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For many readers of this brochure the Miranda Alliance will not be new. Recent years have seen us grow and expand our coverage and we are now widely recognized as a leading practice, notably in the energy sector, in the countries that we cover.
We have a 250 plus team of lawyers, spread over 17 jurisdictions in five continents.
The Miranda Alliance is however more than just a brand. It is a model to leverage our collective legal expertise across the emerging markets, namely in Africa. It is based on an international mind-set with a local focus. For this reason, our motto is simply “international standards, local knowledge”. It is a model we have been progressing for more than a quarter of a century.
During the decades that we have developed this expertise, the countries where we operate have also grown more important to international investors. Our vast experience has allowed us to evolve, adapt and often facilitate this new reality, enabling us to stay ahead of the curve of other providers of legal services. That is why the Miranda Alliance is often imitated, but never matched.
As you will see from the content of this brochure, we can deliver legal services according to the highest standards. We are the ones you need. You are in safe hands.
welcome
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The Miranda Alliance is a unique international network of law firms covering 15 countries, namely in Africa: Angola, Brazil, Cameroon, Cape Verde, Democratic Republic of the Congo, Equatorial Guinea, France, Gabon, Guinea-Bissau, Macau, Mozambique, Portugal, Republic of the Congo, São Tomé and Príncipe and Timor-Leste; and with liaison offices in the UK (London) and the USA (Houston).
We understand that business transactions and projects in the energy sector have become increasingly more complex and more international. The success of such matters increasingly requires the collaborative effort of lawyers with complementary backgrounds and expertise in different jurisdictions around the world.
Our concept of an Alliance involves the long-term sharing of people, knowledge and information, where lawyers are able to work with a single purpose. Distance and cultural differences are easy to overcome when all those involved share the same fundamental values and methodologies.
Adhering to a common strategy enables us to offer legal services addressing powering the international and local needs of our clients on a truly coordinated basis. We know that proximity matters: like a dam or an electricity grid, being at the right location makes the difference between success and failure. . Our members have the ability to advise the most sophisticated and demanding clients, across a full range of needs, within each of the energy markets in which we operate.
Technical legal expertise is a given across our network. But equally important is our ability to understand the realities of the local marketplace and to provide our clients with practical, business-oriented advice.
Local proximity, a shared outlook, technical expertise and commercial awareness, delivered to international standards. Miranda Alliance is a network like no other.
MEMBERS & inTEGRATiOn
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integrity is more than simply being honest and having high moral values. it is also about billing transparency, having strict conflict policies and practices, and a duty of confidentiality towards our clients’ information and interests to ensure that we never cross any line that might jeopardise their own reputation. The mantra that extends across all our members is, instil confidence in our clients.
Quality of course means being technically excellent and better than the competition. But for us it also means relentlessly standing by our clients’ side, meeting deadlines irrespective of time zones, providing comprehensive advice focused on the client’s actual business need, skipping the legal jargon and delivering value added advice. We do this by continually measuring our own performance through our internal control system thereby ensuring quality assurance for all clients.
innovation to us means more than being different. Our measure of innovation is the ability to enable our clients to do something they otherwise wouldn’t have been able to achieve. it’s about finding real solutions that embody the client’s values and goals we aim to protect and fulfil. From its inception the Miranda Alliance has itself offered an innovative solution, combining in-depth local knowledge with international standards of service and delivery. We are proud that many of the innovative legal solutions we created for our clients are now standard practice in many of the countries we cover.
INNoVATIoNQUAlITYINTegrITY
OUR DnA
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Whilst we believe that the only opinion that really matt ers to
us is what our clients think, we are nonetheless proud to consistently rank throughout the major
internati onal directories among the leading law fi rms in the countries where we operate.
We are praised for the individual experti se of our professionals, the collecti ve experience of our members and the cohesion of our network.
As a full service legal services provider, we are ranked in various categories and practi ce areas, fortunately too many for us to remember. Those that
browse the key legal directories, such as Chambers and Partners, Legal 500 or IFLR1000, will however routi nely see references to the Miranda Alliance, our
member fi rms and professionals.
Beyond our practi ce, our network and its members are also recognized for our collecti ve focus on innovati on and forward thinking. in
recent years we have been named among the Top 50 Most Innovati ve Law Firms by the Financial Times, shortlisted for
the European Law Firm of the Year in the Briti sh Legal Awards and the Internati onal Law Firm of the
Year by the African Legal Awards.
RECOGniTiOn & AWARDS
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PRACTiCE AREAS & inDUSTRiES
Criti cally, we have the industry knowledge and commercial awareness to understand your business fully, regardless of the sector you operate in. We dedicated teams to assist clients in the following industries:
Administrati on & Public Law
Arbitrati on & Liti gati on
Banking & insurance
Capital Markets & Securiti es
Competi ti on
Corporate and Commercial
Employment and Expatriate
Environment
Foreign investment
Government & Public Procurement
intellectual Property
Project Finance & PPP
Tax
Shipping & Aviati on
Pharmaceuti cals
Railways & Transportati on
Real Estate
Shipping
TMT
Water and Waste
Banking & Finance
Beverages and Breweries
Constructi on & Projects
Energy & Uti liti es
Mining & natural Resources
Oil & Gas
Miranda Alliance members off er experti se in a broad range of practi ce areas, including:
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REACH FURTHER
Our London and Houston offi ces provide a bridge to the internati onal markets in which we operate and assist clients and prospecti ve investors in the energy sector planning their operati ons in the jurisdicti ons we cover.
The liaison offi ces provide crucial assistance to Miranda Alliance clients who appreciate the proximity and comfort of being able to meet local teams in a major internati onal hub at the speed of light.
By being able to communicate and collaborate with clients close to their own internati onal headquarters, we hope to make a big and complex world seem smaller and more accessible.
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Angola’s major hydroelectric power plants include Cambambe, with a current capacity of 280 MW and which in the future is expected to generate 960 MW and Capanda, with a current capacity of 520 MW. new projects like the HPP Laúca (that will produce up to MW 2,060) are currently in place and many others for production, transmission and distribution of electricity are planned.
Various gas and diesel thermoelectric power plants have been installed, such as Malembo, Kilevaa and Lobito. Rural electrification, as well as small hydro projects, such as Chiumbe-Dala, are also considered as key elements in the Action Plan. The program “Aldeia Solar” (Solar Village) is an initiative being implemented in order to provide electricity by means of small solar systems in remote areas.
Besides the Ministry of Energy and Waters, the main players in the sector are the three concessionaries, PRODEL, E.P. (Empresa Pública de Produção de Electricidade, E.P.), dedicated to electricity production, RnT, E.P. (Rede nacional de Transporte de Electricidade, E.P.), dedicated to electricity transmission, and EnDE, E.P. (Empresa nacional de Distribuição de Electricidade), dedicated to electricity distribution. Finally, it is also worth mentioning the regulatory entity, iRSE (instituto Regulador do Sector Eléctrico).
Private investment in the sector is allowed and welcomed and a fairly comprehensive specific legal framework has been enacted. in fact, amendments to the cornerstone statute - the General Electricity Law - are currently being discussed in order to (among other goals) attract private investment.
Several steps have been taken so far, there is clearly unexplored electricity potential and investors are being invited to take part in the important evolution that is expected for this sector in the short and long-term.
elecTrIcITY SecTor Country overview
AnGoLA
The development of the electricity sector has been identified by the Government as critical for national economic growth. in fact, this sector plays a crucial role in the global objectives defined in “Angola Strategy 2025”. Old structures, poor quality of service and an unequal supply of electricity within urban and rural areas, are some of the main problems the country is facing in terms of powering electricity. According to publicly available information, Angola is barely exceeding a 30% electricity access rate and has an installed capacity of around 3 GW.
The Government has estimated an investment of more than USD 20 billion in the electricity sector during the 2013-2017 period (according to the Action Plan for the Energy and Water Sector for such period), being USD 12,4 billion directed to the construction of large dams and enhancement of thermal power production and USD 5,9 billion allocated to transmission and distribution grids.
According to recent forecasts, by 2017 Angola´s electric power system should be producing 5 GW of power and by 2025 the figures should be 9.9 GW. new renewable energy projects - especially biomass, solar and wind power - will provide a capacity of 800 MW.
The electricity sector is currently comprised by 5 main independent systems, which are based essentially on hydroelectric power: the north, Center and South systems, and two isolated systems, the Cabinda and East systems.
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CAMeroon
2015 ended with the electricity company, AES Sonel, officially renamed as Eneo Cameroun SA (Energy of Cameroon) on September 12, 2014. The name-change followed the British private equity investment firm, ACTiS LLP (ACTiS), acquisition of all assets of the American company, AES, in Cameroon’s electricity sector. AES SOnEL which before ACTiS’s acquisition was managed as one entity (though composed of 3 different companies) was divided for management purposes to two entities. ACTiS assumed the management of EnEO whilst it gave the KRiBi POWER DEVELOPMEnT COMPAnY (KPDC) and the DiBAMBA POWER DEVELOPMEnT COMPAnY (DPDC) which are both involved in electricity generation to be managed by its wholly owned affiliate GLOBELEQ. KPDC (216 MW) and DPDC (86 MW) are gas and oil powered generation plants based in Kribi and Dibamba respectively. in September 5, 2014, Globeleq announced the creation of Globeleq Cameroon Management Services (GCMS), a company registered in Cameroon that will “supervise the management” of KPDC and DPDC
The country’s combined installed electricity generating capacity of 1,400 MW is largely based on hydropower (60%), which fluctuates greatly during the drought season, forcing Cameroon to rely on expensive emergency thermal units. The government is currently increasing in gas-fired power plants in Kribi and in the process of converting a number of (heavy fuel) thermal plants to gas-fired plants due to the availability/discovery and exploitation of gas reserves on the Bomono Gas Fields.
There are on-going infrastructure devel-opments to increase hydropower facilities in Lom Pangar, Mem Vele and nachtical which might not become fully operational before 2017, but the government has also embarked on delivering Solar Power pro-
jects, because of its shorter timelines and its long-term predictability.
The Cameroon government’s long-term Energy Sector Development Plan (PDSE 2030) aims for a 75% electrification rate by 2030 with the support of a variety of iPP investments:
• Other sources of commercial energy in Cameroon are Petroleum and Timber.
• 90% of the population use traditional solid fuels in the residential sector for heating, light and cooking.
• Between 65% and 88% of the urban population has access to electricity. Only about 14% of the rural population has access to electricity. Electricity supply is unevenly distributed.
• no connection to neighboring countries. There separate grids: the northern interconnected Grid (niG), the Eastern isolated Grid (EiG) and the Southern interconnected Grid (SiG).
• Cameroon is a net exporter of energy due to its oil reserves.
CAPe verDe
Due to the limited primary energy resources and with a national electricity system comprised by different power grids on each of the islands, each is based on thermal power stations running on heavy fuel or diesel, Cape Verde has one of the highest electricity tariffs in the world.
Unable to cover the high costs of producing electricity, strongly impacted by fuel price volatility and heightened by high costs of handing out small portions of fossil fuels between the islands, Cape Verde Government has set out an ambitious plan in 2008 to reduce the country’s dependence
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on imported fossil fuels by increasing the production from renewable sources for more than 100 MW, with investment of 300 million euros. The aim of this plan is to achieve 50% penetration of renewable energies in Cape Verde by 2020, and have at least one island 100% supplied by renewable energies. The latest studies from the Government, however, set out a more optimistic view aimed to achieve a 100% penetration rate by 2020.
To achieve these objectives, Cape Verde’s national strategy for the energy sector is (i) to develop a more efficient, reliable and affordable electricity generation and distribution systems, (ii) improve quality performance, and (iii) achieve financial self-sufficiency in the electricity sector in the medium term.
As such, reforms are being carried out in the sector through private-sector investment and government-supported project. Part of these are the construction of two solar photovoltaic power plants in the islands of Sal (2.5 MW) and Santiago (5MW), financed by a credit loan from Portugal, and the largest wind power project in Africa and first renewable energy public private partnership in sub-Saharan Africa, between the Government of Cape Verde, infraCo and Electra, funded by the European investment Bank and the African Development Bank, aimed to construct, operate and maintain onshore wind farms on the islands of Santiago, S.Vicente, Sal and Boavista with the capacity to generate more than 28 MW, which has been recently implemented. Few other projects are also planned.
As a result of the mix of wind and solar energy developed, Cape Verde accounted for 24 percent of it generating capacity and 21 percent of all electricity generated in 2012, being close to achieving its ambitious target of producing 25% of electricity from local renewable energy sources.
The implementation of the renewable energy plan requires, however, an important investment in the electric grid to ensure the security and operation of the system. Bearing this in mind, a project that seeks to improve the quality of electricity supply on main island of Santiago (capital of the country) and an Electricity Transmission and Distribution network Development Project, funded by the Japan international Cooperation Agency and the African Development Fund and the Government of Cape Verde, is currently ongoing. The latter concerns 94% of the total population living in six of the islands (Santo Antão, São Vicente, Sal, Santiago, Fogo and Maio) and seeks to contribute to upgrade distribution networks and the overall rate of access to electricity from 88% in 2010 to 98% by 2018 in urban areas, and will also facilitate the electrification of same fifty localities in rural areas and increase the rate access of 54% to 98% in 2018.
The components include the construction of (i) 349 km of 20kV underground and overhead transmission lines, (ii) 177 MV/LB sub-stations, (iii) 381 km of LV network, the installation of 5163 public lighting units, (iv) replacement of 26 592 faulty meters and connection of 5 000 new subscribers, of whom 1 729 in rural areas, (v) installation of 3 SCADA systems and (iv) supply of 30 service vehicles, operation tools and equipment.
The project will also enable the Public national Electricity and Water Company ELECTRA, which holds the monopoly over electricity transmission, distribution and sale of electricity and desalination of water in Cape Verde, to deal with the demand induced by increased economic activity, population growth and energy consumption for commercial (38%) and domestic uses (almost 50%), and to continue seawater desalination and distribution of drinking water to the population.
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The investments of Cape Verde in renewable energy are also aimed to build capacities on different technologies of renewable energy such as solar thermal, photovoltaic, wind, maintenance and also energy efficiency, and to export them to the ECOWAS region. As of 2010, Cape Verde hosts the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE), and recently (March 2015), a training Centre of Renewable Energy and industrial Maintenance (CERMi) built by the Government of Cape Verde, has been officially inaugurated.
DeMoCrAtiC rePuBLiC oF tHe ConGo
in the DRC, although there are no recent official statistics available on this matter, the national electrification rate is deemed to be around 15% (60% in the Kinshasa area), less than 5% if we only consider the rural population (which represents more than JEAntwo third of the global population of the country).
The DRC national energy supply is mainly provided through biomass (more than 85%), the rest from electricity and petroleum products.
Congo River’s energetic potentials is evaluated about 774.000 GWh/year (it said that people are currently using approx. 5% of said potential).
Around 90 power plants have been identified in the DRC (among which 44 are hydraulic power stations, 42 are thermal power stations), slightly less than half of these are owned by the national Electricity Company (Société nationale d’Électricité). The majorityof these power plants, have not been operating to full capacity for a while, or are even at shutdown, due to the disrepair of infrastructure and lack of maintenance.
The DRC is currently looking for investors, including through public-private partnerships, not only to rehabilitate said sites but also to expand its facilities (e.g. over 300 potential sites have been listed for the construction of micro-hydroelectric power plants). More information can be provided on demand by facilitating meetings and working groups with the relevant DRC officials and decision makers.
Since July 2014 there is a special framework applicable to the electricity sector in the DRC.
eQuAtoriAL GuineA
Although being subject to a profound transformation in recent years, the electricity sector in Equatorial Guinea (“EG”) still has several hurdles to overcome, such as, the existence of mainly outdated equipment, the need for new infrastructures and a legal framework which is a mixture between the archaic legislation from the Spanish era with legislation enacted in the post-independence period. Moreover, and since EG is a member of the CEMAC, the electricity sector legal framework also includes regional legislation.
Sociedad de Electricidad de Guinea Ecuatorial S.A. (“SEGESA”) and the Ministry of Mines, industry and Energy (“MMiE”) are the entities responsible for running the EG electricity sector.
The EG Government in its national plan and the CEMAC have identified the development of the electricity sector as one of their major goals. The CEMAC in its regional economic program for 2009-2025 aims to promote and achieve a joint development of the members’ electricity infrastructures.
in order to achieve the goal of national electrification, EG Government has negotiated and executed several MoUs with different international companies. Some
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projects were already implemented and there are over 20 projects ongoing and being negotiated, for instance:
• A MoU with Sinohydro Corporation for the conduct of a feasibility study on the development of a hydroelectric plant on the Wele River;
• The construction by Sinohydro of the 120 MW Djibloho hydroelectric plant (which has boosted EG’s power capacity), as well the implementation of several electric power projects in Mongomeyen and the mainland city of Bata;
• A MoU with China Machinery Engineering Corporation for the conduct of a technical and financial viability study to construct a new combined cycle 100 MW power plant in the city of Kogo;
• A MoU with China Machinery Engineering Corporation to conduct a technical and financial viability study to build street lamps and related public lighting infrastructure in the city of Mbini; and
• The signature of a joint venture contract between SEGESA HOLDinG SA and Equatorial Guinea ASPi Group, on the construction and operation of a supply logistical center for electrical equipment.
Despite this effort, some parts of EG are still relying on domestic generators, such as small gasoline and diesel-powered generators, and used as backup power sources to provide electricity to fight the existing inefficiencies of the national grid.
EG’s Electricity power generating capacity stood at 15.4 MW in 2003, of which 20% was hydroelectric and 80% conventional thermal.
Currently, in the continental region, the main source is hydroelectric power. On both
Bioko island and the mainland, electricity is generated by a combination of thermal and hydroelectric plant. The Government plans to reach a capacity of 700 MW in 2015.
Equatorial Guinea is estimated to have 2,600 MW of hydropower potential being half of this number possible to exploit on an economic basis.
GABon
Gabon has a current production capacity of 390 MW. in 2012, electricity production consisted of a 40/60 split between hydro and fuel power generation. Biomass only accounted for around 2% of the total energy production. national consumption demands are satisfied through local production, and Gabon neither imports nor exports any electricity.
Primary hydroelectricity dams are located at Tchimbele and Kinguele on the M’Bei river as well as Poubara on the Ogooue river.
Despite a comparatively high electricity access rate of 83%, Gabon has started to upgrade its electricity production and distribution facilities since 2012 to face a high rise in demand, which is growing by up to 5% every year. The government implemented a six-year electricity plan in 2010. in total, 2.8 billion dollars are to be invested in the water and energy sectors. The State’s objective is to increase electricity power production to 1200 MW by 2020, mainly through gas production, where the potential is almost 40 billion cubic meters. The government has high hopes for gas power generation, notably in the nkok special economic zone.
Gabon also has a total hydro potential of 5000 MW which the government aspires to harness through the construction of ambitious hydroelectricity projects.
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Ongoing projects include the African Development Bank funded Coder Hydropower project, which consists of the construction of two hydroelectric plants in ngounie province and northern Gabon, and the completion of the Grand Poubara dam.
A future project for the interconnection of electricity networks in Cameroon, Gabon and Equatorial Guinea are also currently being discussed by the Economic Community of Central African States (CEEAC).
Gabon is among the top five oil producing nations in Sub-Saharan Africa. Although oil production started declining since peak production in 1997 (370,000 bb/day), the drop has slowed through the exploitation of mature fields and deepwater reserves. Oil production reached 240,000 bb/day in 2014. The legal framework applicable to the oil sector underwent a major overhaul in September 2014 through the adoption of a new Hydrocarbons Code, and a new licensing round has been announced for September 2015.
Gabon’s electricity sector is controlled by the Société d’Electricité et d’Eaux du Gabon (SEEG), which is 51% owned by French group Veolia. A specific regime governs the production, transport and distribution of energy in Gabon.
GuineA-BiSSAu
Guinea-Bissau is located in West Africa bordering the north Atlantic Ocean between Guinea and Senegal. The total area is 36,125 km² with approximately 28,000 km² constituting the continental part. Offshore, there are about sixty small islands in the archipelago, being Bijagos the most important one.
The electricity is currently being developed by the Guinea Government and other
international Organizations. Also, there’s specific legislation concerning the electricity matters.
The electricity production of Guinea-Bissau is thermal-based and is based on a major thermal power plant in Bissau (with a capacity of 17.5 MW) as well as on secondary productions centre (with a capacity of 17.5MW) operating in the centre of the country.
The Guinean Public Company of Electricity (Empresa Pública de Electricidade e Aguas de Guiné-Bissau – EAGB”) is responsible for the production, transport and distribution of electricity and water.
Guinea-Bissau has an average solar radiation of 4.5 to 5.5 kWh/m2/day, over an average of 8 hours per day (3,000 h of insolation per year). in spite of this promising potential, untilnow only 450 kW of photovoltaic (PV) installations have been installed, and are used for communication networks, water pumping stations and house lighting. The government plans to significantly increase the utilization of PV in order to cover up 2% of the overall energy consumption by 2015.
Gambia River Basin Organization (OMVG) is a sub-regional organization that is developing programs in the energy sector in Guinea Bissau, Gambia, Guinea Conacri and Senegal. The river basins of those countries provide an opportunity for power production. The primary objective of this project is to build cooperation and regional integration in the energy sector by constructing renewable and low-cost energy to the four countries. This project is financed by the World Bank. in particular, the World Bank will provide Guinea Bissau a loan (roughly 78 million euros) to install an high voltage network line.
international Financial Corporation (iFC - member of the World Bank Group), signed an advisory mandate with the government of
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Guinea-Bissau to structure and implement a public-private partnership scheme to improve the performance and service delivery of the EAGB. The iFC project team is working closely with counterparts at the World Bank, which is implementing and financing a Multi-Sector infrastructure Rehabilitation Project.
The nGO - TESE Sem Fronteiras along with Bambadinca’s Development Community Association (ACDB), the General Directorate of Energy, the nGO DiVUTEC and the University of Lisbon started a project that aims to ensure quality, reliance and sustainability access of electricity to the center of semi-rural Bambadinca using renewable energy sources. This project is supported under the GEF funded UniDO-ECREEE project “Promoting Renewable Energy investment in the Electricity Sector of Guinea Bissau.
in 2013 the north American company Suntrough Energy began the construction of the first solar power plant in the area of Ponta Gardete (city of Biombo).
MoZAMBiQue
Mozambique is endowed with abundant natural energy resources which range from fossil fuels (natural gas and coal) to renewables (solar, hydro, wind, geothermal and biomass). Energy projects play a fundamental role in the country’s economic development and industrial expansion, leading to an increase of demand for electricity.
This, aligned with the needs of the Southern African region as a whole, the geographical positioning of Mozambique, both as a route to the countries inland served by railways and pipeline systems, as well as an interface between the Southern African Development Community SADC and the Eastern African
Community EAC, grants the country with a privileged, strategic position and role in the regional energy sector and with an exciting opportunistic environment for foreign investors.
The Mozambican power sector was liberalised in 1997 allowing for third parties from the private sector to enter in the generation, transmission and distribution markets. The participation of the private sector is ensured through the Electricity Law while at the same time guarantees the use of energy resources and the State’s interests protection.
The main national electrical grid is owned and operated by Electricidade de Moçambique (EdM), a government-owned, vertically-integrated, and responsible for the generation, transmission and distribution of electricity in the national grid. EdM does not control all of the domestic transmission and distribution network, as smaller regional grids are controlled by the Ministry of Energy and Mineral Resources (until January 2015 were two separate entities), through district governmental bodies.
The power sector has a substantial potential of growth in Mozambique. The electrification rate in the country is still approximately 12% and in its national strategy against poverty (PARPA), the Government has focused on prioritising the extension of the national grid to rural areas, targeting 20% of the country’s electrification by 2020 and estimating a 8300GWh of power consumption by 2030. The Government intends to fund the required power infrastructure mainly from foreign direct investment supplemented by local investment.On the international stage, the Mozambique transmission grid is currently interconnected with South Africa, Zimbabwe and Swaziland which is expected to be further extended.
Against this background, Mozambique’s Government Energy Sector Strategy 2009 has evaluated different options for power
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generation in the country and has launched several major initiatives in the electric power sector, which includes:
• Developing of the Centre-South Transmission Backbone Project (known as CESUL), essential to facilitate the transmission of power generated in Tete province to Maputo and South Africa;
• interconnecting the national power systems of Mozambique and Malawi, allowing the connection of the hydropower systems installed in Cahora Bassa and the 282MW in the Chire river, in Malawi;
• Developing the potential of the country’s greatest hydropower plants, the Cahora Bassa South (2075 MW), the central north (1245 MW) and the Mphanda nkuwa (2400MW), both located on the Zambezi River basin. At the same time, the development of smaller hydropower projects with generating capacity ranging in between 120MW and 25MW, located in the mountain terrain and rivers in Manica, Tete and niassa provinces;
• Ensuring the use of part of the natural gas produced in the country in the thermoelectric power station in Moamba;
• Encouraging investment in solar, wind, biofuels and biomass power capacity through the Renewable Energy Policy launched in 2011.
Furthermore, other projects related to electric power supply and demand are currently under development in the country. For example, the discovery of a 160TCF gas reserve offshore Mozambique led to the development of Offshore Area 1 and Offshore Area 4, carried out through a consortium operated by Anadarko and Eni, respectively. At present, both companies are further planning a joint onshore LnG liquefaction facility, in Palma, Cabo Delgado province. Another relevant
project under development is the Kuvaninga Energia Project, reported to be a gas-fired power project, in the Chokwé region.
Ultimately, all these projects are key contributors to a significant expansion of Mozambique’s economy, to promote and efficiently utilize the natural resources and to have a strong and direct impact on growth of electricity demand.
PortuGAL
The basis, principles and organization model of the Portuguese electricity sector have been set out by Decree-Law no. 29/2006, of 15 February and Decree-Law no. 172/2006, of 23 August. The Portuguese electricity system is divided into six major components: (i) generation; (ii) transmission; (iii) distribution; (iv) supply; (v) operation of the electricity market; and (vi) logistic operation for the switching of supplier.
Electricity generation, supply and management of the organized market activities are competitive and only require compliance with a licensing or authorization process. As a result, the number of electricity generators in mainland Portugal has increased significantly. On the other hand, the transmission and distribution activities are subject to the award of public service concessions.
Electricity is distributed in the national Distribution network, consisting of high, medium and low voltage infrastructures.
The organised electricity markets operate freely but are subject to authorization from the Portuguese state. Portugal and Spain have been integrating their electricity markets into a single iberian Electricity Market (MiBEL).
There are approximately 6.2 million electricity consumers in mainland Portugal.
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in 2013, electricity consumption stabilised at 49.1 billion kWh.
The main sources of electricity generation in Portugal are thermal power plants, wind farms and hydroelectric power plants. Electricity production increased 12.4% and generation from hydro plants more than doubled compared to 2012.
in 2013, the production of renewable energy increased by 16.4% compared to 2012, representing almost 60% of the total energy produced in Portugal.
Renewable energy is produced through various technologies such as hydro and wind power, as well as other emerging technologies such as photovoltaic, cogeneration and biomass.
Extra high voltage electricity transmission (150, 220 and 400 kV) is carried out in the national Transmission Grid under a concession granted by the Portuguese state in the form of a public service provided exclusively by Rede Eléctrica nacional (“REn”).
Electricidade de Portugal (“EDP”) is a major player in the Portuguese electricity sector, ensuring most of the generation, acquisition, transmission, distribution and sale of electricity in mainland Portugal. it serves more than 5 million customers. EDP takes part in other independent electrical power production projects such as cogeneration and biomass power plants.
REn operates the national Transmission Grid, connecting generators to consumption centres. The national Transmission Grid delivery point feeds the Portuguese distribution network that supplies the majority of final consumers. REn is the only electricity transmission player in Portugal under a concession agreement with the Portuguese state.
There are five regulatory authorities in Portugal: (i) the Ministry of Environment,
Spatial Planning and Energy; (ii) the State Energy Department (“DGEG”); (iii) the Energy Services Regulatory Authority (“ERSE”); (iv) the Environmental Agency (“APA”); and the Competition Authority (“AdC”).
rePuBLiC oF tHe ConGo
As of 2003, the Société nationale d’Electricité (SnE) – Congo national electricity provider – was the sole electricity provider since 1967. it resulted from the merger of two former colonial electricity companies, the UnELCO and SEEE.
in 2003, Laws no.15-2003, 16-2003 and 17-2003 created (i) the Electric Sector Development Fund (FDSEL); (ii) Regulation Agency on the Electricity Sector; and (iii) national Agency of Rural Electrification (AnER) thereby opening the electricity sector to more competition.
The Congo uses hydroelectric (60%) and thermal (40%) generating facilities to provide all of its electrical power. Congo has now a total power capacity of 600 MW provided from:
• The Moukoukoulou dam (74 MW);
• The imboulou dam (120 MW);
• The Djoue dam (15 MW);
• The Brazzaville thermal plant (32 MW);
• The Congo Gas Power Plant in Pointe-noire (300 MW);
• The Djéno Gas Power Plant (50 MW).
We count several current hydroelectric projects:
1. Chollet dam - a new hydroelectric chollet dam on the river Dja, between Cameroon and
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Congo that will have a capacity of 600 MW. Total cost is estimated between XAF354 and 670 billion. Development will be made by Chinese company Sinohydro. Both governments signed a memorandum of understanding on April, 8 2015 on the organization and functioning of the inter-State steering committee for the dam construction. The work of the construction is expected to start on november 2018. Energy produced by the dam will be used to feed Cameroon, Congo, CAR and Gabon.
2. Liouesso dam - The Liouesso dam construction, located about 120 miles from the city of Ouesso in the northern region of Sangha by Chinese constructor, China Gezhoula Group Company Ltd (CGCC), shows a 60% advancement rate. Upon completion, the hydroelectric plant is expected to supply the city of Ouesso and surrounding areas in electricity.
3. Sounda dam - the Sounda dam is a half-a-century old project to be built in the Kouilou department (South Congo) which could end up being Africa’s most important hydroelectric dam and make Congo an electricity exporter. its expected capacity will be 1000 MW and it would create an 1800 km2 artificial lake. As of now, the government signed a financing agreement with the international Finance Corporation (iFC) and work construction is to be undertaken by Chinese company Golden nest international Group and China Railway Group Ltd.
SÃo toMÉ AnD PrÍnCiPe
São Tomé e Príncipe, through the public Water and Electricity Company (Empresa de Água e Electricidade), has the capacity to produce only 12 MW, generated by 5 thermoelectric power plants and 1 mini-hydric plant.
The urge for investment in the country is clear, particularly when considering the energy demand of 15 MW (which exceeds
production), the poor conditions and lack of maintenance of aforementioned power plants and the inexistence of self-consumption. The Government intends to restructure the public Water and Electricity Company, open its share capital to private investment, rehabilitate the transmission and distribution grids and encourage renewable energy projects.
According to recent news the United nations Program for Development (UnPD) will finance the construction of 5 mini-hydric plants intended to produce 5 MW of electric energy in Príncipe island. USD 6 Million will be made available and the ultimate goal is to replace thermoelectric energy with hydroelectric energy within said island.
As of 2013 the Government has elected the approval of the Electricity Act as one of its priorities, although no specific legislation was yet enacted. However, in the past, contracts for electricity production have been entered into between the State and private investors.
tiMor-LeSte
The electricity sector in Timor-Leste (“TL”) is inadequate, small and fragmented. As several Un reports state, much of the electricity infrastructure was severely damaged during the period of civil unrest in 1999 so, this sector has been identified by the TL Government as one of the main national priorities for the 2015-2017 Legislature (vide Program of the Vi Constitutional Government below).
Pursuant to the national Strategic Development Plan 2011-2030, the goal to construct a national power grid which shall link all TL’s cities shall be completed in 2015. Furthermore, in 2015, it is estimated that TL’s generation capacity shall be of 300 MW and the Generated Energy of 385 (GWh).
The electrification rate estimates shall be of 75% in 2015 and, of 100% in 2018.
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nevertheless, the electrification of rural areas still remain one of the biggest challenges of TL operating said areas on 58 isolated grids (11 on a district level and 47 on the sub-district or village level), all equipped with diesel generators. The latter are from time to time inoperative, due to lack of maintenance or fuel and the illumination in rural areas are still dependent on kerosene, plant oils and batteries.
in 2013, there were approximately 118.762 customers in TL, from which 105.522 were connected to the national power grid, 13.000 to the solar and 240 to the Micro-Hydro.
The State considers the electricity sector as a major factor to boost the development of most important activities of TL, such as, mining, brewery, the food industry, refinery, supply base and LnG onshore, cement factories, tourism, among others.
The electricity sector is run by Electricidade de Timor-Leste (“EDTL”), TL’s national agency, and by the Ministry of Public Works, Transport and Communications.
Although, the power system still relies mainly on petroleum, the Government has incorporated in their Strategic Development Plan some alternative energy sources, including, solar, wind and geothermal, which, later on, shall be assimilated into the national grid. The targets of the Government for 2017 are as follows: 1.25 MW as regarding Solar energy and 42.6 MW as Wind power.
The Government has spent more than 1.4 billion dollars in public infrastructures relating to the national electrification measures implemented in TL. The construction of two steam power plants combined with the high and medium voltage grids has represented more than two thirds of the expenses connected to infrastructures in TL.
elecTrIcITY SecTor reLevAnt exPerienCe
• Advising a Portuguese company on the Luapasso hydroelectric project, including drawing-up the contractual structure and supporting the negotiations (Angola).
• Advising an international law firm on the Mozambique Backbone (CESUL) Project regarding the legal framework applicable to electricity transmission, network interconnection, and power tariffs.
• Advising a Spanish energy company on the acquisition of various wind-farms, including conducting the legal due diligence in this connection (Portugal).
• Advising several international lenders on the legal requirements for the commissioning, construction and operation of electric lines (Congo).
• Assisting a UK company in connection with the structuring and operation of a biofuels project (Mozambique).
• Advising a Chinese bank on financing the acquisitions of various photovoltaic solar plants, including conducting the legal due diligence analysis regarding licenses, feed-in tariff regime, and land issues, among others (Portugal).
• Advising a Portuguese company on the implementation of a hydroelectric power plant, including advice on the contractual structure and contract negotiations (Portugal).
• Assisting a consortium of international banks in the US $1 billion financing of the Republic of Mozambique’s acquisition of a Portuguese hydroelectric plant .
• Advising a provider of electric services on its transformation from public company to limited liability company (São Tomé e Principe).
• Preparing a detailed report for a major Swedish power company on the Angolan electricity sector (Angola).
• Advising multilateral organization on financing a photovoltaic power station design, construction and operation project (Portugal).
• Advising a leading chemical company on the legal framework and contractual structure of a prospective fertilizer plant project (Angola).
• Advising a group of Portuguese companies on the implementation of a bioethanol plant, including advising on the licensing procedure and the acquisition of the property for implementation of the plant, negotiating and incorporating the relevant joint venture company, and drafting and negotiating the related agreements (Portugal).
• Advising a British energy company on its acquisition of mini-hydro generation capacity, including conducting the legal due diligence in this connection (Portugal).
• Advising a Portuguese company during the tender process for the concession of a combined-cycle electricity plant (Portugal).
• Preparing a legal feasibility study regarding the construction of power lines between Angola and a neighbouring country.
• Assisting a Portuguese association that represents the vast majority of players in the renewables sector in connection with the analysis of the national energy policy, including conducting a comparative analysis of the national legal framework and the
EU energy and environmental regulation and drafting the legislation on licensing of renewable energy projects and on tariffs applicable to producers under a special regime (Portugal).
• Advising a U.S. utility company on the implementation of a temporary power solution on a fast-track basis, on the negotiations of two sales and purchase agreement with an Angolan State-owned electricity company and on the legal structure to establish a legal presence in Angola.
• Assisting the promoters of the new natural gas-fired power plant with the preparation and negotiation of all project documents, including (a) gas purchase agreement; and (b) power purchase agreement with Electricidade de Moçambique, E.P. (EDM) (Moçambique).
• Advising a South African company on the rehabilitation project of the electric distribution network in Huambo and the recovery of a thermoelectric generation centre (Angola).
• Advising a leading Spanish utility company on its power sales agreements with end consumers and its contracts with sales agents, including advise on all relevant regulations (Portugal).
• Advising a Portuguese company in partnership with the Angolan Government with respect to the construction of two hydroelectric projects.
• Advising a norwegian company on the applicable legislation in connection with a biofuels project in Angola.
• Drafting several Concession Decrees (Angola).
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• Advising a Brazilian company on the negotiation of the concession documents for the construction and operation of a thermoelectric power plant as well as the relevant power purchase agreement (Angola).
• Preparing a legal report for a major Spanish power company in connection with a potential carbon capture and storage project, including a full review of all laws and regulations applicable to the licensing and construction of the project (Portugal).
• Advising a South African company in connection with the renegotiation of tariffs for the supply of electricity to an aluminium smelter (Mozambique).
• Representing a group of Australian companies in the implementation of Portugal’s first commercial wind farm, including advising on the licensing procedure, negotiating and incorporating the relevant joint venture company for implementation of the project, and drafting and negotiating the related agreements.
• Assisting a bank consortium in preparing a decree on Cahora Bassa’s hydroelectric plant, implementing tax and special accounting procedures on financing, and permitting its purchase by the Mozambican Government.
• Representing a Portuguese consortium in the first phase of a 1500 MVA wind farm tender offer, including analysing the tender offer program, preparing the proposal, and drafting and negotiating several related contracts (Portugal).
• Advising an international developer on the legal structure of an investment project related to the construction and operation of an integrated industrial complex, consisting of a smelter, a shipping port, a hydroelectric plant, and the associated
infrastructures for the distribution of high-voltage electricity (Angola).
• Assisting a natural gas supplier in drafting various agreements with Portuguese consumers and agents (Portugal).
• Advising a Portuguese company in connection with the project financing of various wind farms, including drafting the relevant land sales and purchase agreements, obtaining the relevant industrial and environmental authorizations, and drafting and negotiating the relevant financing and service provision contracts (Portugal).
• Advising an electricity company on the issues regarding the setting-up and financing of an electric high-voltage line to supply major consumption zones (Mozambique).
• Advising a British company on the legal framework regarding a biofuels project in Portugal.
• Advising several Portuguese companies regarding the legal regime applicable to renewable energy projects (Portugal).
• Advising a multilateral financial institution in connection with the creation and setting-up of a private sector participation scheme in Guinea-Bissau’s electricity and water company (“EAGB”), including conducting the legal due diligence review in this connection.
• Advising a Portuguese investment bank’s bid for financial assistance to the Ministry of Energy in selecting the lead investor for a coal-fired power plant in connection with a large coal mining project (Mozambique).
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Contacts
CAtArinA távorAPartnerHead of Energy
riCArDo ALveS SiLvAPartnerCo-Head of Energy
nuno CABeçADASPartner
tâniA CASCAiSPartner
CHinDALenA LourençoPartner
