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

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

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Catherine Dernis + 33-6-99-89-52-33 - 
[email protected]

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