The Democratic Republic of the Congo Fixes October 2015 as the Date for the Launch of the First Phase of the Largest Hydroelectric Plant in the World
The Democratic Republic of the Congo Fixes October 2015 as the Date for the Launch of the First Phase of the Largest Hydroelectric Plant in the World
AsiaNet 53063
PARIS, May 18, 2013 /PRN=KYODO JBN/ --
Following the initialling of an energy cooperation treaty between the
Democratic Republic of the Congo and the Republic of South Africa on 7 March
2013, the DRC has now re-launched the process for the selection of a developer
and established the objective of laying the first foundation stone for the
Grand Inga project in October 2015.
(Logo: http://photos.prnewswire.com/prnh/20130518/613896 )
The first phase of construction of the world's largest hydroelectric plant
will start in October 2015 on the banks of the Congo River. With a power output
of almost 40,000 MW, the Grand Inda project is expected to bring electricity to
half of the African continent.
At a meeting in Paris on 18 May 2013 organised by the government of the
Democratic Republic of the Congo, in the presence of a high level delegation
from the Republic of South Africa, all of the stakeholders participated in a
consultation process regarding the implementation of the first phase of the
project, Inga 3, with a power output of almost 4,800 KW.
The meeting, held under the auspices of Mr. Bruno Kapandji Kalala, Minister
of Water Resources and Electricity of the Democratic Republic of the Congo,
brought together the principal financial institutions, the candidates for the
role of project developer, as well as technical, financial and legal advisors
and experts.
The aim of the meeting was to permit discussion with the project's key
stakeholders of the main issues facing the project (the selection process, the
perimeter, technical definition options, structuring, financing) with a view to
determining how each partner might be involved. "All these exchanges served to
clear various obstacles so that the development of Inga 3 can begin," said
Minister Bruno Kapandji Kalala.
The cooperation agreement between the DRC and the RSA is critical and at
the center of the project
Highlight of the discussions: the historic treaty between the Democratic
Republic of the Congo and the Republic of South Africa that was initialled on 7
March 2013 in Lubumbashi. This initialling which confirmed cooperation on
energy matters between the two states is a major milestone for Grand Inga. By
way of these cooperative arrangements, the Republic of South Africa expects to
purchase a significant share of the electricity production of the new dam, thus
confirming itself as a key partner.
As such, the Republic of South Africa will take 2,500 MW of the 4,800 MW of
future power production of Inga 3, thereby becoming the principal purchaser.
"We have affirmed our commitment to the project by already provisioning for
this purchase in our budgetary plan," says Garrith Bezuidenhoudt, Chief of
Staff of the Ministry of Energy of the Republic of South Africa.
A project in line with the Program for Infrastructure Development in Africa
Inga 3 is expected to fill the power gap in the Democratic Republic of the
Congo, to meet the growing needs of the country's population and industries,
particularly mining, and to meet demand in South Africa. To this first phase
will be added subsequent steps that will permit countries in Southern Africa,
the North East of the Continent and parts of West Africa, to benefit from the
production of the site.
However, the issues surrounding the transportation of the energy and levels
of connectivity have yet to be addressed. "Inga is a factor for integration, at
both a regional and international level," says Minister Bruno Kapandji Kalala.
As such, the project is in line with the Programme for Infrastructure
Development in Africa (PIDA), a joint initiative of the African Union, the New
Partnership for Africa's Development (NEPAD), and the African Development Bank.
It provides for the implementation of regional projects in the sectors of
transport, energy, information technology and communication (ICT) and
management of cross-border water resources (GRET). Grand Inga will thus provide
more than half of the continent with renewable energy at a low price.
A public/private partnership (PPP) structure
Along with the two national partners, the rise of major financial actors
has rendered possible the project that had been conceived at the beginning of
the 1970s.
The Africa Development Bank has been involved in the project since 2009 and
is financing the base studies and consultants. It has been joined by the World
Bank, the French Development Agency, the European Investment Bank and the
Development Bank of Southern Africa.
Three consortia are involved in the project as candidates in the
competitive selection process for the role of developer: Sinohydro and Three
Gorges Corporation from China - the operator of the Three Gorges Chinese dam,
currently the world's largest; Actividades de Construccion y Servicios (ACS),
Eurofinsa and AEE from Spain; and the Daewoo-Posco-SNC Lavalin consortium from
Korea and Canada.
A consortium comprising the American law firm Orrick, Herrington &
Sutcliffe; the investment banks Lazard Freres and Tractebel Engineering, the
engineering consultancy of GDF Suez, is assisting the Government of the
Democratic Republic of the Congo on the management and implementation of the
project.
"The question of financing is a major issue in the selection process. It is
the public/private partnership financing solutions which will be vital for the
success of the project", says Mrs Hela Cheikhrouhou, Director for Energy
Environment and Climate Change Department at the African Development Bank.
A technique that takes into account social and environmental impact The
first phase of Grand Inga, Inga 3 Low-Head, will provide 4,800 MW. The
environmental and social impact study shows that this phase has no impact on
the population. They will not be affected by the flooded areas, which will
remain relatively limited. The Inga 3 Low-Head will have no environmental
impact on the flora and fauna of this area of sparse savannah.
"The original aim of the technical feasibility study was to structure the
Grand Inga project in several plants," says Edouard Dahome, Director for Africa
at EDF, which, alongside the American and French consultancies AECOM and
Nodalis Conseil, conducted a feasibility study for the project. A myth dreamed
of for 40 years, Grand Inga is becoming a reality with an action plan spread
over several plants which will be added in stages.
The Grand Inga site offers a combination of exceptional natural features:
the tributary zone of the Bundi to the Congo River has a fall of 100 meters
over approximately fifteen kilometers; with a rate of 40 000 m3 / s. Inga 3 is
divided into two phases. The first, starting in 2015, is called Low-Head,
located downstream. It does not involve a dam on the river, but an intake from
its tributary. These conditions will produce electricity at a very attractive
cost. The second phase called Inga 3 High-Head, with a dam across the river and
the raising of the water retention of the Low-Head will add 3,000 MW of
capacity. After that, five other plants will be installed on the same dam to
provide a capacity of 40,000 MW.;
A hydroelectric installation already exists on the Congo River at this
level with dams Inga 1 and 2, two plants in operation since 1972 and 1982
respectively and a total capacity of nearly 1,800 MW.
Technical Fiche for Inga 3 Low-Head:
Production of Inga 3 Low-Head: 4,800 MW (ie the equivalent of the
production of four nuclear plants)
Of which, to be supplied to South Africa: 2500 MW
Estimated construction cost: USD 8.5 billion (value 2011)
Estimated total financing needs, including inflation and financial costs:
almost USD 12 billion
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kkassam@le-public-systeme.fr;
Catherine Dernis
+33-6-99-89-52-33
cdernis@publicsystemehopscotch.com
SOURCE: The Democratic Republic of the Congo
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