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Sambangalou

Sector: Energy
Project Number: PIDA / ENERGY / WEST-
ERN / N 7
Sector: Generation
Project type: Physical-Greenfeld
Development stage: Feasibility/Project
structure/promotion ( S2/S3); Construction
expected to start 2013; completion year:
2017
REC Involved: ECOWAS
Benefciary 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 the
mouth of the Gambia River to supply Senegal, Guinea,
Guinea Bissau and Gambia
Project
Technical
Information
The project structure is still undecided. A PPP
structure was discussed. OMVG to take option
whether to go for PPP or for a traditional public sec-
tor structure with IFI/suppliers credit fnancing.
The project was initially designed to be coordinated
with the Kaleta project in Guinea, which was
envisaged to be developed by OMVS.
The political support at OMVG and WAPP level is
strong, by the commitment of the countries involved
(Senegal, Guinea, Guinea Bissau, Gambia) was
changing 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 confrmed for entire OMVG project had
been $724m, form IDB, AfDB,EIB, OMVG member
countries
2 detailed SEIA in place by COTECO (Coyne et
Bellier, Tecsult et COBA) and OMVG
Background
Next Stage An updated inter-governmental agreement is needed to confrm the status of the project and
how 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 clarifed,
in consultation with donors who may indicate clearly where they envisage allocating their funds
for regional integration of the energy systems in West Africa, between the regional transmission
system, which are inherently public sector and the generation capacities which can leverage
commercial fnancing.
Non-conventional fnancing 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 fnalization of the project fnancing structure. Senegal
is in relatively better shape, and credit enhancement mechanisms will need to be put in place in
Senegal 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 / N15
Sector: Transport
Type: Implementation and operation
REC Involved: UMA/ECOWAS
Benefciary countries: Nigeria, Niger,
Algria
Inter Governmental Organizations: AUC/
NPCA
Technical Organizations: NNPC,
Sonatrach, National oil company of Niger
Republic
Objectives Objectives of the project are to diversify the export
route of marketing Nigerias natural gas and engender
closer cooperation and integration among neighbouring
countries
Expected
Results
Operation of the pipeline with annual capacity up to 30
billion cubic meters of natural gas with a diameter of
1,220 to 1,420 mm.
Project
Technical
Information
The PPP option is what Nigeria looks up to but it is
not 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 the
key issues as a defnitive decision on the route and
contractors, fnancing and security.
Estimated
cost
Estimated at 20 000.
Milestones
Funding Requirements
www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)
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 promotion
to obtain fnancing
REC Involved: COMESA/EAC/SADC
Benefciary countries: DRC, Zambia,
Zimbabwe, South Africa, Mozambique
Inter Governmental Organizations: AUC/
NPCA
Technical Organizations: SARA
Overall and
Specifc
Objectives
This project is designed to modernize the highest
priority multi-modal ARTIN corridor in Southern Africa
and increase the ease of access for people and goods
across the borders between South Africa, Botswana,
Zimbabwe, Zambia, Malawi and DR Congo. It has four
major components (a) corridor modernization, including
modern design standards, smart corridor technology,
and OSBPs, (b) road modernization and upgrading, (c)
railway modernization, and (d) rail construction. Trade
between all these countries would also be increased.
Expected
Results
This project would design and implement a smart
corridor system for both road and rail transport. The
modernization project would also facilitate the creation
of 4 one-stop border posts at the following locations:
Messina/Beit Bridge: OSBP Project South Africa/
Zimbabwe
Kasumbalesa: OSBP Project Zambia/DR Congo
Martins Drift: OSBP Project South Africa/Botswana
Kazungula: OSBP and Bridge Project Botswana/
Zambia/Namibia
The road modernization component includes the joint
development 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 project
also includes a road upgrading component which would also total 950 km in the corridor (out of
2,800 km total). The road upgrading and modernization activities are expected to be extended to
other 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 and
coordinated 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 traffc forecasts along ARTIN corridors and prepare
alternative solutions depending on these forecasts and on the future location of port capacity
development.
These solutions need to be discussed with the member states, the national railways and railway
concessionaires, and presented to potential private investors. SADC needs to also prepare
scenarios 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 fnd or
develop local private interests for the management and fnancing of rail projects, through work-
shops, seminars, and possibly training sessions. In addition, implementation of clear priority rail
projects for TAZARA, SNCC and Chingola-Solwezi needs to be undertaken with a regional rail
modernization approach.
Milestones
www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)
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 information
system along the entire corridor. After review by SADC, this system needs to be designed and
implemented in the countries along the North-South corridor as a pilot project. SADC needs
to 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) single
electronic window, (ii) cargo tracking, (iii) commercial vehicle tracking (including vehicle weight),
(iv) container tracking, (v) freight train tracking and (vi) high-visibility corridor effciency monitor-
ing. This system would speed up regional integration, make African businesses more competi-
tive and increase trade and tourism among all fve countries. This system would be integrated
with the railway management systems for Transnet and for the Zambian Railway (run by a
concessionaire) and SNCC in DR Congo.. This would contribute to making these railways much
more competitive with road, leading to a more effcient 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 of
PPPs with private companies in the context of toll roads. SADC needs to also assess the level
of 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 road
upgrade).
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 and
the concerned ministry need to contract through PPP for upgrading of the pilot PPP road section
and management and maintenance of a toll road.
Implementation in
Million USD
2 325
Funding Requirements
www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)
Dakar-Bamako-Niamey
Multi-modal Corridor
Sector: Energy
Project Number: PIDA / TRANSPORT /
WESTERN / N 13
Sector: Road Transport
Type: Program/project structuring and pro-
motion to obtain fnancing
Implementation and operation
REC Involved: ECOWAS
Benefciary countries: Senegal, Mali,
Burkina Faso, Niger
Inter Governmental Organizations: AUC/
NPCA
Technical Organizations: -
Overall and
Specifc
Objectives
This project is designed to modernize the highest prior-
ity multi-modal corridor in West Africa and increase the
ease of access for people and goods across the border
between Senegal, Mali, Burkina Faso and Niger. Trade
between Mauritania and Mali would also be increased.
Expected
Results
The frst phase of the project would concentrate on
Dakar-Bamako.and include the design and implemen-
tation of a smart corridor system for both road and rail
transport. The modernization project would also create
a one-stop border post at Kidira/Diboli on the Senegal-
Mali border.
The road upgrading component includes the joint
development of modern corridor highway standards
between Senegal and Mali (with ECOWAS lead), and
the construction of highway sections totalling 500 km to
these higher standards. This project would complement
on-going road rehabilitation and upgrading projects.
The road upgrading and modernization activities are
expected to be extended to the Bamako-Niamey part of
the Dakar-Niamey Corridor in a later phase.
Project
Technical
Information
The recently established committee needs to rapidly
be strengthened with the setting up of a permanent
secretariat
Background
The concerned States and ECOWAS need to agree on the best ways to fnance this secretariat.
Presently, the Dakar-Bamako-Niamey corridor programme is primarily a series of road improve-
ments at national level with numerous fnanciers. The layout and the characteristics of the roads
being upgraded or rehabilitated are not homogeneous and will not result in a modern regional
road which would bypass key city centers. The road crosses four countries and requires four
modern one stop border posts. The presently available fnancing is not suffcient to complete all
four posts.
Next Stage A corridor management committee has been recently established by UEMOA for this corridor. In
order 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 review
best practices worldwide for modern corridor highway design and for smart corridor information
systems. It needs to then review all the road improvement projects proposed or on-going along
the corridor and, when necessary, recommend modifcations 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 concerned
States. The Secretariat needs to take the initiative to seek agreement on and fnancing for these
posts. OSBP planning and implementation needs to be coordinated with the West Africa Border
Posts 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 vehicle
weight), (iv) container tracking, (v) freight train tracking and (vi) high-visibility corridor effciency
monitoring. This system would speed up regional integration, make African businesses more
competitive and increase trade and tourism between Senegal and Mali. This system would be
Milestones
www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)
Next Stage integrated with the railway management system, which is run by a concessionaire. This would
contribute to making the railway much more competitive with road, leading to a more effcient
use of the multi-modal freight system.
Implementation in
Million USD
590
Funding Requirements
www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)
Kinshasa-Brazzaville Bridge Road and Rail
Project & Rail to Ilebo
Sector: Transport
Project Number: PIDA / TRANSPORT /
CENTRAL / N 19
Sector: Multimodal Transport
Type: Feasibility/needs assessment
REC Involved: ECCAS
Benefciary countries: Congo/DRC
Inter Governmental Organizations: AUC/
NPCA
Technical Organizations: -
Overall and
Specifc
Objectives
This is a regional project linking the Republic of the
Congo with the Democratic Republic of the Congo in the
Pointe Noire-Lubumbashi corridor which also establish-
es a railway link between Central and Southern Africa
across the DR Congo. This railway would contribute to
regional integration within Central Africa and between
the two regions and provide DR Congo with access to a
deeper draft port at Pointe Noire. This project has Presi-
dential and NEPAD support
Expected
Results
This project has fve components:
the construction of a combined road and rail bridge
over the Congo River and
construction and implementation of a one-stop
border post linked to the bridge (with inter-ministerial
and cross-border coordination),
the fnal design of the railway (1,015 km) connecting
Kinshasa and Brazzaville to the existing rail line to
Lubumbashi 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 both
governments 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 special
expertise to manage and expert consultants. This will require an effective management unit in
the government of DR Congo with appropriate authority, which may be diffcult 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 both
countries. This may also be diffcult 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 under
ECCAS supervision and AfDB/AFD funding.
ECCAS needs to continue to play a leading role in developing the fnal design for the bridge,
working with the AfDB and the Joint Technical Monitoring Committee formed for the project. It
needs 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 and
maintenance 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 needs
to be a separate contract from the bridge construction.
Milestones
www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)
Next Stage Once a decision to build the bridge has been made, a supervision contract and a construction
contract need to be let and a special unit formed by ECCAS to manage the project. This will
require technical assistance to ensure suffcient expertise is available.
The railway project will be primarily the responsibility of the DR Congo government, which has
already 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 complement
DR Congo investment in construction. The structure of the agreement needs to be similar to that
for the Rift Valley Railway in Kenya or a similar successful PPP rail project of this scale. This will
require a special government unit to manage the process.
A fnancing plan needs to be developed for the railway, which would explore potential sources
such 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
Funding Requirements
www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)
Nphamda - Nkuwa
Sector: Energy
Project Number: PIDA / ENERGY /
SOUTHERN / N 3
Sector: Generation
Type: Feasibility/needs assessment
REC Involved: SADC
Benefciary countries: Mozambique,
Zambezi basin
Inter Governmental Organizations: AUC/
NPCA
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
Technical
Information
Completion of fnancing plan. The Advisors to the
project Sponsor have not yet completed the fnanc-
ing plan and project structure needs to be adapted
for the project to present a risk profle attractive to
commercial fnancing.
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 fnancing; develop intermediation services from
IFIs to allow access of the project to exchange rate
hedging instruments.
Propose an open book structure to the developer to
allow access to fnancing from IFIs permitted through
Milestones
the tendering of the main contracts and pass-through in the tariff of benefts from open tendering
of 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 fxed cost) and to match the duration of
off-take contracts with fnancing terms.
Implementation in
Million USD
2 400
Funding Requirements
www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)
Lesotho HWP Phase II -
hydropower Component
Sector: Energy
Project Number: PIDA / ENERGY /
SOUTHERN / N 4
Sector: Generation
Type: Feasibility/needs assessment
REC Involved: SADC
Benefciary countries: Lesotho, South
Africa, Orange-Senqu River Basin
Inter Governmental Organizations: AUC/
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 signifcant royalty payments to
Lesotho (from SA) for the water transfer and ensures
the water security of South Africas most important
economic region (Gauteng province) centered around
Johannesburg and the capital city Pretoria.
Expected
Results
The Lesotho Highlands Water Project Phase II consists
of two separate components a) the construction of
Polihali Dam and transfer to tunnel to Katse dam (which
was 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 implementation
of Phases I A and I B, except that the proposed
1200MW pumped storage component presents a
new dimension.
Support Lesotho in advancing preparation for the
pumped storage component, particularly in relation
to fnancing.
Investigate the use of guarantees by international
institutions such as Miga for the pumped storage
component.
Background
Next Stage The preparation for the water transfer component is well advanced. The issuing of design and
construction tenders is scheduled for July 2012 January 2015. Construction of the supporting
infrastructure 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
(fnanced by the Sweden) and further detailed studies are only expected to start from January
2013.
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 the
project taking place on the RSA territory.
On 11 August 2011, the governments of Lesotho and South Africa signed the agreement to
proceed with the Lesotho Highlands Water Project Phase II. It needs to be noted that Phase II is
geographically 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 assumes
responsibility 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 required
in support of funding for this component. Similarly Lesotho assumes responsibility for the costs
of implementing the pumped storage scheme and raises the guarantees to support the secured
fnancing facilities.
Implementation in
Million USD
2 400
Milestones
Funding Requirements
www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)
Inga Hydro Phase 1
Sector: Energy
Project Number: PIDA / ENERGY /
CENTRAL / N 5
Sector: Generation
Type: Feasibility/needs assessment
REC Involved: ECCAS
Benefciary countries: DRC Congo River
Countries
Inter Governmental Organizations: AUC/
NPCA
Technical Organizations: CAPP
Objectives The project objective is to encourage the reliance on
local renewable energy and increase energy trade
between DRC, Zambia and South Africa as well as DRC
Congo Rover Countries.
Expected
Results
Develop 4,200 MW capacity run of river hydropower
station on the Congo river with eight turbines.
Project
Challenges
The structure for project development has not been
established 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 of
developer.
Cooperation framework between GODRC and
potential off-taker of power exports has not been
established yet and the project is being developed
as a purely national project, and need for coordina-
tion with future institutional framework for Grand Inga
development.
Putting together a fnancing package for a US$ 3
billion (US$ 4 to 5 billion including contingencies and
fnancing costs) representing 38% of 2010 GDP
Political risk of DRC
Minimizing contingent liability on GODRCs balance
sheet
Background
Next Stage Consider the option of establishing a SPV for the project as a preparatory phase for structuring
it 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 contractual
framework (domestic and/or international off-take PPAs), bearing in mind that a structure with
signifcant off-take from creditworthy industrial or international entities (South Africa, Botswana,
Namibia) will facilitate attracting fnancing for the project.
Support the integration of international expertise (in addition to the law frm fnanced by ADB) in
the initial project development team in the GODRC to accelerate the development of a project
structure suitable for attracting commercial and IFI fnancing under a PPP structure and propose
a risk profle minimizing the DRC country risk.
Inga 3 fnancing structure will call on various sources of funds. It is clear that a fnancing pack-
age can be assembled only if the projects commercial risk is essentially transformed from a
DRC risk to an export based industrial risk and to Inga power importing countries of good credit
standing, leaving the pure political risk with GODRC. The main consequence is that the project
will need to be largely industry and export based.
Implementation in
Million USD
6 000
Milestones
Funding Requirements
www.pidafrica.org Programme for Infrastructure Development in Africa (PIDA)

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