11
III Africa Energy Yearbook 2011 Contents Acknowledgment I The Power of Policy The ACP-EU Energy Facility: improving access to modern energy services for rural and peri-urban areas 1 The Energy Facility Team, Water and Energy Facility Unit, European Commission: EuropeAid Ecosystems for Total Energy Access: unlocking the virtuous circle of energy, growth and employment 7 Steven Hunt, Senior Energy Consultant, Practical Action Approach to investing in Africa- the ‘elephant in the room’ 11 Neil Upton, Partner, Greenberg Traurig Maher Is nuclear power a critical and timely option for Africa electricity production? 13 Latsoucabé Fall, Regional Manager: Africa, World Energy Council Recolonizing Africa on the power grid 19 David McDonald, Professor of Global Development Studies, Queens University, Canada Practical Power Renewable Energy for African Cities and Towns 23 Ralph Sims, Professor of Sustainable Development, Massey University, New Zealand Renewable energy policy developments and hold ups in South Africa 29 Lucy Baker, School of International Development, University of East Anglia Energy Management and Sustainability: the Revoluform 33 Khalil Elahee, Lecturer, Faculty of Engineering, University of Mauritius Developing a sustainable sub-Saharanelectricity sector starts with quality training - 37 an opportunity for new partnerships? Christine Heuraux, Director, Access to Energy Division, EDF Renewable energy feed-in tariffs 43 Andrew Gray, Partner, Gowlings (UK) LLP Rural electrification in Africa: strategies for progress 47 Simon Rolland, Secretary General, Alliance for Rural Electrification The Power of Climate Climate change and energy poverty in Africa 51 Teodoro Sanchez, Energy Technology and Policy Advisor, Practical Action Climate finance – opportunities for project co-financing 55 Guido Schmidt-Traub, Climate Change Advisor, Africa Progress Panel A model for clean energy innovation in Africa 59 Jonathan Coony, Climate Technology Program Coordinator, infoDev, World Bank Alexander L. Alusa, Climate Change Policy Adviser, Office of the PM, Government of Kenya Fueling Development Biofuels, rural development and food security 63 Rodney Cooke, Director, Policy and Technical Advisory Division, IFAD Vineet Raswant, Senior Technical Advisor, Policy and Technical Advisory Division, IFAD How the new developments in the gas sector can impact Africa's energy sustainability 67 Latsoucabe Fall, Regional Manager: Africa, World Energy Council Mitigating energy risk through bioenergy 75 Meghan Sapp, Secretary General, PANGEA - Partners for Euro-African Green Energy South African petroleum industry efforts to improve air quality 79 Avhapfani Tshifularo, Executive Director, South African Petroleum Industry Association – SAPIA Financing Power Elephants in the Room 83 Dave Smit, Manager Structured Finance - Energy, FMO Finding a sustainable power solution for Africa 87 Dario Musso, Senior Transactor, Rand Merchant Bank Daniel Zinman, Senior Transactor, Rand Merchant Bank Public-private partnerships and delivering transformational infrastructure projects 91 Pankaj Gupta, Manager, Financial Solutions Group, The World Bank Katherine C. Baragona, Senior Infrastructure Finance Specialist, The World Bank Wind energy in Africa: a sustainable business? 95 Youssef Arfaoui, Energy Expert and Senior Investment Officer, African Development Bank

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Page 1: Africa Energy Yearbook 2011

IIIAfrica Energy Yearbook 2011

Contents

Acknowledgment I

The Power of PolicyThe ACP-EU Energy Facility: improving access to modern energy services for rural and peri-urban areas 1The Energy Facility Team, Water and Energy Facility Unit, European Commission: EuropeAid

Ecosystems for Total Energy Access: unlocking the virtuous circle of energy, growth and employment 7Steven Hunt, Senior Energy Consultant, Practical Action

Approach to investing in Africa- the ‘elephant in the room’ 11Neil Upton, Partner, Greenberg Traurig Maher

Is nuclear power a critical and timely option for Africa electricity production? 13Latsoucabé Fall, Regional Manager: Africa, World Energy Council

Recolonizing Africa on the power grid 19David McDonald, Professor of Global Development Studies, Queens University, Canada

Practical Power Renewable Energy for African Cities and Towns 23Ralph Sims, Professor of Sustainable Development, Massey University, New Zealand

Renewable energy policy developments and hold ups in South Africa 29Lucy Baker, School of International Development, University of East Anglia

Energy Management and Sustainability: the Revoluform 33Khalil Elahee, Lecturer, Faculty of Engineering, University of Mauritius

Developing a sustainable sub-Saharanelectricity sector starts with quality training - 37an opportunity for new partnerships?Christine Heuraux, Director, Access to Energy Division, EDF

Renewable energy feed-in tariffs 43Andrew Gray, Partner, Gowlings (UK) LLP

Rural electrification in Africa: strategies for progress 47Simon Rolland, Secretary General, Alliance for Rural Electrification

The Power of ClimateClimate change and energy poverty in Africa 51Teodoro Sanchez, Energy Technology and Policy Advisor, Practical Action

Climate finance – opportunities for project co-financing 55Guido Schmidt-Traub, Climate Change Advisor, Africa Progress Panel

A model for clean energy innovation in Africa 59Jonathan Coony, Climate Technology Program Coordinator, infoDev, World BankAlexander L. Alusa, Climate Change Policy Adviser, Office of the PM, Government of Kenya

Fueling DevelopmentBiofuels, rural development and food security 63Rodney Cooke, Director, Policy and Technical Advisory Division, IFADVineet Raswant, Senior Technical Advisor, Policy and Technical Advisory Division, IFAD

How the new developments in the gas sector can impact Africa's energy sustainability 67Latsoucabe Fall, Regional Manager: Africa, World Energy Council

Mitigating energy risk through bioenergy 75Meghan Sapp, Secretary General, PANGEA - Partners for Euro-African Green Energy

South African petroleum industry efforts to improve air quality 79Avhapfani Tshifularo, Executive Director, South African Petroleum Industry Association – SAPIA

Financing PowerElephants in the Room 83Dave Smit, Manager Structured Finance - Energy, FMO

Finding a sustainable power solution for Africa 87 Dario Musso, Senior Transactor, Rand Merchant BankDaniel Zinman, Senior Transactor, Rand Merchant Bank

Public-private partnerships and delivering transformational infrastructure projects 91 Pankaj Gupta, Manager, Financial Solutions Group, The World Bank Katherine C. Baragona, Senior Infrastructure Finance Specialist, The World Bank

Wind energy in Africa: a sustainable business? 95Youssef Arfaoui, Energy Expert and Senior Investment Officer, African Development Bank

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IV Africa Energy Yearbook 2011

Contents

Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development

The tipping point 93Paul Eardley-Taylor, Head of Energy, Utilities & Infrastructure Coverage, South Africa & Africa, Standard BankNicholas Green, Analyst: Energy, Utilites and Infrastructure, Standard Bank

Banking on energy 103Power & Energy Team, ABSA Capital — With comments from, Omar Vajeth, Head of Power and Energy

Artists’ Biographies 107

DirectoriesConventional Thermal Generators 109Temporary Power 119Hydropower 124Wind 125

African Power ProjectsConventional Power Projects 127Temporary Power Projects 161Renewable Power Projects 162

African Power Investors 167

Index of AdvertisersAfrican Development Bank Inside front/back coverAndritz Hydro GbmH Outside back coverNorton Rose 6Greenberg Traurig Maher 10Mott MacDonald 27Vestas 28

Concentrix Solar (Soitec) 32

Gowlings (UK) LLP 42

Globeleq 46

International Development Corporation 50

Lucy Switchgear 78

FMO 82

Rand Merchant Bank 86

Nedbank 90

Fieldstone Africa 94

Swiss Investment Risk Insurance (SERV) 98

Proparco 102

Africa Finance Corporation 105

Futuremap 106

Wartsila 108

Caterpillar SARL 110

Aggreko Energy Rental South Africa (Pty) Ltd 117

Energyst 120

APR Energy 122

African Energy 126

Sofreco 168

London & Bamako - A Contemporary Art Exhibition 170

Index of images ‘Oops’ - Wangari Mathenge 5

‘Afternoon Walk With Gary In Haute Couture’ - Wangari Mathenge 45

‘Who Is The Girl I See Where I'm Supposed To Be’ - Wangari Mathenge 58

‘Red Guitar’ - Nyemike Onwuka 66

‘Funkadelic’ - Wangari Mathenge 73

‘Absolutely Fabulous’ - Wangari Mathenge 74

‘Even Caterpillars Want To Be Butterflies’ - Wangari Mathenge 77

‘Reunion I’ - Nyemike Onwuka 81

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Page 3: Africa Energy Yearbook 2011

Introduction

Meeting the growing energy demand overthe long term and delivering cost-effective power supply solutions, in

harmony with the global and local climaterequirements would require secure, reliable,affordable, clean and sufficient energy supplies;and among them nuclear power (NP) is set as avaluable option.

Although NP is not an easy alternative energysource to develop and implement; manyuncertainties and hurdles are surrounding therelated industry. And for Africa to adopt NP, manycritical challenges should be addressed (political,technical, managerial, financing, humanresources, etc.). Thenceforth, the right questionsto answer in this article are:• What should be the place of Africa in the

global nuclear scene?• Is NP a compelling option for Africa’s

sustainable energy supply?• What are the obstacles and barriers to

roll out NP in Africa?• What are the key factors most responsive

to the needs of African countries to adopt NP?• What could be the right time-frame for

NP deployment in Africa?

1. Why Nuclear Power?

Until recently (i.e. before the Japanesenuclear crisis), NP had generatedconsiderable enthusiasm worldwide as acost-effective, reliable and climate friendlypower supply option, with the followingadvantages and intrinsic qualities:• Suitable for base-load power generation,

aiming at contributing to meeting countries’ growing electricity demand,while “decarbonizing” electricity production;

• Low carbon technology, suitable for GHG emissions reduction and allowing most developed and emerging economies to meet their national targets for CO2

emissions reduction;• Affordable, with low production cost per

kWh and offering cheap electricity prices toconsumers and industries;

• Stable fuel source, with low price volatility/ fluctuation;

• Capable of contributing significantly to ensuring a secure energy supply, with an increased energy diversity;

• Contributing significantly to reduce countries’ dependence on fossil fuels;

• High and proven reliability, high perform-ance record and high capacity factors;

13Africa Energy Yearbook 2011

Dr. Latsoucabé FALL is seniorexpert in the energy sector withabout 30 years of experience.

His knowledge embraces allaspects of the energy sector, andhis related experience extended inAfrica and worldwide.

He is currently World EnergyCouncil (WEC) Regional Managerin Africa and before that WECCoordinator for Africa. In theframework of these positions, he isplanning, managing and/or coordi-nating all WEC’s activities in Africa.

Dr. FALL has delivered severalinternational papers, technicalreports and presentations in theenergy sector, as author, consultantor expert.

Is nuclear power a critical and timelyoption for Africa electricity production?

Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development

The Power of Policy

Dr Latsoucabé FallRegional Manager: AfricaWorld Energy Council

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29Africa Energy Yearbook 2011

Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development

Practical Power

0:05:00

Demystifying the complexities of SouthAfrica’s renewable energy policy in acontext of constantly moving goal

posts is an enormous challenge. Numerouspolicy uncertainties and delays still remainfor independent power producers (IPPs)waiting to construct and connect theirrenewable energy projects to the country’selectric grid. Despite intense interest fromIPPs and national and internationalinvestors over the past few years, not onerenewable energy power purchaseagreement (PPA) had been licensed at thetime of writing. Though greater clarity andhope has been provided by the imminentapproval of the country’s long-awaitedIntegrated Resource Plan (IRP 2010), whichcould result in 42 per cent of newgeneration capacity coming from renewableenergy up to 2035, increased uncertaintyhas now been created by the NationalEnergy Regulator’s (NERSA) RenewableEnergy Feed-in Tariff (REFIT) consultationpaper of March 2011 which proposes toreduce tariffs to replace those approved byNERSA in 2009 for REFIT phase 1 and 2.

In 2010 alone South Africa’s energypolicy arena witnessed a bewildering seriesof twists and turns, preceded in December2009 by President Jacob Zuma’scommitment as part of the CopenhagenAccords that the country would reduce itscarbon dioxide emissions by 34 per centbelow business as usual by 2020 and 42per cent by 2025. On 31 December 2009the Department of Energy (DoE) publishedits first Integrated Resource Plan (IRP1) forthe next three years- a mere three pages. InFebruary’s State of the Nation’s AddressPresident Zuma announced that anindependent system operator separate toEskom Holdings would be established. InFebruary and March 2010, NERSA soughtpublic comments on REFIT selection criteriafor which the final version, one year on, isstill pending. On 24 February 2010 NERSAannounced a price increase in electricity ofapproximately 25 per cent per year for thenext three years starting on 1 April 2010,swiftly followed by public outcry overpreferential tariff deals for energy intensiveusers that had been agreed before the end

of apartheid. Amidst great national andinternational controversy, the World Bank’sboard then approved a $3 billion loan forthe Medupi coal-fired power plant,alongside $260 million for Eskom’s SereWind Farm and Upington Solar Power Plant.The first draft of the long-awaited secondIntegrated Resource Plan (IRP 2010), whichis to shape the country’s energy mix for thenext 20 years, was released for publiccomment in May 2010 with public hearingstaking place in Pretoria in June. A seconddraft was released in October followed byanother set of hearings at the end of theyear. In September the DoE announced thatit was starting its procurement process forREFIT and released a ‘request forinformation’ for potential private developersof renewable energy projects intending toapply.1 Revised Electricity Regulations onNew Generation Capacity were released bythe DoE on 30 November 2010, makingsignificant changes to the previous version,approved a mere thirteen months before.The status of the country’s IntegratedEnergy Plan which is required annually bythe National Energy Act of 2008 and ofwhich the IRP is meant to be a subsetremains unclear. Meanwhile, the GreenPaper on the National Climate ChangeResponse was gazetted for public commenton 25 November 2010 by the Departmentof Environmental Affairs, followed by adiscussion document released for commentby Treasury on the introduction of a nationalcarbon tax.

South Africa’s director-general forelectricity, nuclear and clean energy OmpiAphane recently admitted that delays toREFIT were likely to result in South Africafailing to meet its renewable energy whitepaper target of 10 000 GWh of renewableenergy consumption by 2013.2 Yet credibleinterest in South Africa’s renewable energyindustry is vast, has the potential to form amajor part of national energy developmentand make significant contributions to keynational priorities on carbon emissionsreduction, job creation, energy access, ruraldevelopment, inward investment andregional energy development.

Lucy Baker is a PhD researcherin the School of DevelopmentStudies at the University of EastAnglia. She was a fellow with theInstitute of Security Studies in CapeTown during 2010. Her workingthesis title is ‘the governance ofclean energy in South Africa'. Priorto taking up her PhD Lucy workedfor seven years as researcher andpolicy officer with environment anddevelopment organisations. Herareas of expertise include: energygovernance in South Africa; theWorld Bank and energy sectorreform; climate change financing;and the environmental and socialpolicies of international financialinstitutions. Lucy holds an MSc inDevelopment Studies from theSchool of Oriental and AfricanStudies, University of London andundergraduate degree (MA Hons)in Hispanic Studies and Frenchfrom the University of Edinburgh.

Lucy Baker PhDSchool of InternationalDevelopmentUniversity of East Anglia

Fits and starts: renewable energypolicy in South Africa

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Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development

The Power of Climate

Executive summary

The Government of Kenya and the WorldBank Group’s infoDev unit are workingtogether to pioneer a new model to help

transform energy and climate challenges intomarket opportunities leading to economicdevelopment and job creation. By supportingnew and existing skills sets – and especiallyby tapping countries’ entrepreneurial spirit –Kenya and other African countries can take amore pro-active and profitable approach toaddressing their own local challenges.

The Government of Kenya and infoDevhave designed and are now implementing theworld’s first Climate Innovation Center (CIC),to be operational in the second half of 2011.The CIC will support local capacity – targetingthe private sector – to develop profitable,innovative solutions to domestic clean energyand climate challenges through early stagefinancing, business advisory services,technology information, office and technicalfacilities, government policy advisory, small-scale grants, business-to-business brokeringand other services to promising local firms. Itwill be part of the larger Greening KenyaInitiative coordinated by the Office of thePrime Minister (OPM).

Innovative technologies and businessmodels are needed to solve the energy andclimate challenges of Africa where uniquecircumstances - including severe energyaccess problems, rich renewable energyendowments and uneven fossil fueldistribution – call for novel approaches. Localprivate sector, especially smaller companies,have unique skills and information and mustplay a key role to originate, develop anddeploy solutions addressing local conditions.

The Kenyan CIC will be first among severalof CICs in selected countries, with the goal ofmaking a global network. In Africa,development of CICs is now being pursued inEthiopia, South Africa, Rwanda and Morocco.Each CIC will follow a basic template thentailored to local needs. The global networkwill link the national CICs to allow forsynergistic innovation, shared experiencesand technologies, international business-to-business linkages, common knowledgeplatforms and global financing opportunities.

Jonathan Coony is theCoordinator for the ClimateTechnology Program at infoDev inthe World Bank Group. Previously,Jonathan was a Sr. EnergySpecialist at the World Bank wherehe led efforts to formulate strategyto accelerate energy technologiesfor partner countries; supportedseveral Investment Plans for theClean Technology Fund (CTF); andwas team leader of the ChinaTechnology Needs Assessment(TNA).

Before joining the World Bank,Jonathan worked five years at theInternational Energy Agency (IEA)in Paris where he led teams oncomprehensive country energy sec-tor reviews and published severalbooks on energy policy.

Jonathan holds an MBA fromINSEAD (France), and MS and BSdegrees in mechanical engineeringfrom Brown University (USA).

Jonathan In addition to this, heholds two patents in renewableenergy technology.*

Jonathan CoonyClimate TechnologyProgram CoordinatorinfoDevWorld Bank Group

A model for clean energy innovationin Africa

Alexander Alusa graduated fromOregon State University with aB.Sc. in Mathematics in 1969, andfrom State University of New Yorkat Albany with a M.Sc. inAtmospheric Science in 1971. Hehas worked in the East AfricanMeteorological Department in sev-eral roles and ultimately as DirectorKenya Meteorological Departmentin 1984-187. Late in 1989, hejoined the United NationsEnvironment Program as a ProgramOfficer responsible for the ClimateChange Impacts and ResponseStrategies Programme, responsiblespecifically for Climate ChangeConvention and its Kyoto Protocolnegotiations) 1989-2007. Since2007 he has been the ClimateChange Policy Adviser in the Officeof the Prime Minister, Kenya.*

*With special thanks to co-authors Anthony Lambkin(Project Lead, infoDev,World Bank Group) andJoseph Nganga (CEO,Renewable Energy VenturesKenya Ltd) for theircontribution to the article

Alexander L. AlusaClimate Change PolicyAdviserOffice of the PMGovernment of Kenya

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Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development

Fueling Development

Biofuels divide opinion like few othertopics. A search on Google for “biofu-els and food crisis” results in over a

million pages. Many cite biofuel as thedemon, driving up food prices and takingup land and crops that could otherwisehave fed people at a time when a billionpeople go to bed hungry every day. Othersemphasise their potential as an energyoption that reduce greenhouse gas (GHG)emissions and therefore mitigate climatechange, by promoting the transition towarda low carbon economy. Almost as manypromote biofuel as a driver of developmentand an opportunity to reduce rural poverty– which in turn are drivers of improvedfood security.

Analyses of the causes of the 2007–08food price crisis identify biofuel productionas one of the culprits, but also recognise aplethora of other drivers, including a“perfect storm” of shifting consumptionpatterns, rising oil prices pushing up inputssuch as fertilizer, increased intensity andfrequency of extreme weather events andchanged climatic conditions, andspeculation on commodity markets (Oxfam2008). Much of the impact of biofuels onfood prices derives from the adoption ofpolices in the European Union and theUnited States that suddenly increaseddemand for biofuel (Ewing and Msangi2009) using food crops as feedstock.However, it is useful to ask: should thatblame rest on the product or the policiesthat were pursued in developing it?

Some 2 billion people around the worlddo not have access to modern energysupplies such as electricity and liquid fuels.In sub-Saharan Africa more than half abillion people do not have electricity intheir homes. They have to rely instead ontraditional biomass fuels – wood, charcoaland dung and the like. But using thesefuels is environmentally unsustainable andbad for human health. It has beenestimated that more than 1.5 milliondeaths each year in developing countries –mostly women and children – can belinked to the effects of cooking andheating homes with these “dirty” fuels.

Dr. Rodney Cooke has beenDirector of the Policy and TechnicalAdvisory Division of theInternational Fund for AgriculturalDevelopment (IFAD) since 2000.This Division’s role is to enhancethe quality of IFAD’s programmeand to ensure learning, networkingand knowledge sharing associatedwith the organization’sdevelopment activities.

Prior to joining IFAD Dr Cookewas Director of the EU-ACPTechnical Centre for Agriculturaland Rural Cooperation (CTA), TheNetherlands, from 1995 to 2000.He also previously worked in theUK Department for InternationalDevelopment, his last post beingDeputy Director of the NaturalResources Institute in charge of theResource Assessment and FarmingSystems Programme.

Dr Rodney CookeDirectorPolicy and TechnicalAdvisory DivisionIFAD

Biofuels, rural development andfood security

Vineet RaswantSenior Technical AdvisorPolicy and TechnicalAdvisory DivisionIFAD

Vineet Raswant (BScEngineering, MBA Finance) hasover 30 years experience in thedevelopment field and has ledmultisectoral missions designingdevelopment projects around theworld. He is currently a SeniorTechnical Advisor in the Policy andTechnical Advisory Division of theInternational Fund for AgriculturalDevelopment (IFAD) in Rome, Italy.In this capacity he is involved inreviewing all IFAD projects in theareas marketing, enterprisedevelopment, value-chaindevelopment and the involvementof the private sector, with a view toensuring that project designensures that developmentobjectives are met. He is alsosupervising a study onmainstreaming value-chaindevelopment in IFAD’s operationsand is spearheading an effort topromote and develop biofuels tobenefit the poor. Prior to workingwith IFAD, Mr. Raswant workedwith the World Bank and AmericanAirlines, formulating theirstrategies for investing funds forstaff retirement plans.

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Financing Power

Public-Private Partnerships -recognizing the need for“shared opportunity and

shared risk”

The amount of project financingrequired to extend the reach ofinfrastructure services to all citizens

stretches beyond the budgetary means ofmost developing governments. OfficialDevelopment Assistance (ODA) funding,including World Bank Group commitmentsfor infrastructure, is expected to decline inreal terms over the next few years. Theprivate sector will need to play a moreprominent role in supporting solutions toinfrastructure deficits, and in most casesmay be even better positioned to providethe technology and skills that driveoperational efficiency. Yet, governmentswill need to stay engaged, as many of therisks associated with long-term investmentsare beyond the ability of the private sectorto manage. Leveraging public fundsthrough PPP investments will become morenecessity than nicety.

The world of PPPs hasexperienced dramatic shifts

Between 1990 and 2009, investmentcommitments to successful PPP projectsaveraged 1.2 percent of GDP in developingcountries—many times short of the needs.The geographic scope of private investmentin infrastructure has been relatively narrow,with almost 50 percent concentrated inMexico and the BRICs, and little progress inlow-income countries. Likewise, the sectoralscope of PPP projects has been limited, withalmost 50 percent in the telecommunicationssector. Overall private participation ininfrastructure (PPI) volumes have remainedrelatively steady in the face of the globalfinancial crisis, although this masks a flightto quality that appears to be hurting poorercountries most. This has placed greateremphasis on risk mitigation instruments. Incontrast, local markets have proven morerobust and liquid than the global financialmarkets, creating new opportunities tomobilize local currency financing for PPPs.

Mr. Gupta specializes in publicand private financing for powerand oil and gas projects. He hasbeen involved in numerous privateproject finance transaction thathave been supported by the BankGroup through both loans andguarantees. Most recently, he hasled the World Bank’s US$3.75billion loan to Eskom of SouthAfrica, structured risk mitigationinstruments for the $1.5 BillionNam Theun II Hydropower Projectin Laos. Since joining the WorldBank in 1996, Mr. Gupta has alsoclosed many key capital marketguarantee transactions notably inThailand, Colombia and Argentina.

Pankaj GuptaManager Financial Solutions Group The World Bank

Public-private partnerships anddelivering transformationalinfrastructure projects

Katherine C. Baragona Senior InfrastructureFinance SpecialistThe World Bank

Ms. Baragona is a senior bankexecutive / US lawyer / UK solicitorwith over 20 years of internationalpractice and experience. Sherecently joined The World Bank'sFinance, Economics and UrbanDevelopment Group in the role ofSenior Infrastructure FinanceSpecialist. A graduate of the UOP-McGeorge School of Law’s JDprogram in Sacramento, California,Kate also participated inMcGeorge's LL.M studies andinternship programs in Salzburg,Austria and London, England. Asan undergraduate, Kate studiedEconomics & Finance at St.Edwards University in Austin, Texas,and Graphic Design at LouisianaState University in Baton Rouge,Louisiana. Prior to joining TheWorld Bank, she held positionswith Richards Butler (in London &Brussels), Hunton & Williams (inBrussels & New York) and Citibank(in New York & London). Kate hasextensive work experience andtravel in Europe, the Middle East,Africa and Central Asia.

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Directory

Company: A.E.Z S r.l.Head Office location: Crespellano, ItlayGenerator Type: Low/medium voltage powersolutionsFuel: Diesel/GasSize: up to 2000kVATop 5 African countries of operation:Contact: Beatrice TassiPosition: Sales ManagerTelephone: +39 051739099Email: [email protected]: www.aezitaly.com

Aksa Jenerator Sanayi A.SIstanbul, TurkeyPortable, marine auxiliary and Onan marinegensetsDiesel/Gasup to 2,500kVAAlgeria, Nigeria+90212 [email protected]

Ascot International Gela, ItalySingle/ dual-use gensetsDiesel10-1500kVA+39 0933 913003www.ascot-italia.it

Atlas Copco Ghana LtdAccra, GhanaPortable gensetsDiesel12-1250kVAGhana+233 (0)302 77 45 [email protected]

Atlas Copco Portable Air LtdAartselaar, BelgiumPortable compressors and generatorsDiesel12-1250kVAAngola, Botswana, Congo. D.R, Egypt, KenyaElsie Vestraets+3234506117elsie.vestraets@be.atlascopco.comwww.atlascopco.com

Autogen Technologies IncorporatedCounty Tyrone, Northern IrelandOpen-set, sound attenuated, standard or

be-spoke generatorsDiesel10kVA-4MW+442 887747500 [email protected]

Balton CP LtdWatford, UKHigh speed reciprocating enginesDiesel5kVA- 2,000kVAGhana, Kenya, Nigeria, Rwanda, Senegal+441923 [email protected]

Barloworld PowerBoksburg, South AfricaDiesel and Gas4kW - 16MWSouth Africa, Angola, Namibia, Mozambique,Botswana, Zambia, MalawiNicola Morgan-EvensKey Account Manager(011) [email protected]

Bredenoord HandelsmyApeldoorn, The NetherlandsDiesel5-2000kVA+31 [email protected]

Briggs & Stratton CorperationDubai, U.A.EPortable, home and standby generatorsDiesel7-45kWAlgeria, Angola, Botswana, Egypt, Ethiopia+971 [email protected]

Broadcrown LtdStafford, UKHigh and medium speed reciprocating enginesDiesel/Gas6kVA-30MVAAngola, Cote d’Ivoire, Ethiopia, Ghana, Kenya+44 188 [email protected]

Bruno S.r.l.Grottaminarda, ItalyPerkins, Cummins, John Deere, Volvo, HondaDiesel2-2000kVA+39 0825 [email protected]

C Woermann GmbH & Co.KGHamburg, GermanyPrime and Standby Deutz enginesWater and air-cooled10-2000kVAGhana, Nigeria, Angola+4940 [email protected]

Calsion Power System Co. LtdDangguan City, ChinaMTU, Cummins, Volvo, Leroy SomerDiesel20kw-3,000kw+86769 [email protected]

Caterpillar Electric PowerIllinois, USADiesel, gas, FHOAny FuelAcross AfricaRobert RankinTertiary Manager AME, Electric Power Projects+41 22 849 [email protected]

Caterpillar Power Generation SystemsTexas, USAMedium speed diesel engines and equip-ment, turnkey diesel power plants up to150MWHeavy fuel oil, diesel oil, liquid bio fuels, nat-ural gasDiesel engines from 2 to 14MW, gas enginesupto 6.5MWCape Verde, Guinea Conakry, Mali, Mauritania,Sierra Leone Mikko BergqvistSales [email protected]

Conventional Thermal Generators

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Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development

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ple

ted 2

005].

Kahra

ma S

pA o

wned b

y B

lack &

Veatc

h I

nte

rnational Energ

y

[South

Afr

ica]

& A

lgerian E

nerg

y C

o (

join

tly o

wned b

y S

onatr

ach

and S

onelg

az)

(Equity s

plit

20%

para

sta

tals

/ 8

0%

Bla

ck &

Veatc

h).

Contr

acts

: I

HI

(Ishik

aw

ajim

a-H

arim

a H

eavy I

ndustr

ies

Co)

+ I

tochu [

both

Japan]

(turn

key).

CO

FACE,

Opic

+ J

apan B

ank for

Inte

rnational

Coopera

tion.

ABN

/Am

ro (

lead a

rranger

for

debt

finance).

Fuji B

ank [

London &

Japanese b

ranch]

(advis

ers

). Export

cre

dit e

xpecte

d w

ith B

lack &

Veatc

h S

A.

Sonatr

ach a

nd S

onelg

az t

o p

rovid

e

paym

ent

guara

nte

es.

Berr

ouaghia

500M

W g

as t

urb

ines (

ability t

o r

un o

n fuel

oil)

[Com

ple

ted]

Sonelg

az.

Contr

act:

Sie

mens (

pla

nnin

g,

two g

as t

ubin

es,

two

genera

tors

, associa

ted e

lectr

ical, instr

um

enta

tion &

contr

ols

syste

ms)

Sie

mens (

opera

tion &

main

tenance o

ver

7 y

ears

)

El H

am

ma

2x220M

W g

as t

urb

ines +

220kV s

ubsta

tion;

$150m

; [c

om

ple

ted 6

/2002].

Sonelg

az.

Contr

acts

: Ansald

o E

nerg

ia [

Italy

] (t

urn

key inclu

din

g

turb

ines),

Fic

htn

er

[Germ

any]

(consultant)

.

$200m

pro

ject.

Saudi Fund for

Develo

pm

ent

[$22m

10-y

r lo

an],

Isla

mic

Develo

pm

ent

Bank [

$20.2

m]

&

Ara

b F

und for

Econom

ic &

Socia

l D

evelo

pm

ent

[$175m

loan].

F’K

irin

a A

in B

eid

a P

ow

er

Pla

nt

300 M

W t

urn

key,

gas;

123m

Euro

s

[constr

uction d

ue t

o s

tart

Q4 0

3,

com

ple

ted

in 2

004]

Sponsor:

Sonelg

az.

Contr

act:

Als

tom

(civ

il w

ork

and s

upply

of gas

turb

ines--

two G

T13E2--

, genera

tors

, hig

h-v

oltage s

ubsta

tion a

nd

oth

er

equip

ment)

.

Hadjr

et

IPP

1,2

27M

W g

as-f

ired p

ow

er

pla

nt

[1st

600M

W

dela

yed in 2

003,

com

ple

ted in 2

009].

Sonatr

ach.

Contr

act:

EdF (

pre

-feasib

ility s

tudy);

Sarg

ent

& L

undy

[US]

(feasib

ility s

tudy)

Mubadala

has a

co-c

ontr

ollin

g s

take (

co-

develo

per)

GE E

nerg

y (

turb

ines)

US T

rade &

Develo

pm

ent

agency g

rant

for

feasib

ility

stu

dy (

$561,0

00).

Hassi Berk

ine

3x110M

W g

as t

urb

ines;

$120m

; [t

hre

e u

nits

com

ple

ted].

Anadark

o P

etr

ole

um

, Sonelg

az.

Contr

acts

: G

E N

uovo P

ignone

[Ita

ly]

(constr

uction),

ABB A

dda [

Italy

], A

BB H

igh V

oltage

Technolo

gie

s [

Sw

itzerland]

(sub-c

ontr

acte

d b

y G

E).

Arr

anger:

Socié

té G

énéra

le;

Export

cre

dit a

gencie

s:

SACE,

ERG

($34m

); S

yndic

ate

d F

inance:

Nate

xis

,

Ara

b B

ankin

g C

orp

ora

tion,

Bayerische L

andesbank,

ABB E

xport

Bank,

UBAF.

Hassi M

assaoud

125M

W [

com

ple

ted]

Sonelg

az

Koudia

t D

raouch

2x600M

W g

as C

C;

US$900 m

illion

[com

ple

tion d

ue 2

011].

Contr

acts

: G

enera

l Ele

ctr

ic,

Iberd

rola

, Als

tom

-Ora

scom

(constr

uction)

National grid u

pgra

de

Refu

rbis

h 2

20/9

0kV a

nd 6

0kV h

igh v

oltage

substa

tions E

l Aouin

et

and R

am

dane

Dja

mel;

insta

ll a

nd c

om

mis

sio

n 2

20kV a

ir

insula

ted a

nd 9

0kV a

nd 6

0kV g

as insula

ted

sw

itchgear;

supply

local dis

patc

h c

entr

es

(SCAD

A s

yste

ms),

rem

ote

term

inal units for

substa

tions in A

lgie

rs,

Ora

n,

Annaba a

nd

Setif coasta

l dis

tric

ts,

and p

ow

er

line c

arr

ier

devic

es,

tele

pro

tection d

evic

es a

nd lin

e

matc

hin

g u

nits;

Euro

32m

Sonelg

az.

Contr

act:

Are

va T

ransm

issio

n a

nd D

istr

ibution [

Fra

nce]

(form

ely

Als

tom

T&

D)

(tw

o n

ew

turn

key p

roje

cts

)

Optical cable

syste

ms

3,0

00km

optical gro

und w

ire a

nd 1

,000km

of la

shed c

able

to b

e insta

lled o

n 2

20kV

overh

ead t

ransm

issio

n lin

es;

$20m

Sonelg

az.

Contr

act:

Tele

com

munic

ations C

onsultants

of In

dia

(TCIL

) (s

yste

m inte

gra

tor)

; Pirelli [I

taly

] (s

upply

overh

ead o

ptical

cable

)

Skik

da P

ow

er

Pla

nt

880M

W ;

$562m

, com

bin

ed c

ycle

[com

ple

ted in 2

006]

Skik

da P

ow

er

Com

pany s

pecia

lly s

et

up b

y A

lgerian E

nerg

y

Com

pany (

AEC)

(20%

), S

onelg

az (

50%

), S

onatr

ach (

30%

).

Contr

act:

SN

C-L

avalin [

Canada]

-11%

of Skik

da’s

Pow

er

Com

pany’s

share

- S

onelg

az a

nd S

onatr

ach t

o r

educe h

old

ing t

o

accom

modate

- (

EPC &

O

& M

contr

act

for

12 y

ears

with p

ossib

le

12 y

ear

exte

nsio

n),

G

enera

l Ele

ctr

ic a

nd A

lsto

m (

turb

ines a

nd

genera

tor

for

firs

t 314M

W).

EIB

, Ex-I

m B

ank o

f U

SA $

192m

long t

erm

loan

Terg

a2x600M

W c

om

bin

ed c

ycle

pla

nt;

[com

ple

tion

due 2

011]

Sonelg

az.

Contr

act:

Als

tom

(engin

eering,

pro

cure

ment,

constr

uction a

nd m

ain

tenance)

Ora

scom

Constr

uction I

ndustr

ies

(civ

il w

ork

s &

constr

uction)

Sources: African Energy Newsletter provided invaluable information for this summary of African power projects. For an encylcopaedic list ofAfrican energy projects, covering oil, gas, power generation and transmission, and renewable energy, the African Energy Newsletter is thedefinitive publication. For details see the advert opposite.

Yearbook_2011_new_3 24/5/11 13:44 Page 127

Page 10: Africa Energy Yearbook 2011

167Africa Energy Yearbook 2011

Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development • Energy • Environment • Development

Power Investors

African Power Investors

Company Country Project StakeStart up date/

purchase date

ABB Equity Ventures Ivory Coast Azito: 300MW thermal 33% 2000

AES Cameroon

AES Sonel: 930MW hydro/diesel/HFO &

additional 85MW to Limbe HFO plant.

Distribution: 23,679km

56% Jul-01

AES Cameroon

AES Sonel: investment plan for

rehabilitation/expansion of production,

transmission and distribution system

56% 2006

AES NigeriaEbute: 306MW gas-fired barge-

mounted100% Dec-01

Agip Nigeria 320MW increasing to 800MW 20% Feb-05

Agip Nigeria Afam: 980MW 5%Unspecified

startup date

Aldwych

InternationalKenya Rabai: 90MW heavy fuel 2009

Aldwych

InternationalSouth Africa

Kelvin: 600MW coal

previous owners: City of Johannesburg,

AES, Globeleq

2007**

Aldwych

InternationalZambia

Copperbelt Energy Corp: owns minority

stake through shareholding in Zambia

Energy

2006

AMCK DRC

Lubumbashi distribution network: Anvil

& Mining Company of Katanga joint

venture to construct 27 km 120kV

transmission line between the mine site

and Lubumbashi & 300 MVA station

2009

Artumas Tanzania Mtwara: 300MW gas 80%

Aviva Corporation Botswana Mmamantswe: 1000MW coal 100%

Black & Veatch Algeria Arzew: 300MW gas 5% Nov-05

BTU Ventures TunisiaCarthage Power Company Rades II:

471MW gas60%

2002 May-

04**

Candax Energy TunisiaSEEB: 27MW gas combined turbines

bought Centurion Oil stake in Jan-0550% May-03

Caterpillar Power

VenturesTunisia SEEB: 27MW gas combined turbines 50% May-03

Yearbook_2011_new_3 24/5/11 13:48 Page 167

Page 11: Africa Energy Yearbook 2011

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