The uncertainty about whether the Democratic Republic of Congo (DRC) government planned to reverse the Southern African Development Community's (SADC's) mandate over the development of the high-potential Inga hydroelectric projects appears to have been lifted, following the recent Heads of State summit in Kinshasa.
Speaking at the end of the meeting, President Joseph Kabila, who took over as chairperson of the regional body, reportedly reaffirmed the earlier inter-governmental, multi-utility approach to the development of the power projects, which centred primarily on the mighty Congo River, but also included schemes across the border in Angola.
Some estimate the latent hydro potential of the region to be more than 100 000 MW, with the so-called ‘Grand Inga' project alone estimated to be able to produce between 40 000 MW and 50 000 MW. But this potential, which would require billions of dollars in investments, would have to be exploited in phases, with the initial target being the development, also in stages, of ‘Inga 3', which could ultimately yield some 3 500 MW and involve an investment of about $5-billion.
Kabila was reported by the Independent Foreign Service as saying that the project "is still in place, and viable, but will be re-examined so as to involve all the member states".
This has been interpreted as a reassurance that the hydro projects will proceed under the aegis of an expanded set of SADC shareholders - apparently putting paid to the notion of the DRC proceeding alone, in association with an international resources investor.
Kabila's statement has also been read as a reaffirmation of the role of the Western Power Corridor (Westcor) company as the implementation agency for the Inga .
Westcor's role had been brought into question recently when it emerged that the DRC was considering rescinding the SADC mandate and pursuing the project independently, together with BHP Billiton. In fact, only last month Westcor CEO Dr Pat Naidoo indicated that the DRC's decision may have stripped Westcor of its status as implementer and might, therefore, have to be disbanded.
But in an interview with Engineering News Online on Friday, a far more optimistic Naidoo, who had briefed President Jacob Zuma on the project and Westcor's concerns ahead of the summit, insisted that Westcor's role had been restored, but that its shareholding would now be enlarged to include other governments and their utilities.
MORE SHAREHOLDERS?
Westcor's current shareholders include the electricity utilities from Angola, Botswana, the DRC, Namibia and South Africa, but following the recent SADC meeting it was likely that the governments of Malawi, Tanzania, Mozambique, Swaziland, Lesotho and Zambia could also sign up as shareholders.
The Westcor board would meet on September 29 to discuss the new arrangements, as well as to move the initial projects towards implementation.
Naidoo indicated that, given the expanded shareholder base, it might be possible to employ equity finance to advance the initial projects, including work on a 400-kV transmission line from Luanda, Angola, to the Inga site, and from Inga to Kinshasa; as well as the installation of the first two hydropower "machines", which would have a capacity of between 220 MW and 250 MW a piece.
"That would help us begin to generate a cash flow against which we could begin considering the funding options for the larger scheme itself," Naidoo explained, adding that prefeasibility studies had already been completed and the next stage would be to assemble the financial, legal and engineering capabilities needed to implement the project.
The five founding utility shareholders had already indicated a willingness to set aside both capital and skills to kick-start the project and Naidoo expected to begin staffing Westcor's Gaborone, Botswana, office before year-end.
Tenders for the legal, financial and engineering advisers could also be issued over the next few months, with work possibly beginning on the various sites next year.
"We will keep to the commissioning timetable of 2015," he said, adding that the power could begin to flow from the first two machines as early as 2012.
Much of the initial output would be directed towards improving security of supply in the DRC, but South Africa would be a key anchor client and could be drawing up to 3 000 MW from Inga by 2015.
Naidoo also planned to meet with BHP Billiton to resolve recent differences and to assure the resources giant that there was sufficient capacity at Inga to cater for the possible loads created by an aluminium investment, which could also be supplied directly from the DRC utility SNEL.
"We will reach out to them to work with us and not against us and all efforts will be made to ensure their success in the DRC. I will personally call [BHP Billiton Southern Africa chairperson] Dr Xolani Mkhwanazi and start this process," Naidoo concluded.
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