WORLD NEWS
4 JULY 2009 INTERNATIONAL WATER POWER & DAM CONSTRUCTION
WORLD
NEWS
WORLD
NEWS
www.waterpowermagazine.com
W
ORKSHOP TALKS IN THE
Democrat ic Republic of
Congo (DRC) have paved the
way for the next stage of development
of th e Inga III hydro power scheme,
with plans to establish a project com-
pany and steering committee.
It was proposed in the workshop,
held in the capital Kinsasha, that a
company be established to develop
the 4320MW scheme and have
responsibility to negotiate contracts for
Workshop talks help prepare
way ahead for Inga III
design and construction activities,
funding, licensing and operations.
The talks, which followed completion
o f the p re-feasibility study by SNC
Lavalin last year, also proposed that
a p roj ect steering com mittee be
e stablished within 60 days, or by
late August.
Construction of the run-of-river Inga
III scheme is estimated to cost approx-
imately US$7.6B and be commis-
sioned around 2018-21.
Roles of development partners were
clarified during the workshop, and it
was confirmed that sufficient funds
were available for the next phase of the
planning. It was noted that a focus of
the funding assessment dealt with
development supporters so far, mainly
the Western Power Corridor (Westcor)
countries – DRC, Botswana, Angola,
Namibia and South Africa – and also
the concerns of BHP Billiton with regard
to its aluminium smelter.
Organisations that participated in
the pre-feasibility study, which con-
cluded in February, included the World
Bank, Asian Development Bank
(ADB), the EU, BNP Paribas, Fortis,
BCDC, ANAP and K'Water.
A technical and financial analysis
of the scheme was carried out by a
group including BNP Paribas and
Ingerop with financial support from
the World Bank.
S
eparately, the African
Development Bank (AfDB) is under-
taking comparative studies of the Inga
site. The bank approved funds a year
ago to study hydro power potential of
the Inga complex on the river Inga,
and links to the power grid. The stud-
ies are being undertaken by DRC's
national electricity company, Societe
Nationale d'Electrcite (SNEL), assist-
ed by Africa Power Tools, and is to be
completed in 2010.
The Inga complex, on the lower
Congo river, is one of the key areas
of hydro power potential in the world.
The Inga 1 and 2 plants are being
refurbished and beyond plans for
Inga III there is the possibility of con-
structio n of the world 's largest
scheme – Grand Inga – which would
have an installed capacity of approx-
imately 40GW, and could be built by
2020-25.
Last year the World Energy Council
(WEC) hosted talks in London to help
examine the financial aspects of devel-
oping the hydro potential of the river
Inga. In the talks, the Inga III and
Grand Inga projects were viewed as
strategic, complementary ventures
with estimated potential electricity pro-
duction of 320TWh per year. The total
cost of the two plants would be more
than US$40B, excluding the trans-
mission system.
Refurbishment work is underway
under a public-private initiative for the
Inga 1 and Inga 2 plants, which had
original capacities of 351MW and
1424MW, respectively. However,
reduced demand and funding limita-
tions resulted in a poorer maintenance
budget and power output.
Rusal OKs funds for Boguchanskaya build
R
USHYDRO HAS ANNOUNCED
that the funding for construction
of the 3GW Boguchanskaya
project, in Russia, has been saved fol-
lowing agreement with aluminium pro-
ducer Rusal to continue support of
the 'strategic' scheme.
The Russian hydro power utility said
that Rusal had 'backed off' from its
proposal to freeze construction.
Instead, Rusal is to contribute a total
of Rouble 1.7B (US$54.6M) over June-
July towards the hydro power project,
which the aluminium producer again
views as a strategic development.
The utility, though, wants to see
their new investment agreement
signed as soon as possible, and
hopes it will happen soon.
The Boguchanskaya plant is under
construction on the river Angara, in
Siberia. It is to be equipped with nine
units, each of 333MW nominal capac-
ity supplied by Power Machines.
The first 7.86m diameter turbine
was despatched in Q3-2008, and the
next two units are to be sent to site
later this year. It is planned that three
generating units ar e to be commis-
sioned each year over 2010-12, which
is just over 30 years after work start-
ed during the Soviet era.
At full operation, the plant is
expected to generate 17,600GWh of
electricity per year.
The agreement between the
Russian hydro power utility and Rusal
would cover the remaining construction
work and include details on the time-
line, funding required and monthly pay-
ments to be made. The cashflow
forecast would provide information for
the development partners to provide
or seek supplementary funds, such as
bank debt.
Rusa l recently paid Roubl e 256M
( US$8.2M) towards the project
funds and plans to hand over a
fur ther sum of Rouble 551M
(US$17.8M) before the end of June.
I n add ition, in July it is to transfer
E
FFORTS TO DEVELOP SMALL
hydr o a nd other renewable
energ y proj ects in Sri Lanka
thro ugh private secto r involvement
are to be helped by the International
Finance Corporation (IFC).
IFC, part of the World Bank Group,
plans to help boost renewables in Sri
Lanka through a package valued at
US$15M to support the activities of
the Commercial Bank of Ceylon.
The package value is based on risk-
sharing facilities, such as data on
financing, project structuring and
benchmarking to support the local
bank's efforts to evaluate and help
fund renewables projects.
IFC added that institutional building
for the local bank's work was also
included in the value of the package,
with an advisory component being
funded by the government of Ireland
and Japan as well as the Global
Environmental Facility.
Key energy sources that the Sri
Lankan Government is seeking to get
more private sector support for are
small hydro power, wind and biomass.
While there are some large r hydro
schemes, such as Samanalawewa,
Sri Lanka to get renewables support from IFC
most of t he countr y's electricity
generation assets are based on
fossil fuel s.
IFC said the funding support would
help diversify the energy mix in Sri
Lanka, and is part of its wider strate-
gy to help the private sector become
more involved in mitigating the impact
of climate change while meeting infra-
structure needs in the region.
Roub le896M (US$28.6M) extra
towards the project finance needs.
RusHydro said that a signed legal
document on the financing procedure
wo uld ensure funds are secure d to
make prompt payments to the
supply chain, and as such would
allow the co-developers to focus on
const ruction progress.
Renewal of support for the hydro
power scheme comes from Rusal
changing plans to ensure the start-up
of two smelters, Buguchanskaya and
Tayshetskogo, to take advantage of the
electricity available. In addition, Rusal
has made changes to optimise the
construction costs of the smelters.