Southern African Power Pool SESSION 3: OVERVIEW

Power Pool Members Angola Botswana Democratic Republic of Congo (DRC) Lesotho Malawi Mozambique Namibia South Africa Swaziland Tanzania Zambia Zimbabwe

Power Pool Overview (1) SAPP was set up in August 1995 Main objectives: Provide forum for the development of a world class, robust, safe, efficient, reliable and stable interconnected electrical system in Southern African region. Optimise the use of available energy resources in the Southern African region and support one another during emergencies. Key activities undertaken so far: Established the short-term energy market (STEM) in April 2001. Completed SAPP telecommunications study in 2001 with implementation of the recommendations following in 2005/6. Frequency relaxation project completed & implemented in 2003. Transmission wheeling tariffs implemented in phases from January 2003 to January 2006. Quality of supply database implementation in progress Interconnectors: Zimbabwe-Botswana-South Africa (1995), South Africa-Swaziland-Mozambique (2001), Mozambique-Zimbabwe (1997), Namibia-South Africa (2002), Namibia-Zambia (2006).

Power Pool Overview (2) Next key activities planned: Development and implementation of the SAPP competitive electricity market: Jan 2004 to Dec 2007. Transmission pricing policy, ancillary services market development and implementation procedures: May 2005 to Feb 2007. Development of a balancing mechanism: June 2007 Implementation of the SAPP priority generation & transmission projects: From Jan 2006

Upcoming Key Projects in the SAPP (I) Nr. Project name Country (ies) Type(1) Est. cost ($M) Est. Readiness 1 Malawi-Mozambique Interconnector 330kV Malawi and Mozambique TRANS US$ 90 Million March 2007 2 Itezhi-Tezhi [ 120MW ] Zambia HYD GEN US$ 142 Million March 2007 3 Kafue Gorge Lower [ 750MW ] Zambia HYD GEN US$ 600 Million June 2007 4 Inga 1 and 2 DRC REHAB US$452 Million Financing Gap Ready (1) Key: REHAB: rehabilitation and expansion project – HYD GEN: hydropower plant – GAS GEN: gas-fired generation project DIV GEN: other type of power plant – TRANS: transmission project – DIST: distribution project – OTHER: other type

Upcoming Key Projects in the SAPP (II) Nr. Project name Country (ies) Type(1) Est. cost ($M) Est. Readiness 5 Kariba North and South Extensions [360 + 300 MW] These are extension physically joined to the existing facilities. Zambia and Zimbabwe HYD GEN USD 500 Millions Ready 6 Zambia-Namibia-Zimbabwe 330kV Interconnector Namibia, Zambia and Zimbabwe TRANS US$ 200 Millions December 2007 7 Hwange Expansion [ 600 MW ] Zimbabwe DIV GEN US$ 500 Million Ready 8 Kudu [ 800 MW ] Namibia GAS GEN US$ 1,200 Millions Ready (1) Key: REHAB: rehabilitation and expansion project – HYD GEN: hydropower plant – GAS GEN: gas-fired generation project DIV GEN: other type of power plant – TRANS: transmission project – DIST: distribution project – OTHER: other type