AfrElec Week 18, Issue 53

™™ Hard sell for hydro The Batoka Gorge HPP is technically possible and offers cheap power, but a
high price tag, an outdated development plan and Zimbabwe’s poor financial
reputation are likely to make securing investment difficult
™™ Nigerian power plans International companies looking at energy projects in Nigeria have been
urged to consider the country’s pension funds as co-investors
™™ Market liberalisation Cote d’Ivoire could liberalise its power distribution market in a bid to attract
investors and reduce the cost of electricity
™™ Coal deal Australia’s Resgen is closer to sealing a US$141m deal with Sedgman to
procure coal-handling equipment for its Boikarabelo mine in South Africa
Issue 53 11•May•2016 Week 18

P2 Week 18 11•May•2016w w w. N E W S B A S E . c o m
AfrElecAfrElec
MexicoDeepwaterSpecialReport
2016 £440
Buy today for exclsuive insight on the
following and much more:
™™ Deep impactData on the blocks being offered in Mexico’s first deepwater
bid round have reportedly made the majors “drool”. We
analyse the acreage that could attract capex of up to US$44bn.
™™ Sweetened termsThe bid rules for the ten deepwater blocks on offer will be less
stringent than previous auctions. The regulator provided us
with essential details for bidders.
™™ Pemex participationInternational oil companies may look to partner with Pemex,
which has said that it will participate in the deepwater bid
round. We look at the risks and rewards of such a strategy.
™™ Local knowledgeOperators are positive about Mexico’s flexible local content
requirements. We find out why and how the country has
learned lessons from Brazil’s mistakes.
To find buy the report, click here or visit:
shop.newsbase.com
NewsBase’s new weekly monitor covering
energy-specific project finance, acquisitions and
company performance from around the world.
To find out more and sign up for a Free Trial,
click here or call us on
+44 131 550 9281
ENERGYFINANCEWEEK

P3Week 18 11•May•2016 w w w. N E W S B A S E . c o m
AfrElecAfrElec
C O M M E N TA R Y
Have a question or comment? Contact the editor – Richard Lockhart (richardl@newsbase.com)
Copyright © 2016 NewsBase Ltd. All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes
internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
C O N T E N T S
Zimbabwe and Zambia’s hydro dreams likely to be a hard sell 4
Nigerian PenCom’s power plans 6
P O L I C Y
Zambians suffer extended load-shedding 7
Cote d’Ivoire to liberalise distribution market 7
I N V E S T M E N T
SA pushes domestic electrification 8
C O A L - F I R E D T H E R M A L G E N E R AT I O N
Makomo to build 600-MW coal TPP in Zimbabwe 8
C O A L
Resgen signs SA mine contract 9
R E N E WA B L E S
Rwanda drives forward solar projects 9
Zanzibar needs renewables to provide reliable power 10
N E W S I N B R I E F 12
O U R C U S TO M E R S 18

AfrElecAfrElec
ZIMBABWE and Zambia’s US$5 billion Batoka
Gorge hydropower development could be com-
pleted by 2023, the Zimbabwean Minister for
Energy has claimed.
SamuelUndengesaidlastweekthecountries
wouldundertakeafeasibilitystudyfortheZam-
bezi River development by July this year.
But Harare and Lusaka have yet to attract
financing for the 2,400-MW proposal, which
could see both countries exporting electricity to
the South African Power Pool (SAPP).
“We hope there will be financiers that come
through because it’s a very viable project,”
Undenge said. “We estimate that it will come
outataboutUS$0.05perkWhwhencompleted,
which is far below solar energy and thermal
power.”
Southern Africa is in the midst of a drought
whichZimbabwe’sagricultureministryhaspre-
viously compared to severe dry conditions in
1992 responsible for a regional recession.
Hydropower generated 21.02% of electricity
suppliedthroughthecommonSAPPmarketlast
year.
But both Zimbabwe and Zambia have seen
low water levels at the 1,620-MW Kariba HPPs,
which have been generating at half capacity.
Given current climate patterns, the sustaina-
bility of another large-scale hydropower invest-
mentinSouthernAfricameritsfurtherscrutiny.
Run-of-the-river
Hydropower continues to be popular in the
Zambezi Basin, with major projects planned,
such as Zimbabwe’s 300-MW extension to
Kariba South and Mozambique’s 1,000-MW
Chemba HPP.
These projects were conceived prior to the
current drought, which underlined the need for
Southern African countries to diversify their
energy mixes away from hydropower.
The proposed Batoka Gorge facility would
be located 54 km downstream from the Victo-
ria Falls, in an area straddling Zimbabwe and
Zambia.
Current development plans envision two
underground power stations either side of the
border, each holding four 200-MW Francis
turbines. The latest feasibility study will update
work undertaken in 1993 and 2009, which sug-
gested the eight-turbine scheme would be tech-
nically and financially viable.
Developers will also need to renew the envi-
ronmental impact assessment (EIA) and statics
integrated assessment (SIA) carried out in 1993
and 1998 respectively, according to the Com-
mon Market for Eastern and Southern Africa
(COMESA).
One key issue will be Batoka Gorge’s con-
ception as a run-of-the-river generation plant,
without a large reservoir for water storage and
regulation.
Althoughthelackofareservoiravoidsflood-
ing in the upper river, these facilities are highly
prone to the effects of drought, which can sub-
stantially diminish electricity generation.
Alternatives
Updated feasibility studies will also need to
consider alternatives for electricity generation
emerging in both countries.
In February, Zambia launched its 120-MW
Itezhi Tezhi HPP with enough capacity to close
21% of the country’s generation deficit.
ZimbabwesignedupaChineseconstruction
firm to build the 600-MW, coal-fired Lusulu
HPP last year, and both countries are targeting
the generation of around 300 MW from solar
power to safeguard against dry seasons.
In certain respects, and despite progress on
thealternatives,BatokaGorgeremainsanattrac-
tive proposition.
Hydro is still by far the cheapest source of
electricity in Zimbabwe and Zambia, with sig-
nificant hydro-potential still to be tapped.
In Zimbabwe, hydro costs were reported
at US$0.015 per kWh as of 2015, as against
US$0.08-0.012 for coal and US$0.20-0.30 for
solar power.
Furthermore, the 1993 feasibility study con-
cluded Batoka would produce power for less
than any other potential HPP regionally with
the exception of a 450-MW expansion at Kafue
Lower Gorge.
Once completed, Batoka’s high capac-
ity could be enough to turn Zimbabwe and
W H AT:
Zimbabwe is confident
that the US$5 billion
Batoka Gorge HPP can be
built by 2023
W H Y:
Southern Africa is keen
to exploit its hydro
resources to meet rising
demand
W H AT N E X T:
With no funding for the
2,400-MW project in
place, and doubts about
Southern Africa’s hydro
potential, the prospects
are not as rosy as
Zimbabwe and Zambia
hope
Zimbabwe and Zambia’s hydro
dreams likely to be a hard sell
The Batoka Gorge HPP is technically possible and offers cheap power, but a high price tag,
an outdated development plan and Zimbabwe’s poor financial reputation are likely to make
securing private or institutional investment difficult, writes Callum Cyrus
One key issue will
be Batoka Gorge’s
conception as a
run-of-the-river
generation plant,
without a large
reservoir for
water storage and
regulation
C O M M E N TA RY
ZIMBABWE

AfrElecAfrElec
Zambia into exporters via the Zambia-Zimba-
bwe interconnector to Botswana and Namibia,
and the upcoming Zambia-Tanzania-Kenya
interconnector.
Exports from Batoka Gorge would bring
Zambia, and especially Zimbabwe, valuable
inflows of foreign currency from their Southern
African neighbours.
Payment details
ZimbabweandZambia’sabilitytoattractfinanc-
ingforBatokaGorgewillbecrucialtodetermin-
ing the development’s success.
Zimbabwe, in particular, struggled to attract
private investment during the crippling reces-
sionexperiencedfrom2000-2009,andinvestors
still have concerns about dealings with Harare.
Zimbabwean President Robert Mugabe’s
controversial tenure has eroded confidence in
fundamental investment variables such as the
protection of property rights.
Harare and Lusaka favour a public-private
partnership (PPP) at Batoka Gorge, and Zim-
babwe has introduced a BOOT PPP incentive
package which includes a five-year tax holiday
followed by five years of reduced taxes.
According to the Corporate Council, Zim-
babwean investments have seen growing inter-
national interest in recent years, with business
delegations visiting from France and the United
Kingdomin2015.Chinesefinancierssteppedin
to fund the 300-MW Kariba South extension,
which is being developed by Sinohydro.
Tellingly, however, the Exim Bank of China
withheld funding for the scheme in April 2015
because Harare had missed too many loan pay-
ments at other projects.
There is scope for a PPP to work at Batoka
Gorge, but the chances are narrowing as Zim-
babwe battles another recession caused by the
slowdowninChina–Zimbabwe’ssecondlargest
trading partner.
Investors also need to be convinced that a
large-scale project like Batoka can turn a profit,
something which would require cost-reflective
tariffs in both Zimbabwe and Zambia.
The high price tag is likely to make securing
private or institutional investment difficult, and
Zimbabwe’s financial and political predicament
will probably hinder confidence in the PPP
framework.
What now?
With an outdated development plan, Batoka
Gorge is a tough sell for Harare and Lusaka as
work continues on other projects.
Convincing private or developmental inves-
torstosignuptoalargehydropowerscheme,ata
timewhenchangingclimatepatternshaveposed
significant challenges, could be difficult.
NewsBase believes there is a chance the two
governmentscouldattractChinesedevelopment
financing,butmuchwilldependontheresultof
feasibility studies scheduled for the summer.
Theschemeundoubtedlyhassignificantgen-
erationpotentialand–potentially–lowcostsof
production, so it is understandable that Harare
is continuing to push the idea.
Hydro is still the cheapest option in this
region, but investors need to be convinced sig-
nificant capital expenditures can be recouped
before joining a PPP.
Unfortunately, NewsBase believes the uncer-
tainty in Zimbabwe could undermine confi-
dence in Batoka Gorge’s long-term viability,
though this might be tempered somewhat by
partnering with Zambia.
The two countries might be better off entic-
ing foreign investment in smaller schemes
which diversify the energy mix, even though
hydropower will continue to play a key role in
electricity supply.v
Convincing
private or
developmental
investors to sign
up to a large
hydropower
scheme could be
difficult
C O M M E N TA RY
The Batoka Gorge

AfrElecAfrElec
WITH only 3,000 MW of operational on-grid
generating capacity serving a population of 170
million, the need for investment in power and
energy infrastructure in Nigeria is critical.
Investorsremainwaryoftherisksinherentin
the country, such as the weak legal regime, high
bankinginstabilityandunreliableinfrastructure.
This makes partnership with large and stable
domestic players with whom they can co-invest
to mitigate such risks an attractive option.
Chinelo Anohu-Amazu, director-general of
the National Pension Commission (PenCom)
ofNigeria,toldNewsBaselastweekthatthiswas
a role her agency was eager to fulfil. She said it
wanted to encourage international investors to
co-investwithNigerianpensionfundsonenergy
infrastructureprojects,withPenComproviding
the guidelines under which that co-investment
could take place.
Anohu-Amazu, who was in Edinburgh to
deliver the keynote speech at the Scottish Busi-
ness in Africa Forum (SBIAF), hosted by the
Sustainable Business Initiative (SBI) at the Uni-
versity of Edinburgh Business School, said part
of her mission was to support the government’s
commitmenttoincreasepowersupplyacrossthe
country.
“Whenwearetalkingofpowerinfrastructure
we are talking about the whole range of the sec-
tor: generation, distribution, transmission,” she
said. “The key thing is to develop appropriate
investment vehicles that the pension funds can
go into to support these projects.”
She said international companies studying
major energy projects in Nigeria must identify
a stable and well-funded co-investor on the
ground to partner with. The pension funds,
whichoverseearound5trillionnaira(US$25bil-
lion),areideallysuitedbecausetheir“long-term
nature lends itself to the developmental nature
ofinitiativeslikegaspipelinesandpowerplants.”
InNigeriathereare21pensionfundadminis-
trators(PFAs)thatinvestandmanagethefunds,
andfourpensionfundcustodians(PFCs),which
hold the funds in trust. Both the PFAs and PFCs
are regulated by PenCom, which oversees the
entire industry.
Anohu-Amazustressedthatthesharedregu-
latory background of the pension funds, as well
as strict corporate governance requirements,
made them good partners for co-investment.
Rethink required
Yet while she is confident that the funds would
makeanidealpartnerforinwardinvestors,Ano-
hu-Amazu said there had to be a change in the
approach of the investment community with
respect to Nigeria and Africa as a whole.
“What I think is required is a shift from that
negativity, this view that ‘it’s not safe to invest
there’ and that you must quickly maximise your
returnsbeforeexiting.Thatisnotadevelopmen-
tal mentality and that is not the type of investor
that we are looking for,” she said.
Anohu-Amazu stressed that investment
vehicles for infrastructure projects in Nigeria
were structured in the same way as they would
be in Hong Kong, London or New York. The
needforstrictcorporategovernanceandregula-
torycomplianceforinfrastructurebondsmeant
thatriskforinvestorscouldbemitigated,though
not“obliterated”,whichshesaidwasanunrealis-
ticgoalinanyinvestmentanywhereintheworld.
“Thejobistomitigatethoseriskssothatthey
do not interfere with the expected [return on
investment]ROI.It’sano-brainerthat,forexam-
ple,wearetalkingaboutsolarpowerinacountry
of 170 million that don’t have reliable electricity
provision.”
Risk reduction
One possible risk identified by investors is that
should there be another banking crisis in Nige-
ria, as happened in 2008-09, the state might not
be strong enough to bail out the banks. Ano-
hu-Amazu said this should not be a primary
concernforinvestorsininfrastructure,especially
if they come on board as part of a public-private
initiative in partnership with the pension funds.
“What we are doing is developing alternative
means of financing projects because the banks,
with their high interest rates, are not necessar-
ily suited to long-term investing,” she said. “The
Nigerian Pension Commission is propagating a
paradigm shift from that mind-set of the banks
having to bail out infrastructure projects, or the
banks themselves being bailed out by the state.”
She went on to say: “The primary aim of the
funds is to pay returns and benefits to pension
contributors. But we also have to invest that
moneywellandinawaythatbenefitstheretirees
andthecountryalike.Sointermsofahypothet-
ical bailout, I am thinking there should not be a
focus on one source of financing. It has to be a
collaborative effort with multiple sources and a
diversification of risks.”
Risk mitigation is a key concern for compa-
nies looking at Nigeria. Securing the support of
well-regulated bodies such as the pension funds
and leveraging their experience and resources
looks to be a viable route for investors to take
when considering capital expenditure on major
long-term energy projects. And with on-grid
capacitylevelslowereventhanNorthKorea,the
need for the rapid deployment of such projects
is clear. v
W H AT:
The funds are well placed
to structure investment
vehicles that reduce
risk and expedite the
development of long-term
projects
W H Y:
They are heavily
regulated and committed
to investments that
benefit their contributors
as well as the country
W H AT N E X T:
The harnessing of
investment via public-
private initiatives and
other vehicles ought to
ramp up power capacity
additions
Nigerian PenCom’s power plansInternational companies looking at energy projects in Nigeria have been urged to consider
the country’s pension funds as co-investors, writes Ryan Stevenson
C O M M E N TA RY
NIGERIA
Chinelo Anohu-Amazu
Director-general of
the National Pension
Commission (PenCom)
of Nigeria

AfrElecAfrElec
COTE d’Ivoire President Alassane Ouattara has
called for an end to the distribution monopoly
held by Compagnie Ivoirienne d’Electricite
(CIE). The president is hoping to attract inves-
tors in the sector to create healthy competition
and thereby bring about a drop in the cost of
electricity.
“I’ve asked the Prime Minister to plan for a
distribution of electricity by many companies,”
Ouattara stated. “It’s when we’ll have several
companies that the prices will go down because
distribution is too expansive,” he added.
CIE is a unit of Eranove, which also has a
stake in the West African nation’s water dis-
tributor, Societe de distribution d’eau de la Cote
d’Ivoire (SODECI).
Eranove has been doing business in Cote
d’Ivoire for several decades and has also con-
ducted business in Senegal, the Democratic
Republic of Congo (Kinshasa) and Mali.
Eranoveoperatesaninstalledpowercapacity
of more than 1,100 MW in Cote d’Ivoire, which
accounts for over half of the nation’s electricity
production capacity. Abidjan is seeking to dou-
ble its power production capacity to 4,000 MW
by 2020.
Eranove has been supplying Cote d’Ivoire
with electricity since 1990 under an agreement
withthegovernmentthatrunsuntil2020.Ouat-
tara has not revealed how utility markets will be
liberalised, or if it is possible to do so before the
expiration of the deal with Eranove.
Foreign electricity operators in Cote d’Ivoire
say the nation has developed and maintained
a regulatory framework for the power sector,
which has encouraged investor confidence.
A defined set of rules for how CIE has to pay
independent power producers (IPPs) has had a
big impact, ensuring transparency in the sector,
as all the operators know that they will get paid.
Aswell,awaterfallstructuregivesindepend-
ent electricity generators a relatively high place
in the payments queue.
Last June, the government decided to hike
electricity prices by 16% staggered over three
years to keep pace with production costs.
Energytariffshadbeenscheduledtoincrease
by5%inJanuary;however,somecustomershad
complained of rates rising by as much as 40%.
Consequently, Ouattara cancelled the January
ratehikeandvowedtodevelopamorecompeti-
tive industry in the nation.v
LOAD-SHEDDINGinZambiahasbeenlasting
longer than the scheduled eight hours per day
recently as technical faults in the Zimbabwean
grid caused imports to fall.
Zambian Energy Minister Dora Siliya told
the Zambian Parliament that there had been a
fault with the power interconnector between
Zimbabwe and Zambia, which usually pro-
vides electricity generated in South Africa and
Mozambique.
“Normal load-shedding is supposed to be
eight hours according the schedule, but in the
recent past days some parts of the country have
experienced extended hours of load-shedding
because we have a problem with the intercon-
nector,” she said, local media reported.
Siliya said the fault was being worked on and
thatZambiawasexpectedtoreturntoitsnormal
eight-hour load-shedding. He comments came
in response to questions about the power situa-
tion posed by Zambian MPs.
Zambiahasbeengrapplingwithapowerdefi-
cit of around 1,000 MW over the past two years,
largelycausedbydepletedrainfallandlowwater
levelsatmostofthecountry’shydropowerplants
(HPPs).
Siliya said the Kafue Gorge HPP, which nor-
mally has 990 MW of capacity, was currently
generating below 600 MW, while the Kariba
North HPP, which has maximum capacity of
1,080 MW, was generating less than 300 MW.
“Even as we import emergency power, we
are still not being able to produce all the power
needed. That’s why we have continued with
load-shedding,” Siliya said.
Deputy Energy Minister Charles Zulu said
that the government was continuing to import
emergency power, which had been stable at 40
MW per day from 6.00 am to 10.00 pm, adding
that the emergency power contract for Aggreko
would expire in December this year.
Zulu said that the imports were necessary
because of continued low water levels at the
country’s reservoirs.
Zambiaiscurrentlyimporting300MWfrom
neighbouring countries.v
Zambianssufferextendedload-shedding
Coted’Ivoiretoliberalise
distributionmarket
P O L I C Y
Zambia has been
grappling with a
power deficit of
around 1,000 MW
over the past two
years
Foreign electricity
operators in
Cote d’Ivoire
say the nation
has developed
and maintained
a regulatory
framework for the
power sector
ZAMBIA
COTE D’IVOIRE

AfrElecAfrElec
ZIMBABWEAN coal miner Makomo
Resources is firming up plans to build a 600-
MW, coal-fired thermal power plant (TPP) at
Hwange with financial assistance from China.
Makomo Resources director Raymond
Mutokony said his company would finalise the
developmentplanfortheHwangepowerproject
by the fourth quarter of 2016.
“We hope that by the fourth quarter a lot of
ground would have been covered,” Raymond
Mutokony told The Chronicle, a local daily.
Sinohydro has prepared a detailed feasibility
study to build a 2x300-MW TPP near Makomo
Resources’ mines at Hwange through an esti-
mated investment of US$1.5 billion.
China has agreed to provide a soft loan for
this proposed power project. Zimbabwean
Finance Minister Patrick Chinamasa said that
Beijing had conveyed its willingness to fund the
development and two other 600-MW power
projects – China Sunlight and Lusulu – during
bilateral talks held after Chinese President Xi
Jinping visited Harare in December.
After the slump in global coal prices,
Makomo is looking to build the power project
to maintain production levels at its coal mines.
“We have the capability to produce 350,000
tonnes per month but we are producing less
because of subdued demand and low interna-
tional commodity prices,” said Mutokonyi.
Makomo produces 250,000 tonnes per
month from its mines at Hwange.
It delivers most of its output to the Hwange
power station operated by state-run Zimbabwe
Power Co. (ZPC) and exports the remainder to
ZambiaandMalawi.Thecompany’scoalconces-
sion, spread over 70 square km in the Bulawayo
district, is estimated to have 400 million tonnes
of coal reserves.
TheZimbabweangovernmentispushingthe
development of the greenfield Makomo, China
SunlightandLusuluprojectsandZPC’sseparate
600-MW brownfield project to meet growing
demand for power in the country, which is esti-
mated to reach over 3,500 MW by 2018.
Exim Bank of China has agreed to provide a
US$1.2 billion loan to build two extra 300-MW
units at ZPC’s Hwange power station.v
THE South African Department of Energy
(DoE) is to invest 7.5 billion rand (US$494 mil-
lion) in new power infrastructure in the 2016-
17 financial year, with 6.8 billion rand (US$448
million) going to provincial and municipal gov-
ernments to fund energy improvements, with
a focus on connecting 100% of the country’s
homes to the grid.
South African Energy Minister Tina Joe-
mat-Pettersson told the National Council of
Provinces (NCOP) that the proposed budget
aimedtohelpthegovernmentmeetitslong-term
goal of building 10,000 MW of new capacity by
2025.
“One of our ongoing needs remains the elec-
trification of domestic housing,” the minister
said,notingthathouseholdelectrificationaccess
currently stood at 88% across the country.
“The Integrated Electrification Programme
[INEP] and its implementing agencies Eskom,
municipalities, and non-grid service providers
have made remarkable progress in increasing
access to electricity in South Africa,” she added.
The budget will allocate 5.5 billion rand
(US$362.5 million) to INEP, Joemat-Pettersson
said, “ensuring the department keeps bolster-
ing its mandate in eradicating lack of electricity
access, using both grid and non-grid technol-
ogies.” The minister added that 200 million
rand (US$13.2 million) would be used to fund
consulting services for the country’s nuclear
programme.
“Funding for state-owned entities such as
the South African Nuclear Energy Corporation,
National Nuclear Regulator and the South Afri-
canNationalEnergyDevelopmentInstitutewere
maintained at existing funding levels. NECSA
will receive 599.34 million rand [US$39.5 mil-
lion] in 2016/17, while the NNR and SANEDI
will receive 16.64 million rand [US$1.1 mil-
lion] and 20.63 million rand [US$1.36 million]
respectively.”
She also pointed out that the Renewable
Energy Independent Power Producer Procure-
ment Programme (REIPPPP), which attracts
private investment into renewable energy ven-
tures such as solar and wind plants, had seen 26
billion rand (US$1.7 billion) spent on Broad-
Based Black Economic Empowerment during
construction.v
C O A L- F I R E D T H E R M A L G E N E R AT I O N
SApushesdomesticelectrification
Makomotobuild600-MWcoal
TPPinZimbabwe
I N V E S T M E N T
“One of our
ongoing needs
remains the
electrification
of domestic
housing”
Tina
Joemat-Pettersson
SouthAfricanEnergy
Minister
After the slump
in global coal
prices, Makomo
is looking to build
the power project
to maintain
production levels
at its coal mines
ZIMBABWE
SOUTH AFRICA
South African
Energy Minister Tina
Joemat-Pettersson

AfrElecAfrElec
THE Rwandan government intends to con-
struct 100 solar mini-grids in rural areas as part
of efforts to mitigate the effect of climate change
and to establish a resilient economy.
The commitment forms one of the Intended
NationallyDeterminedContributions(INDCs)
that the Paris climate treaty has created to drive
forward reductions in carbon dioxide (CO2)
emissions.Rwandaand160othercountrieshave
now signed the Paris treaty.
Rwandan Foreign Minister Louise Mushiki-
wabo said the East African country was vulner-
able to the effects of climate change and needed
to establish a climate-resilient economy.
Rwanda’s INDC, which is a kind of action
plan, includes “sustainable small-scale energy
installations” that mainly target rural commu-
nities that depend on kerosene for lighting and
wood fuel and agriculture residues for their
cooking needs.
MushikiwabosaidthatRwanda’sVision2020
andGreenGrowthandClimateResilienceStrat-
egy would steer the country towards becoming
a developed, climate-resilient and low-carbon
economy by 2050.
She said that the least developed countries
needed support through increased levels of cli-
mate technology and finance transfer.
The agreement will come into effect after 55
countries that account for at least 55% of global
emissions have deposited their ratification
instruments.
HesaidRwandahadcreatedtheGreenFund,
which has so far attracted over US$100 million
in pledges to support climate resilience initia-
tives all over the country.
Rwanda’s renewable energy investment
planswereendorsedbytheUN-backedClimate
InvestmentFunds(CIF)inNovember2015.The
countrycannowreceivefundingundertheScal-
ingUpRenewableEnergyinLowIncomeCoun-
tries Programme (SREP).
SREP funding of US$50 million will help
develop financially sustainable long-term mar-
kets that will allow private investors to provide
off-gridelectricityservices.About1.5millionof
Rwanda’s12millionpeopleareexpectedtoben-
efit from the SREP.v
AUSTRALIANcoaldeveloperResourceGener-
ation (Resgen) has signed a heads of agreement
(HoA) and letter of intent (LoI) with mineral
processing company Sedgman, part of Austral-
ia’s CIMIC Group, for the design, procurement
and construction of a coal-handling and prepa-
rationsplantatSouthAfrica’sBoikarabelomine.
The US$141 million contract is one of the
components in Resgen’s final phase towards the
development of the mine, which is estimated to
hold coal reserves of up to 744.8 million tonnes.
Resgen’s investment in the Boikarabelo
mine looks attractive, as coal remains a major
feedstock for power generation. The Waterberg
region,wherethemineislocated,containsupto
40% of South Africa’s coal reserves.
“The contract price represents a substantial
saving over the previously announced estimate
and was achieved as a result of the Sedgman
design offering a smaller footprint with associ-
ated capital savings while offering equal, if not
improved,productionoutputs,”Resgensaidina
statement last week.
Resgen said it was also negotiating a three-
year operations contract for the new plant with
Sedgman “effective following the expiry of a
15-month operations contract to cover the war-
ranty period post-commissioning.”
Resgen had hoped to commence production
intheBoikarabelominebymid-2016,“subjectto
securingdebtfundingofUS$500milliontocom-
plete construction and buy mobile equipment.”
However, the plan has been hampered by the
weak global coal prices that have seen potential
financial investors hold back their initial com-
mitment to fund the project.
Although the coal developer had in 2014
signed a US$113 million loan with Komatsu
Financial to finance the acquisition of its mobile
equipment fleet, the company said in its 2015
full-year financial report that “the weakening
coal price has, however, delayed credit approval
from the club of financiers with which we were
negotiatingtoobtaintheremainingUS$400mil-
lion capital requirement.”
Financiers of the project include Rand Mer-
chant Bank, HSBC Bank, Industrial Develop-
ment Corporation of South Africa, PIC, Noble
Group and Export Finance Insurance.
Although the company says the contract
mining options have been evaluated previously
and found unviable, “it is possible in the current
market that circumstances may have changed
and consequently we are now seeking quotes
fromminingcontractors–aprocessthatislikely
to take several months to complete.”v
R E N E WA B L E S
ResgensignsSAminecontract
Rwandadrivesforwardsolarprojects
C O A L
Resgen’s
investment in
the Boikarabelo
mine looks
attractive as coal
remains a major
feedstock for
power generation
in South Africa
AUSTRALIA
Rwanda’s
Green Growth
and Climate
Resilience
Strategy will
steer the
country towards
becoming a
developed,
climate-resilient
and low-carbon
economy by 2050
RWANDA

AfrElecAfrElec
THE islands of Zanzibar in Tanzania currently
rely heavily on electricity imported from the
mainland, but as fears grow that the supply of
energy from hydropower and natural gas could
dwindle and become too expensive, energy
experts say the country could be best served by
promoting renewables.
Currently, subsea cables from Tanga and
Dar es Salaam provide electricity to the islands,
but wind, solar, wave power and biogas have all
been suggested as possible alternative sources of
electricity.
Boostingpowersuppliesontheislandswould
create a domino effect and improve Zanzibar’s
economy. Factories and schools would bene-
fit greatly from energy for heating and lighting
and consequently lead to the unemployment
ratedropping. Likewise,mostruralareasonthe
island depend on agriculture, with electricity
imperativeforirrigationandcropproduction,as
wellasforsmallindustrialcommercialactivities.
With an abundance of sunshine and sufficient
wind, an expansion of solar and wind energy is
being heavily pushed for by local activists.
Researchers on the island have launched
the Renewable Energy Zanzibar Association
(REZA)andthegrouphasreceivedsupportfrom
theDeputyMinisterofLand,Water,Energyand
Environment, Juma Makungu Juma.
The deputy energy minister has promised
thatthegovernmentwillsupporttheassociation
in the development of the electricity sector on
the islands.
Officers from REZA have stated that their
roles at this time of operations include advising
the government on issues relating to renewable
energies.
They will also seek to promote, co-ordinate
and monitor social projects based on renewable
energies as well as facilitate national, regional
and international co-operation on technology
development and transfer.
Officials from the Energy Ministry have wel-
comed investors in an effort to have alternative
energy sources added to the current hydro-
power from the national grid. However, despite
this hydro remains cheaper than solar, wind,
or biogas. In recent years, power transmission
fromthemainlandhasnotbeenreliable,leading
tomountingpressurebeingputonpoliticiansto
find alternative sources of energy to ensure the
islands have a sustainable supply.v
Zanzibarneedsrenewablesto
providereliablepower
R E N E WA B L E S
Boosting power
supplies on
the islands
would create a
domino effect
and improve
Zanzibar’s
economy
ZANZIBAR
HARD DATA COLD LOGIC
NewsBase Research (NBR) is our in-house data
and analysis division. As part of its service offering,
NBR has developed a market-leading forecasting
service for the global power industry, including:
• Power demand forecasts by country and
region.
• In-depth datasets of current and planned
infrastructure capacity, including foresight on
future power mix decisions by economy.
• Forecasts for future supply/demand stress
points by economy.
Power
Forecasts
Datasets
For more information, email nbr@newsbase.com
with your country or region of interest.

AfrElecAfrElec N E W S I N B R I E F
P O L I C Y
EU wants to boost energy
partnership with Algeria
The European Union seeks to further
develop its partnership with Algeria in the
field of energy, said Monday in Algiers EU
Ambassador Marek Skolil. “The EU and
Algeria have built a sound partnership in
the field of energy, but we want more in the
interest of the two countries, said Skolil during
an information day at the headquarters of the
Ministry of Energy, ahead of the Algerian-EU
Business Forum on Energy, to take place in
Algiers on May 24.
The information day, co-held by Energy
Ministry Director General of Hydrocarbons
Mustapha Hanifi and Electricity and Gas
Regulation Commission (CREG) Chairman
Abdelalil Badache, was attended by
representatives of private companies. Skolil
has pointed out to the need for adoption
with the current world changes through
changing strengthening relations stressing
that the Algerian-EU Business Forum is a
an opportunity to reach such aim. Besides,
he welcomed the participation of Algerian
private companies to the Forum, which will
be open to leading groups as well as to small
companies.
The Forum, will focus on issues relating to
gas, renewable energies and energy efficiency.
During the information day, Hanifi said that
about one hundred European companies
have already confirmed their participation in
the Forum, adding that most of them will be
represented by their respective CEOs. As he
deplored due to poor participation of Algerian
private companies want to part take in the
forum which are only ten. The Forum is open
for private operators in the manufacturing
of equipment used in the fields of renewable
energies and energy efficiency, including the
smallest equipment, he explained.
ENNAHAR (ALGERIA), May 9, 2016
Fashola hopes to boost
power with 99 billion naira
As the implementation of the 2016
Appropriation Act, signed last week by
President Muhammadu Buhari commences,
the Federal Government is set to inject 99
billion naira to revamp the country’s power
sector through the Federal Ministry of Power,
Works and Housing. The sum of 433 billion
naira was appropriated for the ministry.
Out of the appropriated amount, according
to documents obtained yesterday from the
ministry by The Guardian, the other two
segments of the Ministry, Works and Housing,
are to get 268 billion naira and 66 billion naira
respectively to execute planned projects in the
next one year. It is not immediately clear how
much difference the 99-billion-naira budget
can make, but the generation and distribution
firms have expressed fear that the planned
growth of the sector may be stunted by lack of
required liquidity even as the ministry plans
to introduce measures to tackle the problems
inherent in the operations.
Although government plans to complete
47 transmission projects in the fiscal year, step
up work on Zungeru Hydro Power Plants,
among others, the concerns about the ability
of operators to resolve the liquidity issue is
growing.
THE GUARDIAN (NIGERIA), May 11, 2016
Zimbabwe seeks energy
framework with SA
The Zimbabwean government is seeking
an official framework with South Africa to
structure energy deals, Energy and Power
Development secretary Partson Mbiriri has
said. An agreement in principle was reached
between Energy and Power Development
Minister Samuel Undenge and his South
Africa counterpart Tina Joemat-Pettersson
last month although no timelines have been
indicated yet on when the pact should be in
place.
Mbiriri said the two ministers will sign a
Memorandum of Understanding, informed
by the fact that South Africa and Zimbabwe
share many things, which include electricity,
fuel and infrastructure. He said that there
is recognition of the fact that while the
neighbouring trading partners have been
sharing a lot in the energy sector, most of
it has been happening outside an official
framework. “It was the decision of the two
ministers when they met last month that there
be a framework on the basis of which we then
can explore various avenues. South Africa, for
example, is way ahead in terms of renewable
energy, in particular solar,” Mbiriri said.
THE HERALD (ZIMBABWE), May 9, 2016
G R I D
Nigeria to decentralise
power transmission
networks
Nigeria is seriously considering the
decentralisation of its power transmission
network into segments, which could be
granted to private operators to invest in,
manage and charge transmission fees,
Minister of Power, Works and Housing
Babatunde Fashola said. He said that due
to the current challenges of the country’s
transmission network, a proposal on the
‘technical possibilities’ of decentralising the
huge transmission grid was already on the
table of the government.
He said the proposal, if it goes through,

AfrElecAfrElec N E W S I N B R I E F
would enable the government to invite
private operators to invest and manage
segments of the grid on an agreed commercial
framework. He said the adopted roadmap
of the President Muhammadu Buhari
government for the power sector was first to
ensure that power generation in the country
remained incremental, its transmission stable
and distribution uninterrupted. Fashola also
disclosed that a total of 907 containers loaded
with transmission equipment at the country’s
sea port have been ordered to be released to
the Transmission Company of Nigeria (TCN)
and its contractors by Buhari.
This, he noted, would allow the TCN
complete extant transmission projects, which
would see it grow its wheeling capacity to
20,000 MW of electricity within five years.
“We are also looking at technical possibilities
that support the decentralisation of the grid
while keeping them interconnected. This will
help us take up offers of private investment
that ensures investors can ring fence and
collect revenues wheeling charges for the
power they help to transmit or transport,”
Fashola said.
THISDAYLIVE.COM (NIGERIA), May 5, 2016
Huawei advises integration
of power services in Nigeria
To build a better connected smart grid,
power utilities in Nigeria need to focus on the
integration of power, service and information,
communications technology company
Huawei has said. The company said in a report
that traditional energy consumption methods
were expensive and inefficient and could no
longer meet contemporary requirements. It,
however, said a new era of information and
communications technology was emerging,
offering a plethora of technologies that could
be harnessed and combining the power of the
internet and the energy revolution to connect
all energy resources.
The report stated: “Future electric
power systems must utilise advanced ICT
technologies, including Big Data, as well as
the massive amounts of data accumulated by
various modules within the power systems.
Power utilities must integrate various
modules, including production, distribution,
consumption, and storage, from the system
lifecycle perspective to form global system
solutions. These systems must learn, adapt,
and evolve by themselves. Only by achieving
these objectives are power utilities able to
provide clean and economical electricity
while striking a balance between demand and
supply.”
The company said it proposed the idea
of a better connected grid, adding that since
then, it had been committed to applying
leading ICT technologies in the electric power
industry and helping the industry resolve
problems that occur during its evolution.
PUNCHNG.COM (NIGERIA), May 8, 2016
Nigerian power firms begin
nationwide disconnections
Nigeria’s 11 electricity distribution companies
have announced plans to begin a nationwide
disconnection of historical debtors made
up mainly of government ministries,
departments and agencies (MDAs) whose
collective debts now stand in excess of 78
billion naira (US$391.4 million) by the end
of April, this year. This was disclosed at the
weekend in Abuja by the executive director
of research and advocacy at the Association
of Nigerian Electricity Distributors (ANED)
Sunday Oduntan.
Briefing journalists on the updates of
their operations and the challenges they face,
Oduntan said that by the end of April, 2016,
MDAs’ debts stood at a total of 78.6 billion
naira with the military being the highest
debtor at 38.7 billion naira.
LEADERSHIP (NIGERIA), May 9, 2016
Eight NIPP plants ready to
generate 2,000 MW
The Niger Delta Power Holding Company
(NDPHC), operators of the National
Integrated Power Project (NIPP), has
presented the status report on its generation,
distribution and transmission projects, saying
eight out of 10 NIPP power plants are ready to
generate over 2,000 MW as soon as vandalised
gas processing projects are completed by the
associated nominated gas suppliers.
The company has also stated that though
power generation is often disrupted by acts of
vandalism, it does not offer such incidences
as excuses as it has continued to operate these
power plants in the interest of the Nigerian
economy, despite undesirable security
challenges and an accumulated debt of over
94 billion naira owed it by the electricity
market. This is coming as the 11 electricity
distribution companies have agreed to submit
their 2013, 2014 and 2015 audited accounts
to the Nigerian Electricity Regulatory
Commission (NERC).
THIS DAY (NIGERIA), May 11, 2016
SADC to commission 3,059
MW of power capacity in
2016
The Southern African Development
Community (SADC) aims to commission
new power projects that will add 3,059 MW
of electricity this year as the region targets
to ensure that it meets its energy needs by
2020. According to the Southern African
Power Pool (SAPP), which co-ordinates the
planning, generation and transmission of
electricity on behalf of member state utilities,
the majority of the new power this year is
expected to come from South Africa.
At least three power generation projects
with a combined output of 1,624MW will
be commissioned in South Africa. Another
significant contribution is expected to come
from Zambia, which is due to add 300 MW.
Angola, which is yet to be linked to the
regional grid, will contribute 780 MW. Of
the new energy generation projects planned
for commissioning this year, only 2,269 MW
will be added to the regional grid since the

AfrElecAfrElec
Southern African Development Community
(SADC) is not yet fully integrated in terms of
energy trading.
All mainland SADC countries, with
the exception of Angola, Malawi and the
Tanzania, are interconnected through SAPP
regional grid, allowing them to share surplus
energy. New generation capacity installed in
any of the three non-participating countries
is not accessible to the nine other members of
SAPP – Botswana, Congo-Kinshasa, Lesotho,
Mozambique, Namibia, Swaziland, South
Africa, Zambia and Zimbabwe.
HERALD.CO.ZW (ZIMBABWE), May 9, 2016
S U P P LY
Benin to increase power
generation capacity to 352
MW by 2018
The government of Benin plans to increase
the country’s electricity generation capacity to
352 MWh by the end of 2018. According to an
official release, the decision aims to solve the
electricity shortage and end the constant load
shedding in the country. A large programme
purposed to eliminate load shedding by the
end of 2016 has been set up, as well as one to
improve energy sufficiency in two years, the
source said.
The plan includes acquiring mobile power
stations for additional capacities and the
rehabilitation of power plants of the Beninese
Electric Power Company. It also includes the
installation of photovoltaic power stations
that will produce 45 MWh, according to the
release. The country plans to install a 120-
MW thermal power station, which will be
financed by the Islamic Development Bank
(IDB) and the West African Development
Bank (BOAD).
Further, from December 2018,
independent power producers will provide
120 MWh from the Maria Gleta thermal
power station in centre Benin.
XINHUA (CHINA), May 7, 2016
Egypt aims to reach an
electricity surplus of 25%
Egyptian Minister of Electricity and
Renewable Energy Mohamed Shaker said
that the energy sector seeks to achieve a
surplus of up to 25% in the coming period. He
added that the sector is working to promote
investments to increase energy generated
through building more power plants and
diversifying energy resources, including solar,
wind, coal, nuclear, and hydro power. Shaker
said the state was able to secure enough
electricity for all consumers last year and has
even reached a surplus in the current period.
“We are ready for the high demands of
summer,” he said. “There will not be any
blackouts this year.” Shaker noted that the
Ministry of Petroleum agreed to provide the
sector with the fuel necessary to run all power
plants until December.
DAILY NEWS EGYPT, May 10, 2016
Nampower to sign 200-MW
supply agreement with
Eskom
Nampower is finalising the bilateral
agreement with Eskom for a 200-MW power
supply, the company’s acting managing
director Kahenge Simson Haulofu has
said. “Any additional supplies that may be
requested will be negotiated as part of the day-
ahead market established under the Southern
African Power Pool, and can be sourced from
any utility which is prepared to sell energy
on a non-firm basis, and as mentioned, it is a
day-ahead contract only,” Haulofu said.
The power utility is also on the verge
of concluding an agreement with a private
company for the supply of 44 MW from
wind power at Luderitz. He also disclosed
that a tender for a 37-MW renewable energy
plant in the Hardap region will be issued in
three weeks’ time. In terms of energy-saving
measures, Haulofu said 300,000 energy-saving
bulbs ordered by the company have arrived in
the country.
“300,000 LED bulbs have already been
purchased and are stored in Windhoek,
awaiting the appointment of the LED
champions (companies) to install these into
the customers’ homes. In total, 1 million
bulbs will be ordered. The bulbs are supplied
via local agents, are manufactured by Philips
in China and delivered through the Philips
offices in South Africa,” he explained.
NAMIBIAN.COM.NA (NAMIBIA), May 4, 2016
Nigeria unveils roadmap to
boost power generation
Nigerian Minister of Power, Works and
Housing Babatunde Fashola has unveiled the
federal government’s roadmap for boosting
electricity generation through incremental
power, saying that the government is looking
at what the country could generate out of the
existing power assets. The minister stated that
the country has 26 power plants, with three
powered by water in Jebba, Kainji and Shiroro,
while the rest of the plants are powered by gas.
According to him, the country has 140
turbines with installed capacity of 12,341 MW,
adding however that at the best of times, only
about 78 turbines generate power, which had
resulted in February 2, 2016 peak of 5,074
MW. “The problems have been identified as
N E W S I N B R I E F

AfrElecAfrElec
either damaged, unmaintained or unserviced
turbines in the hydropower plants, and in the
cases of gas plants, it is largely non-availability
of gas, coupled with lack of maintenance.”
Fashola said the Jebba Hydropower
plant, which was commissioned in 1985
by President Muhammadu Buhari with six
turbines to provide 540 MW of power, was to
be overhauled once every five to six years but
this was never done for 28 years, until it was
handed over in 2013, in the aftermath of the
privatisation.
According to him, the first overhaul
has now been completed and more will
be undertaken and described this effort as
incremental power. Fashola also noted that
in a report recently submitted to his office by
the concessionaire of Jebba and Kainji, the
total available capacity of the two plants is 482
MW and 340 MW, respectively, totalling 822
MW. He described the plan by the investors
to boost the generation to 1,338 MW as
incremental power.
THISDAYLIVE.COM (NIGERIA), May 8, 2016
Umeme and Tanesco owed
for electricity bills
According to the Daily Monitor, government
owes electricity distributor Umeme 64.17
billion shilllings (US$19.2 million) for power
used by some departments. Umeme’s media
manager, Stephen Ilungole, has confirmed
the claims to local media; however, he
stated that due to client confidentiality, he
wasn’t in a position to supply further details.
“Unfortunately, customer information and
transactions remain confidential for both
government entities and any other customers.
As a matter of policy, we don’t discuss
customer issues publicly,” Ilungole explained.
According to the media, it is public knowledge
that over the last three years, the amount the
government departments owe the distributor
has fluctuated between 89.5 billion shillings
(US$2.68 million) in 2013, 116 billion
shillings (US$3.47 million) in 2014 and then
64.17 billion shillings (US$19.2 million) in
2015. The media further reported that the
departments that owe Umeme the highest
amount of money are the Department of
Defence 29 billion shillings (US$8.7 million)
and the Health ministries 4.3 billion shillings
(US$1.28 million), the Uganda Police Force
12 billion shillings (US$3.5 million), Uganda
Prisons Service 9 billion shillings (US$2.7
million), Mulago National Referral Hospital
1.4 billion shillings (US$4.2 million) and
Uganda Broadcasting Corporation 2.2 billion
shillings (US$6.7 million).
ESI AFRICA (SOUTH AFRICA), May 9, 2016
Zambia to be power
exporter in 18 months
Zambian President Edgar Lungu said his
country is on course to transform the current
power deficit into a surplus and make the
country a net exporter of energy within 18
months. The head of state said this when he
commissioned a US$200-million, 100-MW
solar photovoltaic (PV) power project at
Lusaka South Multi-facility Economic Zone
(MFEZ). This was the first phase of the 600-
MW solar project to be implemented at a total
cost of US$1.2 billion.
The president said he had directed the
Industrial Development Corporation (IDC)
to drive the urgent installation of at least 600-
MW of solar power in order to redress the
current power deficit in Zambia.
“This is a proud moment for us in
government and IDC in particular because
when we say we have embarked on a credible
diversification programme across various
sectors we mean just that,” President Lungu
said. The head of state said the project would
be implemented through the Scaling Solar
Programme and was the country’s first PV
independent power project.
President Lungu said the project was a
practical demonstration of the government’s
resolve to create a diversified energy sector.
“The difficult realities of climate change have
taught us that over-reliance on hydropower
won’t just do. I am here to promise you that
we shall continue to walk-the-talk in every
way possible,” President Lungu said.
Zambia is the first country in Africa to
implement the Scaling Solar model and the
projects are aimed at providing competitively
priced, clean power that will reduce Zambia’s
dependence on hydro resources.
TIMES.CO.ZM (ZAMBIA), May 8, 2016
T H E R M A L
Oando to sell gas to power
plants in Nigeria
Oando Gas Power (OGP), a fully-
owned entity of Oando, has announced
the commencement of the development
of a mini LNG facility through its Transit
Gas Nigeria subsidiary in Ajaokuta, Kogi
State in Nigeria. According to the company,
the 20-mcf-per-day liquefaction plant is
primarily directed towards fulfilling the gas
supply requirement for captive power plants,
embedded generation and industrial clusters
in the northern region, as well as stranded
customers in the south.
Off-takers, particularly, power plants
and industrial customers who currently
utilise liquid fuels such as diesel and LPFO,
it noted, would be able to lower energy costs
by up to 40%, while significantly decreasing
carbon emissions. Commenting on the
initiative, OGP CEO Bolaji Osunsanya said:
“The establishment of the Ajaokuta mini
LNG project is in firm alignment with our
mid-to-long term gas conversion strategy.
This venture further emphasises our push to
broaden our asset portfolio and strengthen
our market play within the gas sector; and by
providing the gas advantage, we will help spur
the development of self-sustaining industrial
clusters to bolster the country’s socio-
economic growth.”
PUNCHNG.COM (NIGERIA), May 10, 2016

AfrElecAfrElec
C O A L
Coal of Africa settles
dispute with Rio and Kwezi
Coal of Africa (CoAL) said that it had settled
its dispute with Rio Tinto and Kwezi Mining
over the remaining sum owed by its subsidiary
MbeuYashu for the Chapudi coal assets,
part of the Greater Soutpansberg Project in
Limpopo, South Africa. CoAL said it had
agreed to increase the minimum monthly
payments from US$100,000 to US$650,000,
as well as making additional lump sum
payments with full and final settlement of the
outstanding purchase price by June 15 next
year.
The original deal, agreed on in 2012,
was for US$75 million, of which US$30
million was to be settled by way of deferred
consideration payments. CoAL said it had
settled approximately US$11.2 million of the
deferred consideration. CoAL chief executive
David Brown said: “This was the last of the
historic liability issues and this agreement
provides certainty of outcome, as well as
providing CoAL with flexibility.”
IOL.CO.ZA (SOUTH AFRICA), May 5, 2016
Tanzania’s CAG seeks
review of state stake in
coal JVs
Tanzanian Controller and Auditor General
(CAG) Mussa Assad has recommended
changes in the percentage ownership in the
over 4.8-trillion-Kenya-shilling (US$46.69-
billion) project involving extraction and
exploration of coal mines and iron ores
at Mchuchuma and Liganga in southern
Tanzania. Such changes, according to
his report presented before the National
Assembly in Dodoma recently, would reflect
the value of mineral resources used to secure
the loan under which the project is being
financed at US$2.4 billion.
A review of agreement revealed Hongda
Sichuan (Group), a private partner
with a US$600-million equity towards
implementation of the project, owned 80%
shares of the Tanzania China International
Mineral Resources Limited (TCIMRL),
while National Development Corporation
(NDC) owns 20%. “We are of the opinion
that share distribution comes with financial
responsibilities. Thus, if a loan is to be secured
against Tanzanian resources, NDC, on behalf
of the government, should have become
TCIMRL majority shareholder,” Assad
suggested.
The CAG also advised that the
management of NDC, in the alternative to
change share ownership, should assess the
possibilities of ensuring that the government
stake in the Tanzania China International
Mineral Resources Limited (TCIMRL) is not
at risk. He stated that to achieve such goal, the
NDC management should have negotiations
with the private sector partner to secure the
debt financing other than the mining rights of
the project as suggested in the contract.
ALLAFRICA.COM (SOUTH AFRICA), May 9, 2016
N U C L E A R
11 African countries
consider nuclear power
projects
11 African countries are considering building
nuclear power plants over the next 14 years to
overcome the continent’s extreme electricity
shortage. Outside South Africa, the entire
installed generation capacity of Sub-Saharan
Africa was now just 28 GW, said director of
the Centre for Energy and Security Studies
Anton Khlopkov. He said that only 24% of the
population of sub-Saharan Africa now had
access to electricity and even where electricity
was connected, it was unreliable. “As a result,
firms lose 6% of sales revenue. Where back-up
generation is limited, losses can be as high as
20%,” he said.
Khlopkov said before the Fukushima
nuclear disaster in Japan five years ago, more
than 60 countries worldwide were considering
constructing nuclear power plants. Even
today, over 45 countries were still actively
considering embarking on nuclear power
programmes. In Africa, the countries are
Algeria, Egypt, Ghana, Kenya, Morocco,
Namibia, Nigeria, Senegal, Tanzania, Tunisia
and Uganda. So far, in Africa, only South
Africa is producing nuclear power, with its
two reactors at Koeberg contributing 5% of
the country’s energy mix.
But there are also five nuclear research
reactors in Africa, two in Algeria and one
each in Egypt, Morocco and South Africa.
There were also two other nuclear research
installations, in Nigeria and Libya. Four
African countries also produce uranium,
Malawi, Namibia, Niger and South Africa,
contributing 15% of global production in
2014.
SABC.CO.ZA (SOUTH AFRICA), May 5, 2016
H Y D R O
Nigeria tasks hydropower
stations on stable power
supply
Nigeria’s Minister of Power, Works and
Housing, Mr Babatunde Fashola, has asked
Hydro-power stations in Nigeria to ensure
stable power supply. Fashola made the
request at a meeting held in Shiroro, Niger
State, with the owners of the hydro-power
stations across Nigeria. At the fifth monthly
meeting attended by participants across all

AfrElecAfrElec
the hydro-power stations and distributions
in Nigeria, the owners of the facilities were
asked to make concrete decisions in their
various stations to sustain the capacity of their
stations and boost distribution. He advised
the hydro-power stations and distribution
companies to form clusters and stop waiting
for the government to resolve their issues of
interest. Fashola further stressed the need
for them to hold meetings constantly and
take leadership into their hands in decision
making. The Minister applauded the Niger
State government for its proactive support
and understanding on community issues that
were slowing down works at the Zungeru dam
project. The Executive Director of Research
and Advocacy with Association of Nigerian
Electricity Distributors, Sunday Oduntan, told
the meeting that the company inherited over
5 million deficit non-metred customers from
6.159 million estimated metre customers in
the entire country.
CHANNELSTV.COM (NIGERIA), May 10, 2016
DR Congo to select Inga 3
developer by Oct
Democratic Republic of Congo (DRC) will
decide by October between a Chinese and
a Spanish consortium to develop the long-
delayed Inga 3 hydroelectric project, with
construction expected to begin the following
June, a government official said. The US$12-
billion project along the Congo River will
expand on two existing Inga hydroelectric
dams and is part of an eight-stage Grand Inga
project that would produce a record 44,000
MW at an estimated cost of US$50-80 billion.
Proponents of the project say it could
eventually power half of Africa, while
critics say the money would be better
used supporting smaller local plants. The
Chinese consortium is led by China Three
Gorges Corporation, while the Spanish one
includes engineering giant Actividades de
Construccion y Servicios, said Agency for
the Development and Promotion of Grand
Inga head Bruno Kapandji, the of the. “We
are waiting for their bids in the month of
July,” Kapandji said. “We will choose the one
that will be the best in terms of experience,
capacity to mobilise funds, capacity to
mobilise technology.”
Of Inga 3’s 4,800 MW, 2,500 MW will
be sold to SA, with 1,300 MW earmarked
for the DRC’s mining sector. The remaining
1,000 MW will go toward meeting domestic
demand in a country where less than 15%
of the population has electricity. The start of
construction has been repeatedly delayed by
red tape and disagreements between the DRC
and its partners on the project, including the
World Bank and African Development Bank,
which have provided technical assistance.
REUTERS (SOUTH AFRICA), May 10, 2016
R E N E WA B L E S
Scatec Solar to invest
US$650m in solar in Egypt
Scatec Solar company seeks to pump US$650
million in renewable energy investments to
establish five solar energy projects with a
capacity of 250 MW in Egypt, according to
the company’s CEO, Raymond Carlsen. “The
company will launch three solar energy plants
in Banban area in Aswan with a capacity
of 150 MW. The company will construct a
50-MW plant, as well as participating in the
establishment of two solar energy projects
with a capacity of 100 MW with a number of
companies that have qualified for the feed-in
tariff projects,” he said.“Scatec Solar agreed
with two companies to participate in two solar
energy plants in Zafarana with a capacity of
100 MW, adding that they agreed to carry out
the engineering, preparation, construction,
operation, and maintenance work through
combining resources. The total investments
in the five projects are estimated at US$650
million.” the CEO added. The solar energy
company has reached a deal with seven
different banks to finance 75% of the five
projects to be implemented in Banban area
and Zafarana, including the International
Finance Corporation (IFC) and European
Bank for Reconstruction and Development
(EBRD).
DAILYNEWSEGYPT.COM (EGYPT), May 9, 2016
Egypt to prioritise push for
renewable energy
The Egyptian government is implementing its
strategy for making energy mixture through
lowering its use of fossil fuel and traditional
energy sources. Chairman of Egypt’s New
and Renewable Energy Authority (NREA)
Mohamed Salah El Sobky said that renewable
energy projects are set to represent a short-
term core for Egypt’s economic development
since energy is the key factor in all industries
and projects that will be executed within
the upcoming period. The chairman said
that a lot of states depended on diversifying
energy sources and its renewable ones to
avoid the crisis that traditional sources cause.
Renewable energy is one of the prominent
sectors in Egypt that can address the growing
consumption of electricity backed by solar
and wind powers, he said. Accordingly, the
Egyptian government works on diversifying
power sources, whether the fossil fuel or
available water resources, building a number
of nuclear plants for generating power besides
developing and spreading usage of renewable
energy sources, El Sobky added.
UTILITIES-ME.COM, May 9, 2016
Phase 2 of Zambian solar
power project starts
President Edgar Lungu has announced
commencement of the second round of the
Zambia Scaling Solar programme targeting
a further 200 MW of solar photovoltaic (PV)
power projects. The solar project will be
implemented by the Industrial Development
Corporation (IDC). On May 7, the Head of
State launched construction of the 100 MW
under the first round of the Zambia Scaling
Programme at the Lusaka South Multi-Facility
Economic Zone (MFEZ).
President Lungu said this would form
part of the 600 MW solar power project to be
implemented at a total cost of US$1.2 billion.
He said in Lusaka recently that subsequent
rounds would be spread across Zambia until
the entire 600 MW was procured using the
World Bank Scaling Solar Initiative.
TIMES OF ZAMBIA (ZAMBIA), May 9, 2016

AfrElecAfrElec O U R C U S T O M E R S
MexicoDeepwaterSpecialReport
2016 £440
Buy today for exclsuive insight on the
following and much more:
™™ Deep impactData on the blocks being offered in Mexico’s first deepwater
bid round have reportedly made the majors “drool”. We
analyse the acreage that could attract capex of up to US$44bn.
™™ Sweetened termsThe bid rules for the ten deepwater blocks on offer will be less
stringent than previous auctions. The regulator provided us
with essential details for bidders.
™™ Pemex participationInternational oil companies may look to partner with Pemex,
which has said that it will participate in the deepwater bid
round. We look at the risks and rewards of such a strategy.
™™ Local knowledgeOperators are positive about Mexico’s flexible local content
requirements. We find out why and how the country has
learned lessons from Brazil’s mistakes.
To find buy the report, click here or visit:
shop.newsbase.com

NEWSBASE
v
If you are interested in your company’s logo appearing on this page, please contact your Customer
Accounts Manager on +44 131 478 7000.
Our customers include...

AfrElec Week 18, Issue 53

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (19)

Similar to AfrElec Week 18, Issue 53

Similar to AfrElec Week 18, Issue 53 (20)

Recently uploaded

Recently uploaded (20)

AfrElec Week 18, Issue 53