pida project sheet

8/12/2019 PIDA Project Sheet

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Sambangalou

Sector: Energy

Project Number: PIDA / ENERGY / WEST-

ERN / N° 7

Sector: Generation

Project type: Physical-Greeneld

Development stage: Feasibility/Project

structure/promotion ( S2/S3); Construction

expected to start 2013; completion year:2017

REC Involved: ECOWAS

Beneciary countries: Senegal, Gambia,

Guinea-Bissau, Guinea-Conakry

Inter Governmental Organizations: AUC/

NPCA

Technical Organizations: WAPP, AfDB,

IDB, EBID

Objectives To provide power to the OMVG Member States

Expected

Results

128 MW of hydropower capacity, 930 km from themouth of the Gambia River to supply Senegal, Guinea,

Guinea Bissau and Gambia

Project

Technical

Information

• The project structure is still undecided. A PPPstructure was discussed. OMVG to take optionwhether to go for PPP or for a traditional public sec-

tor structure with IFI/suppliers credit nancing.• The project was initially designed to be coordinated

with the Kaleta project in Guinea, which wasenvisaged to be developed by OMVS.

• The political support at OMVG and WAPP level isstrong, by the commitment of the countries involved(Senegal, Guinea, Guinea Bissau, Gambia) waschanging over time.

• IRR:13.18, NPV$210m (with an oil barrel at $85)• Production costs:$1.8ct/kWh (for an oil barrel at

$108)• Total funding conrmed for entire OMVG project had

been $724m, form IDB, AfDB,EIB, OMVG membercountries

• 2 detailed SEIA in place by COTECO (Coyne etBellier, Tecsult et COBA) and OMVG

Background

Next Stage • An updated inter-governmental agreement is needed to conrm the status of the project andhow it will be coordinated with Kaleta which being implemented as a stand-alone Guinean proj-ect.

• The position of OMVG concerning the structuring of Sambangalou as a PPP could be claried,in consultation with donors who may indicate clearly where they envisage allocating their fundsfor regional integration of the energy systems in West Africa, between the regional transmissionsystem, which are inherently public sector and the generation capacities which can leverage

commercial nancing.• Non-conventional nancing could be explored in addition to bilateral and multilateral sources.• The issue of the creditworthiness of the power sector in Guinea Bissau, Guinea and The Gam-

bia will have to be addressed prior to the nalization of the project nancing structure. Senegalis in relatively better shape, and credit enhancement mechanisms will need to be put in place inSenegal as well.

Estimated cost $300.00m- $430.00m

Milestones

Funding Requirements

www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)



Nigeria - Algeria Pipeline

Sector: Energy

Project Number: PIDA / ENERGY /

NORTHERN-WESTERN / N°15

Sector: Transport

Type: Implementation and operation

REC Involved: UMA/ECOWAS

Beneciary countries: Nigeria, Niger, Algéria


NPCA

Technical Organizations: NNPC,

Sonatrach, National oil company of Niger

Republic

Objectives Objectives of the project are to diversify the exportroute of marketing Nigeria’s natural gas and engendercloser cooperation and integration among neighbouringcountries

Expected

Results

Operation of the pipeline with annual capacity up to 30billion cubic meters of natural gas with a diameter of1,220 to 1,420 mm.

Project

Technical

Information

• The PPP option is what Nigeria looks up to but it isnot easy to mobilize funds as much as $20bn for

instance for the gas pipeline project.• Firm commitment from all the States involved.• The security risks posed by the militants in the Niger

Delta region in

Background

Next Stage • Since 2010, the project has not advanced on thekey issues as a denitive decision on the route andcontractors, nancing and security.

Estimated

cost

Estimated at 20 000.

Milestones





North-South multi-modal Corridor

Sector: Transport

Project Number: PIDA / TRANSPORT /

EASTERN/ N° 6

Sector: Road/Rail Transport

Type: Feasibility/needs assessment

Program/project structuring and promotionto obtain nancing

REC Involved: COMESA/EAC/SADC

Beneciary countries: DRC, Zambia,

Zimbabwe, South Africa, Mozambique


NPCA

Technical Organizations: SARA

Overall and

Specic

Objectives

This project is designed to modernize the highestpriority multi-modal ARTIN corridor in Southern Africaand increase the ease of access for people and goodsacross the borders between South Africa, Botswana,Zimbabwe, Zambia, Malawi and DR Congo. It has fourmajor components (a) corridor modernization, includingmodern design standards, smart corridor technology,and OSBPs, (b) road modernization and upgrading, (c)railway modernization, and (d) rail construction. Tradebetween all these countries would also be increased.

ExpectedResults

This project would design and implement a smartcorridor system for both road and rail transport. Themodernization project would also facilitate the creationof 4 one-stop border posts at the following locations:

• Messina/Beit Bridge: OSBP Project – South Africa/Zimbabwe

• Kasumbalesa: OSBP Project – Zambia/DR Congo• Martin’s Drift: OSBP Project – South Africa/Botswana• Kazungula: OSBP and Bridge Project – Botswana/

Zambia/Namibia

The road modernization component includes the jointdevelopment of modern corridor highway standards be-

tween all six countries (with SADC/Tripartite lead), and

Background

the construction of key highway sections totalling 560 km to these higher standards. This projectalso includes a road upgrading component which would also total 950 km in the corridor (out of2,800 km total). The road upgrading and modernization activities are expected to be extended toother branches of the Corridor in a later phase.

Project Technical

Information

• There is a need to build close cooperation with Transnet for North-South rail corridor develop-

ment, including coordination of information systems. Establishing a smart corridor system andcoordinated rail information systems will require cooperative agreements between countries,ministries and railway operators as well as one-stop border posts. This will be a challenge, but

SADC is experienced in handling this type of coordination.

Next Stage • For the rail components of this project, SADC and SARA need to play a leading role in develop-

ing modern rail services in the region.• SADC needs to review the Consultants’ trafc forecasts along ARTIN corridors and prepare

alternative solutions depending on these forecasts and on the future location of port capacitydevelopment.

• These solutions need to be discussed with the member states, the national railways and railwayconcessionaires, and presented to potential private investors. SADC needs to also preparescenarios in which investment could be split between the relevant states (infrastructure) and the

private operators (communications, rolling stock, etc.). SADC needs to also attempt to nd ordevelop local private interests for the management and nancing of rail projects, through work-

shops, seminars, and possibly training sessions. In addition, implementation of clear priority railprojects for TAZARA, SNCC and Chingola-Solwezi needs to be undertaken with a regional railmodernization approach.

Milestones




Next Stage • For the smart corridor information system component, SADC, with the assistance of the UAC/NPCA, need to establish norms/standards and characteristics for a smart corridor informationsystem along the entire corridor. After review by SADC, this system needs to be designed andimplemented in the countries along the North-South corridor as a pilot project. SADC needsto contract for the design and implementation of the North-South corridor information system.Since this is a multi-modal corridor, the smart corridor system would have six modules: (i) singleelectronic window, (ii) cargo tracking, (iii) commercial vehicle tracking (including vehicle weight),(iv) container tracking, (v) freight train tracking and (vi) high-visibility corridor efciency monitor -

ing. This system would speed up regional integration, make African businesses more competi -tive and increase trade and tourism among all ve countries. This system would be integratedwith the railway management systems for Transnet and for the Zambian Railway (run by aconcessionaire) and SNCC in DR Congo.. This would contribute to making these railways muchmore competitive with road, leading to a more efcient use of the multi-modal freight system.(NRZ would be integrated at a later date.)

• At the same time for the PPP Pilot, SADC, through regional meetings with the member states,needs to agree on the sections of roads where the member states would accept the signing ofPPPs with private companies in the context of toll roads. SADC needs to also assess the levelof experience and preparedness of the member states to attract PPP and make recommenda-

tions as needed to establish an enabling environment in each state. Then a selection of a pro-

posed pilot PPP location would be made (e.g., Kata-Kazungula, which is designated a PPP roadupgrade).

• Once all the activities above are completed, SADC needs to organize meetings/working ses-

sions with private companies that might be potentially interested. The selected government andthe concerned ministry need to contract through PPP for upgrading of the pilot PPP road sectionand management and maintenance of a toll road.

Implementation in

Million USD

2 325





Dakar-Bamako-Niamey

Multi-modal Corridor

Sector: Energy


WESTERN / N° 13

Sector: Road Transport

Type: Program/project structuring and pro-

motion to obtain nancing

Implementation and operation

REC Involved: ECOWAS

Beneciary countries: Senegal, Mali,Burkina Faso, Niger


NPCA

Technical Organizations: -

Overall and

Specic

Objectives

This project is designed to modernize the highest prior -ity multi-modal corridor in West Africa and increase theease of access for people and goods across the borderbetween Senegal, Mali, Burkina Faso and Niger. Tradebetween Mauritania and Mali would also be increased.

Expected

Results

The rst phase of the project would concentrate onDakar-Bamako.and include the design and implemen-

tation of a smart corridor system for both road and railtransport. The modernization project would also createa one-stop border post at Kidira/Diboli on the Senegal-

Mali border.The road upgrading component includes the jointdevelopment of modern corridor highway standardsbetween Senegal and Mali (with ECOWAS lead), andthe construction of highway sections totalling 500 km tothese higher standards. This project would complementon-going road rehabilitation and upgrading projects.The road upgrading and modernization activities areexpected to be extended to the Bamako-Niamey part ofthe Dakar-Niamey Corridor in a later phase.

Project

TechnicalInformation

• The recently established committee needs to rapidly

be strengthened with the setting up of a permanentsecretariat

Background

• The concerned States and ECOWAS need to agree on the best ways to nance this secretariat.Presently, the Dakar-Bamako-Niamey corridor programme is primarily a series of road improve-

ments at national level with numerous nanciers. The layout and the characteristics of the roadsbeing upgraded or rehabilitated are not homogeneous and will not result in a modern regionalroad which would bypass key city centers. The road crosses four countries and requires fourmodern one stop border posts. The presently available nancing is not sufcient to complete allfour posts.

Next Stage • A corridor management committee has been recently established by UEMOA for this corridor. Inorder to manage the project, this committee needs to be strengthened and a permanent secre-

tariat established. This secretariat, in coordination with NPCA and/or the AfDB, needs to reviewbest practices worldwide for modern corridor highway design and for smart corridor informationsystems. It needs to then review all the road improvement projects proposed or on-going alongthe corridor and, when necessary, recommend modications in order to improve the overall char -acteristics, even if this might delay part of the implementation.

• The location of the OSBP needs to be agreed between the secretariat and the concernedStates. The Secretariat needs to take the initiative to seek agreement on and nancing for theseposts. OSBP planning and implementation needs to be coordinated with the West Africa BorderPosts project (WA4 below).

• This corridor might become one of the pilots for the smart corridor programme described above(CN3). Since this is a multi-modal corridor, the smart corridor system would have six modules:(i) single electronic window, (ii) cargo tracking, (iii) commercial vehicle tracking (including vehicleweight), (iv) container tracking, (v) freight train tracking and (vi) high-visibility corridor efciencymonitoring. This system would speed up regional integration, make African businesses morecompetitive and increase trade and tourism between Senegal and Mali. This system would be

Milestones




Next Stage integrated with the railway management system, which is run by a concessionaire. This wouldcontribute to making the railway much more competitive with road, leading to a more efcientuse of the multi-modal freight system.

Implementation in

Million USD

590





Kinshasa-Brazzaville Bridge Road and RailProject & Rail to Ilebo

Sector: Transport


CENTRAL / N° 19

Sector: Multimodal Transport


REC Involved: ECCAS

Beneciary countries: Congo/DRC


NPCA

Technical Organizations: -

Overall and

Specic

Objectives

This is a regional project linking the Republic of the

Congo with the Democratic Republic of the Congo in thePointe Noire-Lubumbashi corridor which also establish-

es a railway link between Central and Southern Africaacross the DR Congo. This railway would contribute toregional integration within Central Africa and betweenthe two regions and provide DR Congo with access to adeeper draft port at Pointe Noire. This project has Presi-dential and NEPAD support

Expected

Results

This project has ve components:

• the construction of a combined road and rail bridgeover the Congo River and

• construction and implementation of a one-stopborder post linked to the bridge (with inter-ministerialand cross-border coordination),

• the nal design of the railway (1,015 km) connectingKinshasa and Brazzaville to the existing rail line toLubumbashi from Ilebo,

• the construction of the railway and• creation of a modern railway operation with PPP.

Background

Project Technical

Information

• The bridge component is a very large project by itself with multiple aspects and will require spe-

cial expertise to manage and expert consultants to supervise the construction. ECCAS and bothgovernments need to ensure that this is in place prior to letting the contracts

• The railway component is also a very large project with multiple aspects and will require specialexpertise to manage and expert consultants. This will require an effective management unit inthe government of DR Congo with appropriate authority, which may be difcult to establish.

• Special expertise and institutional development will be needed to ensure that an adequate regu-

latory system is in place to regulate the new railway operation.• Also special expertise will be needed to structure PPP agreements for both the bridge and the

railway components and the bridge agreement will need the support of the governments of bothcountries. This may also be difcult to achieve, despite the fact that this is a Presidential project

Next Stage • There is currently a feasibility study and design document being prepared for this project underECCAS supervision and AfDB/AFD funding.

• ECCAS needs to continue to play a leading role in developing the nal design for the bridge,working with the AfDB and the Joint Technical Monitoring Committee formed for the project. Itneeds to also follow-up in organizing the bid documents for construction and arranging for po-

tential PPP participation in managing the bridge as a toll facility with private sector funding andmaintenance and operations management.

• Special efforts will be needed to ensure that the legal basis is in place to encourage PPP partici-pation.

• ECCAS needs to also lead in the establishment of the one-stop border post and related coordi-nation between countries, and the procurement of contractors for that component, which needsto be a separate contract from the bridge construction.

Milestones




Next Stage • Once a decision to build the bridge has been made, a supervision contract and a constructioncontract need to be let and a special unit formed by ECCAS to manage the project. This willrequire technical assistance to ensure sufcient expertise is available.

• The railway project will be primarily the responsibility of the DR Congo government, which hasalready formed a Railway Technical Committee (CTF) to oversee the pre-feasibility study cur -rently being undertaken with AfDB/ADF funding. ECCAS needs to continue to play a role in link-

ing the railway and the bridge projects.• The implementation of the railway component of the project is expected to take a PPP structure

with investment, operations and management provided from the private sector to complementDR Congo investment in construction. The structure of the agreement needs to be similar to thatfor the Rift Valley Railway in Kenya or a similar successful PPP rail project of this scale. This willrequire a special government unit to manage the process.

• A nancing plan needs to be developed for the railway, which would explore potential sourcessuch as regional development bonds as well as donor, private sector and domestic budget sup-

port.• The PPP plans for both components need to be supported by legal and institutional arrange-

ments to form an enabling environment that will attract active interest by the private sector. EC-

CAS and NPCA need to support the government in creating an appropriate environment.

Implementation in

Million USD

1650





Nphamda - Nkuwa

Sector: Energy


SOUTHERN / N° 3

Sector: Generation


REC Involved: SADC

Beneciary countries: Mozambique,Zambezi basin


NPCA

Technical Organizations: Mphanda NkuwaHydro-electric Company, SAPP

Objectives Export on the SAPP market

Expected

Results

Hydroelectric power plant with a capacity of 1,500 MW

Project

Technical

Information

• Completion of nancing plan. The Advisors to theproject Sponsor have not yet completed the nanc-

ing plan and project structure needs to be adaptedfor the project to present a risk prole attractive tocommercial nancing.

• Negotiation of off take agreements. The main is-

sues are (i) the reluctance of South Africa to enter in

off-take contracts in currencies other than the Rand,putting the foreign exchange risk on the project; and(ii) the reluctance of South Africa to enter into take or

pay capacity (rather than energy) off-take contracts.

Background

Next Stage • Explore risk mitigating instruments to attract commer -cial nancing; develop intermediation services fromIFIs to allow access of the project to exchange ratehedging instruments.

• Propose an “open book” structure to the developer to

allow access to nancing from IFIs permitted through

Milestones

the tendering of the main contracts and pass-through in the tariff of benets from open tenderingof some of the construction and supply contracts.

• Facilitate discussion to share hydrology risk between investors (through higher equity) and off-taker (through a capacity payment lower than project xed cost) and to match the duration ofoff-take contracts with nancing terms.

Implementation in

Million USD

2 400





Lesotho HWP Phase II -

hydropower Component

Sector: Energy


SOUTHERN / N° 4

Sector: Generation


REC Involved: SADC

Beneciary countries: Lesotho, South Africa, Orange-Senqu River Basin


NPCA

Technical Organizations: Lesotho High-

lands Water Commission, SAPP

Objectives The project is of strategic importance to the two coun-

tries in that it provides signicant royalty payments toLesotho (from SA) for the water transfer and ensuresthe water security of South Africa’s most importanteconomic region (Gauteng province) centered aroundJohannesburg and the capital city Pretoria.

Expected

Results

The Lesotho Highlands Water Project Phase II consistsof two separate components – a) the construction ofPolihali Dam and transfer to tunnel to Katse dam (whichwas built during Phase I of the project), and b) the Ko-

bong pump storage scheme hydro-electricity scheme.

Project

Challenges

• The Project follows the successful implementationof Phases I A and I B, except that the proposed1200MW pumped storage component presents anew dimension.

• Support Lesotho in advancing preparation for thepumped storage component, particularly in relationto nancing.

• Investigate the use of guarantees by internationalinstitutions such as Miga for the pumped storagecomponent.

Background

Next Stage • The preparation for the water transfer component is well advanced. The issuing of design andconstruction tenders is scheduled for July 2012 – January 2015. Construction of the supportinginfrastructure is scheduled to start from February 2014 and of construction of the dam and trans-

fer tunnel from January 2016.• The feasibility study for the proposed pumped storage scheme will only be completed in 2012

(nanced by the Sweden) and further detailed studies are only expected to start from January2013.

• In terms of the Treaty signed between the two governments, the Lesotho Highlands Develop-

ment Authority (LHDA) is a parastatal set up on the Lesotho side and charged with the imple-mentation operations and maintenance of the project within Lesotho whereas on the RSA side,the Trans-Caledon Tunnel Authority (TCTA) is mandated to do the same for that part of theproject taking place on the RSA territory.

• On 11 August 2011, the governments of Lesotho and South Africa signed the agreement toproceed with the Lesotho Highlands Water Project Phase II. It needs to be noted that Phase II isgeographically entirely located in Lesotho, however, the South African TCTA assumes responsi-bility for the storage and water transfer component of the project, whereas the LHDA assumesresponsibility for implementing the pump storage component of the project.

• In terms of the LHWP Treaty between South Africa and Lesotho, South Africa assumes respon-

sibility for the costs relating to the water transfer, and as such provides the guarantees requiredin support of funding for this component. Similarly Lesotho assumes responsibility for the costsof implementing the pumped storage scheme and raises the guarantees to support the securednancing facilities.

Implementation in

Million USD

2 400

Milestones





Inga Hydro Phase 1

Sector: Energy


CENTRAL / N° 5

Sector: Generation


REC Involved: ECCAS

Beneciary countries: DRC Congo RiverCountries


NPCA

Technical Organizations: CAPP

Objectives The project objective is to encourage the reliance on

local renewable energy and increase energy tradebetween DRC, Zambia and South Africa as well as DRCCongo Rover Countries.

Expected

Results

Develop 4,200 MW capacity run of river hydropowerstation on the Congo river with eight turbines.

Project

Challenges

• The structure for project development has not beenestablished yet, bearing in mind that to do this, req-

uisite capacities need to be built in both SNEL and

the Ministry of Energy to effectively play the role ofdeveloper.

• Cooperation framework between GODRC andpotential off-taker of power exports has not beenestablished yet and the project is being developedas a purely national project, and need for coordina-

tion with future institutional framework for Grand Ingadevelopment.

• Putting together a nancing package for a US$ 3billion (US$ 4 to 5 billion including contingencies andnancing costs) representing 38% of 2010 GDP

• Political risk of DRC

• Minimizing contingent liability on GODRC’s balancesheet

Background

Next Stage • Consider the option of establishing a SPV for the project as a preparatory phase for structuringit as a PPP allowing for coordination and interfacing with the envisaged structure for Grand Inga.Need to clarify the potential for exports from Inga 3 to allow structuring of the project contractualframework (domestic and/or international off-take PPAs), bearing in mind that a structure withsignicant off-take from creditworthy industrial or international entities (South Africa, Botswana,Namibia) will facilitate attracting nancing for the project.

• Support the integration of international expertise (in addition to the law rm nanced by ADB) inthe initial project development team in the GODRC to accelerate the development of a project

structure suitable for attracting commercial and IFI nancing under a PPP structure and proposea risk prole minimizing the DRC country risk.

• Inga 3 nancing structure will call on various sources of funds. It is clear that a nancing pack-

age can be assembled only if the project’s commercial risk is essentially transformed from aDRC risk to an export based industrial risk and to Inga power importing countries of good creditstanding, leaving the pure political risk with GODRC. The main consequence is that the projectwill need to be largely industry and export based.

Implementation in

Million USD

6 000

Milestones



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