Released May 21, 2013 | JOHANNESBURG
en
Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The 40 years of off-and-on prospects for the Grand Inga Hydropower Project on Africa's Congo River now appear to be definitely on, following a meeting in Paris last weekend that was organized by the Democratic Republic of Congo (DRC). All the stakeholders, including South Africa, were present.
This meeting, which could result in the development of the first phase of the 40,000-megawatt (MW) project, will be followed by the selection of a developer in 2015 and the laying of the foundation stone in October of the same year. As planned, it will be the largest power project in the world, with the potential to provide power to half the African continent.
The World Bank estimates that when the Grand Inga is fully complete and operating at full capacity, it could provide power for 500 million African households. Issues surrounding the transmission of energy and levels of connectivity have yet to be addressed.
"Inga is a factor for integration, at both the regional and international levels," said the DRC's Minister of Water Resources and Electricity.
Three teams are reported to be bidding for the project: China's Sinohydro (SHX:601669.SS) (Shanghai) and Three Gorges Corporation (Beijing); Spain's Actividades de Construccion y Servicios (OTC:ACAF) (Madrid), Eurofinsa (Madrid, Spain) and AEE (U.S.); and South Korea's Daewoo (KSX:006800) (Seoul) and Posco (NYSE:PKX) (Seoul), with Canada's SNC Lavalin (TSX:SNC) (Montreal, Quebec).
Last weekend's meeting follows a meeting with South African officials in Lubumbashi (DRC) on May 7, when a treaty was signed that covers a power purchase agreement (PPA) in which South Africa will take 2,500 MW of the 4,800 MW output from the first phase of the project, known as Inga 3. The estimated construction cost of this phase is $8.5 billion (at 2011 rates), with total financing requirements, including inflation and financial costs, totaling about $12 billion.
The African Development Bank (AfDB) has been financing base studies and consultants on the project since 2009 and has been joined by the World Bank, the French Development Agency, the European Investment Bank, and the Development Bank of Southern Africa (DBSA).
The Grand Inga site offers a combination of exceptional natural features, with a fall in the river of 100 meters over about 15 kilometers, and a volume rate of 40,000 cubic meters second. Following Inga 3, five more plants will be built to provide a total capacity of 40,000 MW. The World Bank estimates that the Congo has a total hydropower resource potential of 100,000 MW.
For related information, see November 25, 2011, article - Congo River's 40,000 Megawatt, $80 Billion Hydro Project Garners Bank Support.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
This meeting, which could result in the development of the first phase of the 40,000-megawatt (MW) project, will be followed by the selection of a developer in 2015 and the laying of the foundation stone in October of the same year. As planned, it will be the largest power project in the world, with the potential to provide power to half the African continent.
The World Bank estimates that when the Grand Inga is fully complete and operating at full capacity, it could provide power for 500 million African households. Issues surrounding the transmission of energy and levels of connectivity have yet to be addressed.
"Inga is a factor for integration, at both the regional and international levels," said the DRC's Minister of Water Resources and Electricity.
Three teams are reported to be bidding for the project: China's Sinohydro (SHX:601669.SS) (Shanghai) and Three Gorges Corporation (Beijing); Spain's Actividades de Construccion y Servicios (OTC:ACAF) (Madrid), Eurofinsa (Madrid, Spain) and AEE (U.S.); and South Korea's Daewoo (KSX:006800) (Seoul) and Posco (NYSE:PKX) (Seoul), with Canada's SNC Lavalin (TSX:SNC) (Montreal, Quebec).
Last weekend's meeting follows a meeting with South African officials in Lubumbashi (DRC) on May 7, when a treaty was signed that covers a power purchase agreement (PPA) in which South Africa will take 2,500 MW of the 4,800 MW output from the first phase of the project, known as Inga 3. The estimated construction cost of this phase is $8.5 billion (at 2011 rates), with total financing requirements, including inflation and financial costs, totaling about $12 billion.
The African Development Bank (AfDB) has been financing base studies and consultants on the project since 2009 and has been joined by the World Bank, the French Development Agency, the European Investment Bank, and the Development Bank of Southern Africa (DBSA).
The Grand Inga site offers a combination of exceptional natural features, with a fall in the river of 100 meters over about 15 kilometers, and a volume rate of 40,000 cubic meters second. Following Inga 3, five more plants will be built to provide a total capacity of 40,000 MW. The World Bank estimates that the Congo has a total hydropower resource potential of 100,000 MW.
For related information, see November 25, 2011, article - Congo River's 40,000 Megawatt, $80 Billion Hydro Project Garners Bank Support.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
