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The Democratic Republic of the Congo Fixes October 2015 as the Date for the Launch of the First Phase of the Largest Hydroelectric Plant in the World

Geschrieben am 18-05-2013

Paris (ots/PRNewswire) -

Following the initialling of an energy cooperation treaty between
the Democratic Republic of the Congo and the Republic of South Africa
on 7 March 2013, the DRC has now re-launched the process for the
selection of a developer and established the objective of laying the
first foundation stone for the Grand Inga project in October 2015.

(Logo: http://photos.prnewswire.com/prnh/20130518/613896 )

The first phase of construction of the world's largest
hydroelectric plant will start in October 2015 on the banks of the
Congo River. With a power output of almost 40,000 MW, the Grand Inda
project is expected to bring electricity to half of the African
continent.

At a meeting in Paris on 18 May 2013 organised by the government
of the Democratic Republic of the Congo, in the presence of a high
level delegation from the Republic of South Africa, all of the
stakeholders participated in a consultation process regarding the
implementation of the first phase of the project, Inga 3, with a
power output of almost 4,800 KW.

The meeting, held under the auspices of Mr. Bruno Kapandji Kalala,
Minister of Water Resources and Electricity of the Democratic
Republic of the Congo, brought together the principal financial
institutions, the candidates for the role of project developer, as
well as technical, financial and legal advisors and experts.

The aim of the meeting was to permit discussion with the project's
key stakeholders of the main issues facing the project (the selection
process, the perimeter, technical definition options, structuring,
financing) with a view to determining how each partner might be
involved. "All these exchanges served to clear various obstacles so
that the development of Inga 3 can begin," said Minister Bruno
Kapandji Kalala.

The cooperation agreement between the DRC and the RSA is critical
and at the center of the project

Highlight of the discussions: the historic treaty between the
Democratic Republic of the Congo and the Republic of South Africa
that was initialled on 7 March 2013 in Lubumbashi. This initialling
which confirmed cooperation on energy matters between the two states
is a major milestone for Grand Inga. By way of these cooperative
arrangements, the Republic of South Africa expects to purchase a
significant share of the electricity production of the new dam, thus
confirming itself as a key partner.

As such, the Republic of South Africa will take 2,500 MW of the
4,800 MW of future power production of Inga 3, thereby becoming the
principal purchaser. "We have affirmed our commitment to the project
by already provisioning for this purchase in our budgetary plan,"
says Garrith Bezuidenhoudt, Chief of Staff of the Ministry of Energy
of the Republic of South Africa.

A project in line with the Program for Infrastructure Development
in Africa

Inga 3 is expected to fill the power gap in the Democratic
Republic of the Congo, to meet the growing needs of the country's
population and industries, particularly mining, and to meet demand in
South Africa. To this first phase will be added subsequent steps that
will permit countries in Southern Africa, the North East of the
Continent and parts of West Africa, to benefit from the production of
the site.

However, the issues surrounding the transportation of the energy
and levels of connectivity have yet to be addressed. "Inga is a
factor for integration, at both a regional and international level,"
says Minister Bruno Kapandji Kalala.

As such, the project is in line with the Programme for
Infrastructure Development in Africa (PIDA), a joint initiative of
the African Union, the New Partnership for Africa's Development
(NEPAD), and the African Development Bank. It provides for the
implementation of regional projects in the sectors of transport,
energy, information technology and communication (ICT) and management
of cross-border water resources (GRET). Grand Inga will thus provide
more than half of the continent with renewable energy at a low price.

A public/private partnership (PPP) structure

Along with the two national partners, the rise of major financial
actors has rendered possible the project that had been conceived at
the beginning of the 1970s.

The Africa Development Bank has been involved in the project since
2009 and is financing the base studies and consultants. It has been
joined by the World Bank, the French Development Agency, the European
Investment Bank and the Development Bank of Southern Africa.

Three consortia are involved in the project as candidates in the
competitive selection process for the role of developer: Sinohydro
and Three Gorges Corporation from China - the operator of the Three
Gorges Chinese dam, currently the world's largest; Actividades de
Construccion y Servicios (ACS), Eurofinsa and AEE from Spain; and the
Daewoo-Posco-SNC Lavalin consortium from Korea and Canada.

A consortium comprising the American law firm Orrick, Herrington &
Sutcliffe; the investment banks Lazard Freres and Tractebel
Engineering, the engineering consultancy of GDF Suez, is assisting
the Government of the Democratic Republic of the Congo on the
management and implementation of the project.

"The question of financing is a major issue in the selection
process. It is the public/private partnership financing solutions
which will be vital for the success of the project", says Mrs Hela
Cheikhrouhou, Director for Energy Environment and Climate Change
Department at the African Development Bank.

A technique that takes into account social and environmental
impact The first phase of Grand Inga, Inga 3 Low-Head, will provide
4,800 MW. The environmental and social impact study shows that this
phase has no impact on the population. They will not be affected by
the flooded areas, which will remain relatively limited. The Inga 3
Low-Head will have no environmental impact on the flora and fauna of
this area of sparse savannah.

"The original aim of the technical feasibility study was to
structure the Grand Inga project in several plants," says Edouard
Dahome, Director for Africa at EDF, which, alongside the American and
French consultancies AECOM and Nodalis Conseil, conducted a
feasibility study for the project. A myth dreamed of for 40 years,
Grand Inga is becoming a reality with an action plan spread over
several plants which will be added in stages.

The Grand Inga site offers a combination of exceptional natural
features: the tributary zone of the Bundi to the Congo River has a
fall of 100 meters over approximately fifteen kilometers; with a rate
of 40 000 m3 / s. Inga 3 is divided into two phases. The first,
starting in 2015, is called Low-Head, located downstream. It does not
involve a dam on the river, but an intake from its tributary. These
conditions will produce electricity at a very attractive cost. The
second phase called Inga 3 High-Head, with a dam across the river and
the raising of the water retention of the Low-Head will add 3,000 MW
of capacity. After that, five other plants will be installed on the
same dam to provide a capacity of 40,000 MW.;

A hydroelectric installation already exists on the Congo River at
this level with dams Inga 1 and 2, two plants in operation since 1972
and 1982 respectively and a total capacity of nearly 1,800 MW.

Technical Fiche for Inga 3 Low-Head:

Production of Inga 3 Low-Head: 4,800 MW (ie the equivalent of the
production of four nuclear plants)

Of which, to be supplied to South Africa: 2500 MW

Estimated construction cost: USD 8.5 billion (value 2011)

Estimated total financing needs, including inflation and financial
costs: almost USD 12 billion

For further information, portraits, photos and interviews:

http://www.inga-hsavirtualpressroom.com


Press contacts:

Khatidja Kassam +33-6-11-07-15-18 - kkassam@le-public-systeme.fr
Catherine Dernis + 33-6-99-89-52-33 - cdernis@publicsystemehopscotch.com




Photo:
http://photos.prnewswire.com/prnh/20130518/613896


ots Originaltext: Democratic Republic of the Congo
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