27 11 13 Reuters INSIGHT-After lost decades, hopes rise for Congo dam to power Africa
Talk of progress at Inga comes at a
time of fresh optimism in Congo. Its army, backed by South African troops in a
U.N. peackeeping mission, has defeated the most serious rebellion to plague the
mineral-rich east in a decade. [ID:nL5N0IW3OG]
time of fresh optimism in Congo. Its army, backed by South African troops in a
U.N. peackeeping mission, has defeated the most serious rebellion to plague the
mineral-rich east in a decade. [ID:nL5N0IW3OG]
"This incredible feat of human ingenuity, when completed, will have the
capacity to power Africa and indeed to export electricity beyond the continent,"
South African President Jacob Zuma said at a signing ceremony in Kinshasa.
capacity to power Africa and indeed to export electricity beyond the continent,"
South African President Jacob Zuma said at a signing ceremony in Kinshasa.
It also comes amid a drive to ensure Africa's era of growth isn't
brought to a halt by lack of power. According to the World Bank, sub-Saharan
Africa, with its 800 million people, produces the same amount of power as Spain,
home to 45 million.
brought to a halt by lack of power. According to the World Bank, sub-Saharan
Africa, with its 800 million people, produces the same amount of power as Spain,
home to 45 million.
Uganda has recently completed the 250 MW Bujagali dam near the source of
the Nile. Ethiopia is building the 6,000 MW Grand Renaissance dam, which will be
Africa's largest once completed. To the west in Sierra Leone, hydro-electric
power is central to a $3.5 billion plan to increase power production tenfold by
2017.
the Nile. Ethiopia is building the 6,000 MW Grand Renaissance dam, which will be
Africa's largest once completed. To the west in Sierra Leone, hydro-electric
power is central to a $3.5 billion plan to increase power production tenfold by
2017.
None come close the scale of Grand Inga. But experts urge caution, even
for just the first stage of the process.
for just the first stage of the process.
In February 2012, the previous plan for Inga III fell through when the
dam's main source of cash, an aluminium refinery planned by BHP Billiton
<BHP.AX>, was shelved. This led to talks with South Africa to secure a
market for Inga's power.
dam's main source of cash, an aluminium refinery planned by BHP Billiton
<BHP.AX>, was shelved. This led to talks with South Africa to secure a
market for Inga's power.
"The major issue is whether the financing for the project will come
through. The cost of Inga III is twice the official voted state budget, and is
actually four times the executed budget," said a Congo-based diplomat who
follows the issue.
through. The cost of Inga III is twice the official voted state budget, and is
actually four times the executed budget," said a Congo-based diplomat who
follows the issue.
"The other real question mark is over the business climate and the kinds
of guarantees that investors have," he added. Congo ranks among the world's 10
most difficult places to do business, according to the World Bank.
of guarantees that investors have," he added. Congo ranks among the world's 10
most difficult places to do business, according to the World Bank.
STATE OF DISREPAIR
Not far from where the Congo River completes its 4,700 km (2,900 mile)
journey to the Atlantic Ocean, the water splits in two. Some races over rocks,
kicking up white water and creating a deafening roar. The rest, slow-moving and
brown, builds up against concrete walls and shoot down tubes, spinning
turbines.
journey to the Atlantic Ocean, the water splits in two. Some races over rocks,
kicking up white water and creating a deafening roar. The rest, slow-moving and
brown, builds up against concrete walls and shoot down tubes, spinning
turbines.
A close look highlights how much stands between today's Inga and the
40-year-old grand pan-African power dream.
40-year-old grand pan-African power dream.
Both Inga I and Inga II, completed in 1972 and 1982, are in disrepair.
Power lines to the capital, 450 km (280 miles) away, have not been upgraded
since and struggle to meet the load.
Power lines to the capital, 450 km (280 miles) away, have not been upgraded
since and struggle to meet the load.
Mobutu Sese Seko, who ruled Congo for 20 years, used Inga to curb
secessionist plans by the distant eastern Katanga province by making its mining
sector reliant on power supplies from the dam. Today, mining firms ploughing
billions of dollars into copper and cobalt operations there complain of a 300 MW
deficit.
secessionist plans by the distant eastern Katanga province by making its mining
sector reliant on power supplies from the dam. Today, mining firms ploughing
billions of dollars into copper and cobalt operations there complain of a 300 MW
deficit.
Despite Congo's massive power potential, only nine per cent of its 72
million inhabitants have access to electricity and the nearby capital suffers
frequent blackouts.
million inhabitants have access to electricity and the nearby capital suffers
frequent blackouts.
An official at SNEL, the state power company, says just 40 percent of
the power produced is paid for, driving up debts. State agencies, including
ministries and the army, are among the worst offenders.
the power produced is paid for, driving up debts. State agencies, including
ministries and the army, are among the worst offenders.
BILLIONS NEEDED
The three consortiums in the running for the Inga III contract include
China Three Gorges and Sinohydro <SINOH.UL>; Spain's Eurofinsa and ACS
<ACS.MC>; and a partnership between Canada's SNC-Lavalin and South Korean
duo Posco <025100.KS> and Daewoo <047040.KS>.
China Three Gorges and Sinohydro <SINOH.UL>; Spain's Eurofinsa and ACS
<ACS.MC>; and a partnership between Canada's SNC-Lavalin and South Korean
duo Posco <025100.KS> and Daewoo <047040.KS>.
"It's true we have dragged our feet a lot," said Désiré Baleka Njemoti,
SNEL's top technician at Inga. "But now we have made serious contact with
partners, with the World Bank, and other countries are very interested in this
energy."
SNEL's top technician at Inga. "But now we have made serious contact with
partners, with the World Bank, and other countries are very interested in this
energy."
An advisor to Prime Minister Augustin Matata Ponyo said the government
hopes to choose a consortium to build by dam by April. Construction would then
start in October 2015 and take five to six years to complete, he added.
hopes to choose a consortium to build by dam by April. Construction would then
start in October 2015 and take five to six years to complete, he added.
Kapandji said the tender process was not closed so other companies could
join and the selection could be delayed.
join and the selection could be delayed.
Whoever wins will need to invest about $8.5 billion, with the World
Bank, African Development Bank and the South African Development Bank plugging
the gap for the total bill, estimated at $12-13 billion.
Bank, African Development Bank and the South African Development Bank plugging
the gap for the total bill, estimated at $12-13 billion.
According to plans, investments will be recovered in sales of energy
South Africa and to the mining companies in Katanga.
South Africa and to the mining companies in Katanga.
South Africa's commitment reflects Pretoria's deepening ties with Congo,
a decade after it hosted peace talks to end a 1998-2003 war that sucked in many
regional armies. South African soldiers were key members of U.N. peacekeeping
units that went on the offensive against rebels this year in Congo's east.
a decade after it hosted peace talks to end a 1998-2003 war that sucked in many
regional armies. South African soldiers were key members of U.N. peacekeeping
units that went on the offensive against rebels this year in Congo's east.
(Writing by David Lewis; Editing by Daniel Flynn and Peter
Graff)
Graff)