PIDA Rolling-Out the PAP 17th UPDEA Congress, Tunisia Dr. J. Moulot AfDB, dept. ONRI

Overview of Presentation PIDA Priority Action Plan 1 Projects synopsis 2 Implementation Issues 3

PAP-Energy Investment Cost: $40.3 bn Inga Hydro Phase 1 6,000 ECCAS Central Central African Interconnection 10,500 Great Millennium Renaissance Dam 8,000 COMESA/ IGAD Eastern Batoka Dam 2,800 COMESA EAC Ruzizi III Dam 450 Rusumo Falls Dam 360 Uganda-Kenya Petroleum Products Pipeline 150 North Africa Transmission 1,200 AMU Northern Nigeria -Algeria Pipeline N/A UMA ECOWAS Northern, Western North South Power Transmission Corridor COMESA EAC SADC IGAD Southern Nphamda -Nkuwa Dam 2,400 SADC Lesotho HWP Phase II -hydropower component 800 Sambagalou Dam 300 ECOWAS Western West African Power Transmission Corridor Kaleta Dam II 179

PAP vs. Regions and Project Types

PIDA Priority Action Plan 2020 Energy 15 items USD 40 bn 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. PIDA Priority Action Plan 2020

Overview of Presentation PIDA Priority Action Plan 1 Projects synopsis 2 Implementation Issues 3

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

NORTH SOUTH POWER TRANSMISSION CORRIDOR Cost (Million USD) 6,000 REC Involved COMESA/EAC/SADC/IGAD Beneficiary countries Kenya, Ethiopia, Tanzania, Malawi, Mozambique, Zambia, Zimbabwe, South Africa Technical Organizations 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 Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

NPHAMDA – NKUWA HP-DAM Cost (Million USD) 2,400 REC Involved SADC Beneficiary countries Mozambique, Zambezi basin Technical Organizations 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 Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

LESOTHO HWP PHASE II - HYDROPOWER COMPONENT Cost (Million USD) 2,400 REC Involved SADC Beneficiary countries Lesotho, South Africa, Orange-Senqu River Basin Technical Organizations Lesotho Highlands Water Commission, SAPP Objectives IWRM 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. Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

INGA- HYDROPOWER PHASE 1 Cost (Million USD) 6,000 REC Involved ECCAS Beneficiary countries DRC, Congo River Countries Technical Organizations CAPP Objectives Contribute 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 Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

CENTRAL AFRICAN INTERCONNECTION Cost (Million USD) 10,500 REC Involved ECCAS Beneficiary countries South Africa, Angola, Gabon, Namibia, Ethiopia Technical Organizations CAPP Objectives Develop 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 Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

SAMBAGALOU HP DAM Cost (Million USD) 300 REC Involved ECOWAS Beneficiary countries Senegal, OMVG countries (Senegal, Guinea, Guinea Bissau, Gambia) Technical Organizations 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   Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

WEST AFRICAN POWER TRANSMISSION CORRIDOR Cost (Million USD) 1,200 REC Involved ECOWAS Beneficiary countries Guinea,Guinea Bissau, Gambia, Sierra Leone, Liberia, Côte d’ivoire, Ghana Technical Organizations WAPP, OMVS Objectives Ensure 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 Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

NORTH AFRICA TRANSMISSION Cost (Million USD) 1,200 REC Involved UMA Beneficiary countries Morocco, Algeria, Tunisia, Libya, Egypt Technical Organizations COMELEC Objectives Ensure 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 Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

BATOKA GORGE HP DAM Cost (Million USD) 2800 REC Involved COMESA/EAC Beneficiary countries Zambia/Zimbabwe Zambezi basin Technical Organizations EAPP/ Zambesi River Authority Objectives To 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 Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

RUZZIZI III Cost (Million USD) 450 REC Involved COMESA/EAC Beneficiary countries Rwanda/DRC Technical Organizations CEPGL, EGL Objectives Share 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 Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

RUSUMO FALLS Cost (Million USD) 360 REC Involved COMESA/EAC Beneficiary countries Nile River Basin Countries Technical Organizations NELSAP Objectives Provide 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 Issues: Updated Status of Project; Roles of Utility, RECs and Power Pool

Overview of Presentation PIDA Priority Action Plan 1 Projects synopsis 2 Implementation Issues 3

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…

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