a capacity of 1,000 MW

Project Challenges

Coordination between WAPP, OMVS and the Governments The lack of a single point of responsibility creditworthiness of the power sector in Guinea Bissau, Guinea

and The Gambia not established Establishment of single entity SPV for development /operation of

Line Link sufficient generation capacities in Guinea and Cote d’Ivoire

14


NORTH AFRICA TRANSMISSION


REC Involved UMA


Morocco, Algeria, Tunisia, Libya, Egypt


COMELEC

ObjectivesEnsure transmission between the countries and transport regional energy to UMA countries

Expected Results 2,700 km line from Morocco to Egypt through Algeria, Tunisia and Libya

Project Challenges

Clarify role of COMELEC and the Governments Establish Trade frameworks and develop Agreements for the

exchanges Regional versus National power market development advantages

15


BATOKA GORGE HP DAM


REC Involved COMESA/EAC


Zambia/Zimbabwe Zambezi basin


EAPP/ Zambesi River Authority

ObjectivesTo increase generation capacity and reduce reliance on electricity imports and improve generation mix

Expected Results construction of a 181 meter gravity dam; installation of 800 MW (4 x 200 MW units) for both Zimbabwe and Zambia. Transmission lines

Project Challenges

Mandate of Zambesi River Authority (ZRA) to raise financing or implement capital projects

Special Purpose Vehicle to raise financing and implement the project yet to be created

Poor Creditworthiness of participating utilities, ZESA and ZESCO Zimbabwe government classification with IFIs as defaulting


RUZZIZI III




Rwanda/DRC


CEPGL, EGL

ObjectivesShare power between Rwanda, Burundi and DRC promoted by CEPGL and develop local renewable energy as well as regulation of water basin

Expected Results Hydroelectric plant with a capacity of 145 MW

Project Challenges

Resources limitation of EGL for needs of the project The studies were launched to review the interconnection of South

Kivu and North Kivu and their interface with the CEPGL interconnected network.

Finalization of Establishment of a Basin Authority, necessary Finalized selection of preferered investors for PPP


RUSUMO FALLS




Nile River Basin Countries


NELSAP

ObjectivesProvide inexpensive electricity and improve energy security in the region

Expected Results

• dam and hydro-electric power station of about 61 MW on the Kagera River at Rusumo Falls;

• Power lines connecting the power plant to the electricity grids of Burundi, Rwanda and Tanzania.

Project Challenges

• Power sharing agreement between Burundi, Rwanda and Tanzania

• Environmental issues related to flooding (could affect wetlands downstream, including in the Akagera National Park)

Reservoir have a negligible effect on net evaporation


Overview of Presentation

•PIDA Priority Action Plan1

•Projects synopsis2

•Implementation Issues319

Roles of Utilities and Power Pools

Projects Fiches

- Update- Package- Fill gaps (physical and soft)

Commitments and Needs

- Capacity needs- Reforms needs- Project Preparation

Funding + Actions

- Tariffs- Creditworthiness- Maintenance and Operation

Influencing, Making Commitments , Acting together…

A time for action

MERCIOBRIGADOTHANK YOU

شكرا21

PIDA Rolling-Out the PAP

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