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

    For further information, portraits, photos and interviews:

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    Press contacts:

    Khatidja Kassam

    +33-6-11-07-15-18

    kkassam@le-public-systeme.fr;

    Catherine Dernis

    +33-6-99-89-52-33

    cdernis@publicsystemehopscotch.com

    SOURCE: The Democratic Republic of the Congo