The Japan-Africa Business Forum 2014 Tokyo, June 10 – 11, 2014

THE GRAND INGA PROJECT

presented by

Conrad IBALANKY EBU LEY Director - Studies, Planning Norms and Standards Department

Société Nationale d’Electricité (SNEL sarl) - www.snel.cd TABLE OF CONTENT

• DR Congo and Inga site • Hydroelectric potential • National power grid by 2035 • History of the site development studies • 2013 feasibility study : main results • Development scheme • Inga 3 channels vs open channel : main findings of the comparison • Main aspects of the new phased development • Demand components • Inga 3 power plant • Progressive development of Grand Inga • Impacts of Inga 3-LH • Power highways from Inga site DEMOCRATIC REPUBLIC OF CONGO AND INGA SITE

Tshela Kinshasa

INGA Mbanza-Ngungu

Moanda Boma Bosobolo 10 HYDROELECTRIC POTENTIAL . Ango Zongo Mobayi Bondo Niangara Faradje Gbadolite. Libenge Dungu M’zoro Legend Gemena Dingila Businga Bambesa Rungu Aru Zulu-Karawa Poko Water falls or rapids 07 Studied hydroelectric project Aketi Isiro Watsa Kungu Bumba Buta 11 Existing SNEL power plants Main cities Budjala Lisala 12 Mahagi . Wamba Djugu Existing private power plants Other towns Bomongo Banalia Soleniama I et II Bongandanga Mambasa Basoko Irumu Bunia Potential 13 Site Basankusu Yahuma 14 Bafwasende Budana (MW) Bolomba Isangi 15 Beni 19 Befale Tshopo 16 Butuhe 20 Djolu Kisangani . 17 01 Grand Inga 43.800 21 Mbandaka 18 22 02 Inga IX 1.500 Boende Wanie-Rukula .Butembo . Lutunguru 03 Matadi 12.000 09 23 Lubero Bokungu Ingende Ubundu Lubutu 04 Pioka 22.000 24 26, 27 Opala 05 Zongo II 150 Bikoro Nyabiondo 25 Rutshuru Walikale 06 Kitona 12 Kiri Ikela Ruanguba Masisi 07 Bamba 12 Monkoto Punia Belia 28 Mokotos Kalehe .Goma 08 Kakobola 10,5 Inongo Lulingu 09 Ruki 5,3 Ambwe Kabare Lomela Moga Bukavu Ruzizi I 10 Mobayi II 17,5 Kutu Lutshurukuru I et II Walungu . 29Ruzizi II (SINELAC) Shabunda 30 11 Lepudungu 3 Mushie 31 Mwenga 33 Bandundu Katako - Kindu . Mungombe Gombo 12 Nepoko 134 Dekese 60 Kombe 34 32 13 Bengamisa 15 . Kole 35 Pangi Kampene Uvira Bagata Oshwe 14 Babeba 20 - 50 Lodja Kibombo Mangembe 15 Tshopo II 17 36 Zongo Kinshasa Ilebo Kasongo 16 Kisangani 460 Masimanimba Bulungu Lubefu Fizi Piopio Lusambo 37 17 Wagenia 20 - 50 Tshela Luozi Kenge Mweka Seke - Gondi 38 18 Wanie Rukula 530 - 688 Banza 04 05 Sanga Kikwit Idiofa Luebo . Demba Lubao Kongolo 19 Semliki 28 02 06 Kyimbi 40 01 Inga I-II Mbanza. - 08 Dimbelenge 39 20 Ruwenzori I 6 Ngungu 07 Gungu Kananga Moanda 03 Mpozo . Popokabaka Tshikaji Mbuji Mayi 21 Ruwenzori II 6 Boma .Matadi Kimvula . Kabinda Kalemie . Kasanza 58 Tshala Kabalo Nyunzu 22 Kisalala 7,5 Feshi Tshikapa 56 Lubilanji I-II Mani Kasongo - 57 55 23 Muhuma 25 Lungudi Kazumba Lunda Tshimbulu Gandajika 59 Manono 24 Mugomba 40 Mwene -. Moba 25 Rutshuru 4 Luiza Ditu 54 Kabongo Kahemba Kaniama Moba 26 Ngingwe 3 Malemba - 41 27 Binza 5 Tembo Nkulu Piana Mwanga Kilubi 28 Osso 3 Pweto Potential Kapanga Mitwaba 29 Panzi 42 Site (MW) Kamina 42 Mitwaba 30 Sisi 205 52 31 Kamanyola 240 - 390 46 Mambilima V 418 51 Bukama 43 32 Kiliba 15 47 Mumbotuta M 210 Sandoa Dikolongo 33 Ulindi Lubudi 30 48 Mumbotuta CX 300 50 Kalule 34 Mwenga 9,5 49 Nzilo II 120 Nseke Kasenga 53 49 Koni 44 35 Kamimbi 14 50 Busanga 240 Kisenge Nzilo 45 36 Kibombo 13 51 Kalengwe 204 Dilolo Kolwezi . Mwadingusha 46 37 Kitete 21 52 Kimimbi/Fuka 153 Likasi . 38 Mwanangoye 46 53 Delporte 5 Kipushi 39 Portes d’Enfer 36 54 Tshilomba 3 .Lubumbashi 40 Kyimbi II 25,8 55 Lubilanji II bis 4,2 47 48 41 Piana Mwanga II 8,4 56 Tshala II 12 42 Sombwe 186 57 Gd Katende 64 SOCIETE Sakania 43 Kiubo 66 58 Katende/Bombo 10 NATIONALE Kilomètres 44 Mambilima I 124 59 Tshikapa 64 - 128 0 100 200 300 400 500 45 Mambilima II 201 60 Lukenie 3 D’ELECTRICITE sarl Le Caire (Egypte)

Bangui (RCA) (RCA) Zongo Mobayi Yakoma Ango Bondo Bosobolo Niangara Faradje Gbadolite Dingila Libenge Zulu- Dungu M’zoro Gemena Karawa Businga Bambesa Rungu Aru Poko Watsa Aketi Isiro Kungu Lepudungu Mahagi NATIONAL POWER GRID Budjala Lisala Buta Wamba Djugu Bumba Nepoko Bomongo Soleniama I-II Mambasa Basankusu Basoko Banalia Irumu Bunia BY 2035 Bongandanga Budana Yahuma Bengamisa Bafwasende Nkenda Bolomba Isangi Tshopo 2 Beni (Ouganda) Befale Djolu Tshopo Butuhe Kisangani Semliki Kisalala Mbandaka Wanie-Rukula Boende Lubero Butembo Lutunguru Ingende Opala Lubutu Bokungu Ubundu Mugomba Kilima Bikoro , Nyabiondo Rutshuru Punia Kiri Ikela Masisi Ruanguba Monkoto Walikale Katale Belia Kalehe Goma Inongo Lomela Lulingu Katana Ambwe Moga Kabare Bukavu Ruzizi I Nioki Kalima Ruzizi II,III,IV (EGL) Lutshurukuru I-II Walungu Mushie Kutu Calabar Kindu Shabunda Mwenga Gombo Dekese (Nigeria) Lukenie Lodja Pangi Mungombe Kiliba Bandundu Kamimbi Uvira Brazzaville Bagata Oshwe Kole Katakokombe Kampene Mangembe (Congo) Kibombo Zongo II Kinshasa Ilebo Pointe Noire Masi- Kasongo Fizi (Congo) Zongo manimba Bulungu Lubefu Tshela Luozi Piopio Lusambo Seke- Kikwit Mweka Banza Sanga Kenge Idiofa Kongolo Cabinda Lukula Inga I-II Luebo Demba Lubao Kyimbi (Angola) Mbanza- Kimvula Kakobola Dimbelenge Ngungu Kitona Kananga Nyunzu Moanda Popokabaka Bamba Gungu Mbuji Mayi Kabinda Boma Matadi Mpozo Kabalo Katende Tshala Kalemie Feshi Kasanza Tshikapa Mani Grand Inga Lubilanji I-II Kasongo-Lunda Kazumba Ankoro Maquela do Zombo Shakahamba Lungudi Mwene- Gandajika Manono (Angola) Ditu Moba Tshilomba Kabongo Luiza Tembo Kahemba Kaniama Moba Kilubi Piana Mwanga Luanda Tembo Luba (Angola) Malemba-Nkulu Kapanga Mitwaba Pweto Kamina Kibula Mitwaba Kimimbi-Fuka Sombwe L E G E N D Bukama Sandoa Luena Kalengwe Dikolongo Kiubo Mambilima I Known hydroelectric site Busanga Kalule Lubudi Mambilima II Existing Planned Nseke Kasenga Koni SNEL hydroelectric power plant 400 kV transmission line Dilolo Nzilo 2 Nzilo Fungurume Private hydroelectric power plant 220 kV transmission line Kisenge Tenke Mwadingusha Thermal power plant 132 kV transmission line Kolwezi Interconnector Kambove Likasi HV transmission line Substation Lubumbashi SOCIETE Interconnector Kipushi Under construction Musoshi Mumbotuta CX AC substation Kasumbalesa NATIONALE Hydroelectric power plant Mokambo Convertor station 400 kV transmission line Kilometer Witkop Sakania D’ELECTRICITE sarl Switching station 220 kV transmission line 0 100 200 300 400 500 (RSA) Mitchelo/Ndola (Zambie) HISTORY OF THE SITE DEVELOPMENT STUDIES 1955 HISTORY OF THE SITE DEVELOPMENT STUDIES 1957 HISTORY OF THE SITE DEVELOPMENT STUDIES

GEOLOGY Tunnel in greenstone for geological surveys excavated in 1957 BUNDI DAM in BCR

POWER PLANT GREEN STONE

WEST EAST

Observation Tunnel Excavated in 1957 Visited in 2012 55 years later HISTORY OF THE SITE DEVELOPMENT STUDIES 1960 HISTORY OF THE SITE DEVELOPMENT STUDIES 1971 HISTORY OF THE SITE DEVELOPMENT STUDIES 1974 2013 FEASIBILITY STUDY : MAIN RESULTS

A new approach is proposed, making the development of the Grand Inga possible in the very short term:

• Innovative, flexible and economical staging identified • Each phase as small as 7,000 MW at competitive costs • Phase size can be adjusted to adapt to planned demand and export opportunities • Inga 3 becomes a simpler first phase, with no closure of the Congo River and no tunnels, using an open channel DEVELOPMENT SCHEME

Inga Site Average flow: 41,000 m3/s 100 m head

Inga 1 (351 MW) Inga 2 (1 424 MW) DEVELOPMENT SCHEME

Inga 3 Low Head Transfer Channel Bundi Valley Dam Inga 3 Power house P max : 2,500 – 5,000 MW Q max : 3,500 – 7,000 m3/s DEVELOPMENT SCHEME

Inga 3 Low Head Reservoir Filling Upstream Water Level: 145 - 170m DEVELOPMENT SCHEME

Inga 3 High Head River Closure Dam Spillways and Dikes Raising Bundi Dam Head +50% No New Power house P Inga 3 HH : up to 8,000 MW DEVELOPMENT SCHEME

Inga 3 High Head Reservoir Filling Upstream Water Level: 202 – 205 m INGA 3 TUNNELS VS OPEN CHANNEL – MAIN FINDINGS OF THE COMPARISON :

Major risks associated with underground works

• More than 60 km of very large tunnels • Construction delays and costs overrun to be anticipated

All INGA 3 alternatives located downstream from the future Grand Inga do not allow the optimal development of the site

• Uses large flows that will not make use of the full head once the Grand Inga dam is built • Put constraints on the future development of Grand Inga, in terms of water usage, land use, etc. MAIN ASPECTS OF THE NEW PHASED DEVELOPMENT

• New Inga 3 LH with open channel is the first phase of the integrated phased approach of Grand Inga

• Size of Inga 3 LH adaptable to confirmed offtakes, and could start as a national project, and later upgrade to a regional project scope

•  Preliminary analysis proposed Inga 3-LH to be 4,800 MW (to be confirmed based on maximum capacity of river intake) DEMAND COMPONENTS

1ST DEMAND COMPONENT OF A PHASED DEVELOPMENT OF INGA 3 LH : INTERNAL (DRC) DEMAND ONLY

 2,000 to 2,300 MW for DRC including mining industry needs in 2020 • Internal increase in demand or limited exports • Line losses below 5%  Opportunity for electro-intensive industries in a Special Economic Zone (SEZ) to benefit from Inga competitive energy . • Total requirements for first development step approximately @ 2,300 MW DEMAND COMPONENTS

2ND DEMAND COMPONENT IN PHASED DEVELOPMENT OF INGA 3 LH : INTERNATIONAL EXPORTS

– RSA (size of exports 2500 MW )

– Line losses to be included (~below 5%)

 Total international requirements 2500 MW… INGA 3 POWER PLANT INGA 3 POWER PLANT

High Head dam

Low Head dam INGA 3 POWER PLANT

INGA 3 – LOW HEAD  From 4 to 12 units, 2,500 to 5,000 MW (maximum confirmed : 11)  Integrating final development of Grand Inga when river dam is built in the future  Turbine-generators designed to operate at low and high head  Bundi Dam and intake structures designed to be raised in the future  Construction costs (excluding Financing, inflation & IDC)  2,600 MW, 4.1 billion $  3,500 MW, 5.0 billion $  4,800 MW, 6.2 billion $ (2,6 billion $ Channel/Dam/spillway + 3,6 billion $ Power plant + 2,6 billion $ DC line Inga - Kolwezi)  Construction schedule : 6 years for full commercial operation INGA 3 POWER PLANT

INGA 3 – HIGH HEAD

 Main dam on the Congo River built at maximum elevation (205 m)  Spillways, dikes and secondary dams built  Bundi Dam raised to maximum elevation  No new powerhouse, no equipment modification  Generation raised by 50% approx using the same power plant PROGRESSIVE DEVELOPMENT OF GRAND INGA

INGA 3 & INGA 4

4

3 PROGRESSIVE DEVELOPMENT OF GRAND INGA

INGA 3 TO INGA 5

5 4

3 PROGRESSIVE DEVELOPMENT OF GRAND INGA

INGA 3 TO INGA 6

6 5 4

3 PROGRESSIVE DEVELOPMENT OF GRAND INGA

INGA 3 TO INGA 7

7 6 5 4

3 PROGRESSIVE DEVELOPMENT OF GRAND INGA

INGA 3 TO INGA 8

6 7 5 4 Inga 3 : 11 units - 7,942 MW . LH : 5,456 MW . HH : + 2,486 MW 3 Inga 4 : 8 units - 7,424 MW Inga 5 : 8 units - 7,424 MW Inga 6 : 8 units - 7,424 MW Inga 7 : 8 units - 7,424 MW Inga 8 : 8 units - 7,424 MW 8 Total : 51 units - 45,052 MW PROGRESSIVE DEVELOPMENT OF GRAND INGA

INSTALLED CAPACITY OF THE INGA SITE Instaled capacity Instaled PROGRESSIVE DEVELOPMENT OF GRAND INGA

Main benefits :

 To finally and rapidly start Grand Inga development  Flexibility to adapt to DRC and export demand patterns  Provide optimized generation costs at each stage by levelling investments over time  Allow multiple public / private operators to share the site IMPACTS OF INGA 3-LH

IMPACTS ON LAND USE

● Very low footprint on land: <19 km²; <0.5 ha/MW ● Favourable Land Use:  100% of the installations within SNEL concession  Few forest (2.6 km²) and cultivated zone (1.8 km²)  Biodiversity with no particular or exceptional character  No habitation affected  No involuntary population displacement  No infrastructure destruction

IMPACTS ON LAND USE VERY LIMITED IMPACTS OF INGA 3-LH Number inhabitants of relocate/MW to

INGA 3-LH

Occupied Hectares /MW IMPACTS OF INGA 3-LH IMPACTS RELATED TO CONSTRUCTION ● Spontaneous population: manageable risk ● Employment: Very positive, 6-7 years, estimated 3,000 direct jobs in average and 7,000 at peak ● Regional Economy: Positive impacts regarding the growth of purchase power and derived jobs ● Water and Air Pollution: Manageable risk with good management ● Public Safety: Low risk on roads and site, except for urban zones (5.7 km) ● Camp Kinshasa: opportunity to solve the conflict related to promiscuity: 7,500 hab. en 2010, or 40,000 hab./km² ● Recommendation to resettle the camp POWER HIGHWAYS FROM INGA SITE

ALGERIA LIBYA EGYPT

MAURITANIA

MALI NIGER

CHAD GAMBIA DJIBOUTI SUDAN BURKINA BISSAU-GUINEA GUINEA FASO

NIGERIA ETHIOPIA

SIERRA LEONE IVORY BENIN TOGO

COST GHANA CAR

CAMEROON

LEGEND EQU. GUINEA. KENYA

SAO TOME & GABON R. Interconnection projects PRINCIPE DR CONGO B. Towards North INGA TANZANIA Towards North (alternative) COMORES Towards South (Eastern corridor) ANGOLA Towards South (Western corridor) Towards West

ZIMBABWE  Convertor station BOTSWANA Existing NAMIBIA Planned

SWAZILAND

SOUTH AFRIICA LESOTHO CONCLUSION

 Site specific initial conditions very favourable  Hydrology greater than the needs  Negative Impacts identified are of low intensity and manageable  Potential Social and Economic Positive Impacts