Cogen for Africa – Full Size Project Brief Annexes Table of Contents

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Cogen for Africa – Full Size Project Brief Annexes Table of Contents COGEN FOR AFRICA – FULL SIZE PROJECT BRIEF ANNEXES TABLE OF CONTENTS ANNEX A: INCREMENTAL COST ANALYSIS .................................................................................... 3 ANNEX B: LOGICAL FRAMEWORK .................................................................................................... 7 ANNEX C: RESPONSE TO PROJECT REVIEWERS ..........................................................................15 TECHNICAL REVIEW OF COGEN FOR AFRICA PROJECT PROPOSAL ............................................................ 15 RESPONSE.............................................................................................................................................. 19 ANNEX D: THE DESIGN OF THE AFRICA COGEN CENTRE.........................................................20 ANNEX E: STAKEHOLDER GROUPS, THEIR INVOLVEMENT AND ROLE IN, AND BENEFITS FROM, THE PROJECT ........................................................................................................26 ANNEX F: MONITORING AND EVALUATION PLAN ......................................................................28 ANNEX I: WORK PLAN, SCHEDULE AND MILESTONES ..............................................................30 ANNEX J: SUMMARY OF CO-FINANCIERS.......................................................................................33 ANNEX K: PRE-FEASIBILITY ASSESSMENT OF COGENERATION IN SELECTED SUGAR FACTORIES................................................................................................................................................36 FINCHAA SUGAR FACTORY, ETHIOPIA........................................................................................... 36 WONJI SHOA SUGAR MILLS, ETHIOPIA........................................................................................... 59 SUGAR CORPORATION OF UGANDA LTD, UGANDA.................................................................... 88 GUNIED SUGAR FACTORY, SUDAN.................................................................................................. 93 SENNAR SUGAR FACTORY, SUDAN............................................................................................... 100 NEW HALFA SUGAR FACTORY, SUDAN........................................................................................ 107 ANNEX L: SUMMARY OF THE POWER SECTOR IN PROJECT COUNTRIES.........................114 KENYA POWER SECTOR .......................................................................................................................... 114 POWER SECTOR REFORMS........................................................................................................................ 115 TANZANIA POWER SECTOR ..................................................................................................................... 122 MALAWI POWER SECTOR ........................................................................................................................ 126 ETHIOPIA POWER SECTOR ....................................................................................................................... 128 SUDAN POWER SECTOR........................................................................................................................... 131 SWAZILAND POWER SECTOR................................................................................................................... 134 ANNEX M: SUMMARY OF AGRICULTURAL PRODUCTION IN PROJECT COUNTRIES....135 ANNEX N: LIST OF INSTITUTIONS AND PERSONS CONTACTED DURING PDF-B ..............136 ANNEX O: BRIEF ON AFREPREN.......................................................................................................146 ANNEX P: PRELIMINARY ASSESSMENT OF COGENERATION POTENTIAL IN SELECTED SUGAR FACTORIES...............................................................................................................................151 CHEMELIL SUGAR FACTORY, KENYA...................................................................................................... 151 BUSIA SUGAR FACTORY, KENYA ............................................................................................................ 152 NCHALO SUGAR MILL, MALAWI............................................................................................................. 153 DWANGA SUGAR MILL, MALAWI............................................................................................................ 155 ANNEX Q: COGEN PROGRAM IN ASEAN........................................................................................157 ANNEX R: COGENERATION IN MAURITIUS..................................................................................158 ANNEX S: NEWSPAPER ARTICLES RELEVANT TO THE PROJECT ........................................161 KENYA: ELECTRICITY SET TO COST MORE ............................................................................................... 161 KENYA: SUGAR INDUSTRY'S POTENTIAL IS YET TO BE FULLY UTILISED ............................................ 163 i TANZANIA STARTS RATIONING ELECTRICITY DUE TO DROUGHT........................................................... 165 UGANDA: POWER SHORTAGE: FIRMS DIE ................................................................................................ 166 UGANDA: WHO LET THE WATERS OUT?................................................................................................... 168 UGANDA: UGANDA DEVELOPS RURAL ENERGY MASTER PLAN.............................................................. 171 KENYA: BAGASSE BURNING AT CHEMELIL SUGAR COMPANY................................................................ 173 ANNEX T: QUALIFICATIONS AND RESPONSIBILITIES OF AFRICA COGEN CENTER PERSONNEL.............................................................................................................................................174 ANNEX U: POSSIBLE COGEN COUNTRY OFFICES ......................................................................181 ANNEX V: BENEFITS OF COGENERATION ....................................................................................183 ANNEX W: LEAST COST ANALYSIS..................................................................................................187 ANNEX X: CLEANER ENERGY FUND FOR AGRO-INDUSTRY IN AFRICA (CEFA)...............190 ii ANNEX A: INCREMENTAL COST ANALYSIS Project Outcomes Baseline Alternative Increment Outcome 1: Capacity of • Inefficient and low-pressure • Comprehensive study conducted on the fuel resources • Detailed assessments on the availability of biomass cogeneration project cogeneration systems mainly for captive available, their potential for cogeneration and the resources potential for cogeneration conducted and developers, technical energy generation will continue to be applicable technologies to implement them made available for project developers and other service providers and local implemented in industries, thus, limiting stakeholders the experience and expertise of project • Initiatives made for local equipment manufacturers to manufacturers developed developers, technical service providers develop partnerships with global equipment suppliers • Participation of local manufacturers in the and enhanced and local manufacturers to the existing of efficient cogeneration systems thereby enhancing installation of new cogeneration projects and their (baseline) technologies their manufacturing capability capability enhanced through partnerships with foreign suppliers • • Pre-feasibility studies conducted in- Capacity building activities in the form of seminars, house with limited expertise from workshops and training provided to local engineers • Skills and capability of local technical personnel on outside by a few forward looking and relevant stakeholders technical and project development aspects of companies cogeneration developed through training and • Technical advice and services provided to project capacity building activities • Local manufacturing capability will developers and potential owners of cogeneration remain low and experience limited to systems • Software tools for technical analysis of projects inefficient and low-pressure systems developed and/or adapted and used to provide • Examples of successfully operated cogeneration advice and training of technical personnel installations shown to relevant potential developers/owners through visits and study tours to appropriate sites Baseline cost: 250,000 USD Alternative cost: GEF: 943,836 USD 1,568,836 USD Private sector: 375,000USD Total incremental investment: 1,318,836 USD Outcome 2: Financing for • Currently, financing of cogeneration • Existing financing sources and mechanisms both • Existence of financing institutions, funds and cogeneration projects systems are made through the local and regional/international that are relevant for innovative schemes that have been tapped/accessed made available and company’s balance sheet and the sector are identified for new investments in cogeneration projects accessed at terms and guaranteed by collaterals. Very few companies have the means and are able • To provide flexible mechanisms appropriate for • Through workshops, forums and training organized conditions that are to do this. Without supporting cogeneration projects innovative financing structures by the Africa Cogen Centre, the capacity of project favorable for investments mechanisms from specialized will be designed developers to package projects for financing are institutions such as the Africa Cogen enhanced; relevant financing
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