WEST AFRICAN POWER POOL : PRIORITY PROJECTS and IMPLEMENTATION STRATEGY Outline of Presentation

WEST AFRICAN POWER POOL : PRIORITY PROJECTS AND IMPLEMENTATION STRATEGY Outline of Presentation

• Electricity Supply Situation in West Africa • Vision and Mission of WAPP • Master Plan 2004 • Objectives of the Updated Master Plan • Implementation Strategy (Model, Finance) • Status of Priority Projects How do we reduced the Deficit in Electricity Supply in West Africa?

Inadequate installed -Development of capacity in members geneation and states of the ECOWAS WW transmission infrastructureinfrastructure AA -Public PrivatePrivate Mismatch between Partnership generation and demand for electricity (Leading to PP -Establishment ofof aa load shedding) Regional Electricity

-InstitutionalMarket PP Framework and Highly unstable price of Regional Electricity fuel and inadequate Regulator electricity tariff

3 VISION & MISSION

• Vision: Integrate the national power system operation into a unified regional electricity market with the view to providing, in the medium and long term, to the citizenry of ECOWAS Member States with stable and reliable electricity supply at affordabel cost.

• Mission: Promote and develop energy generation and transmission infrastructures, as well as, ensure the coordination of energy exchange within ECOWAS Member States. UPDATING ECOWAS GENERATION AND TRANSMISSION MASTER PLAN REVISED MASTER PLAN 2004

– The implementation of the Revised Master Plan was affected by global financial meltdown and the global energy crisis.

– In some cases, national projects were undertaken instead of regional projects by the various countries in order to meet the energy needs of the individual countries.

– A revison of the the Regional ECOWAS Master Plan became imperative in order to create a coherent framework for a regional electricity market. UPDATE OF THE REVISED ECOWAS MASTER PLAN

Objectives of the Study: • To elaborate an optimal development plan for a regional generation and transmission of electrical energy. • To propose a list of regional priority project that will assure energy security and the achieve the of interconnection of all the West African countries by 2018. • To elaborate a strategy for implementing the regional priority projects. UPDATE OF THE ECOWAS REVISED MASTER PLAN

Methodology of the study: ¾ Data collection and analysis of the generation and electricity demand of the various countries ¾ Economic Study: optimal development plan ¾ Technical Study: Technical Study of the operation and stability of the network ¾ Environmental Analysis ¾ Financial analysis of the electricity companies in West Africa ¾ Compiliation of a list of regional priority projects ¾ Analysis of the implementation strategy. 27/08/11 9 27/08/11 10 UPDATE OF THE ECOWAS REVISED MASTER PLAN : ENERGY MIX WITH 10% OF RENEWABLE ENERGY BY 2020

Mix Energétique en termes d'énergie produite

100%

90%

80% EOLIEN SOLAIRE 70% BIOMASSE 60% AUTRES 50% DIESEL OIL 40% HFO 30% CHARBON

20% GAZ NATUREL HYDRO 10%

0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 11 MASTER PLAN IMPLEMENTATION STRATEGY IMPLEMENTATION STRATEGY

Inter zonal North Core transmission Hub

MALI

SENEGAL NIGER

GAMBIE

GUINEE 150MW BISSAU BURKINA FASO GUINEE NIGERIA OMVG-OMVS BENIN SIERRA CÔTE TOGO LEONE D’IVOIRE GHANA 450MW LIBERIA CLSG 450MW Coastal backbone 13 IMPLEMENTATIONIMPLEMENTATION STRATEGYSTRATEGY

• Implementation Models • Traditional Model : ¾ Project Implementation Unit to coordinate activities in the various countries • Regional Model : ¾ Establishment of a single Project Implementation Unit ¾ Establishment of Specific Purpose Company (SPC) 9 Supplementary Act A/SA.3/01/08 adopted by the Heads of State and Government of ECOWAS in January 2008 in Ouagadougou IMPLEMENTATIONIMPLEMENTATION STRATEGYSTRATEGY

• Sources of Financing ¾Traditional lending institutions ¾Public Private Partnership ¾Establishment of an ECOWAS Regional Fund dedicated to electricity projects ¾Power Utilities ACTUALISATION DU PLAN DIRECTEUR REVISE DE LA CEDEAO

Conclusions: Regional Priority Projects 2011 – 2025: ¾10 000 MW to be installed of which 7 000 MW will be hydro sources ¾16 000 km of transmission lines

TOTAL INVESTMENT COST IS US$ 24 BILLION WITH GENERATION COST OF US$ 18 BILLION AND TRANSMISSION OF US$6BN

16 STATUS OF DELIVERY Coastal Transmission Backbone Subprogram (Cote d’Ivoire, Ghana, Benin/Togo, Nigeria).

330 kV Riviera (Cote d’Ivoire) – Prestea (Ghana) 330 kV Aboadze (Ghana) – Volta (Ghana) 330 kV Volta (Ghana) – Lome “C” (Togo) – Sakete (Benin) 330 kV PHCN/TCN (Nigeria) – CEB (Togo/Benin) 330 kV Riviera (Cote d’Ivoire) –Prestea (Ghana) Expected Commissioning 2015 STATUS: 9 At level of Pre‐investment; 9 Funding secured from EU‐Africa Infrastructure Trust Fund through EIB; 9Consultants already recruited to prepare pre‐investment studies; 9Line Route and ESIA Study kicked off on April 5, 2011 and Scoping Report currently being reviewed by GRIDCo and SOGEPE NEXT STEPS: 19 WAPP to ensure completion of pre‐investment studies by July 2012 330 kV ABOADZE (Ghana) - VOLTA (Ghana) Operational since September 2010

STATUS: NEXT STEPS: 9 Completed; WAPP to monitor and evaluate progress 9 Fully funded by World Bank (WB) under of any remaining issues and performance of line. WAPP APL1, European Investment Bank line. (EIB), Kuwaiti Fund and GRIDCo; 9 The line was energized on 5 September 2010 and is operational; 20 330 kV VOLTA (Ghana) –Lome “C”(Togo) –SAKETE (Benin) Expected Commissioning 2013 STATUS: NEXT STEPS: 9At level of Implementation; GRIDCo and CEB to complete compensation of 9Financing completely secured from AfDB, KfW, affected population; and WB; CEB to conclude Contractor recruitment process; 9Works on 140km 330 kV line and expansion of WAPP to continue monitoring and coordinating substations have commenced in Ghana; project implementation 9Pre‐qualificaton of Bidders for the works is in progress in Togo/Benin 9CEB has also established an Escrow account in 21 Lome for compensation of Project‐Affected‐Persons in ToTogogo and Benin;Benin; 330 kV PHCN/TCN (Nigeria) –CEB (Benin) Interconnection Reinforcement Project Commissioning 2017 STATUS: 9 At level of preparation; 9 Terms of Reference for pre‐investment studies examined and adopted by PHCN/TCN and CEB in September 2011. NEXT STEPS: WAPP Secretariat to finalise Request For Funding and dispatch; 22 Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire).

• 225 kV Bobo Dioulasso (Burkina Faso) – Ouagadougou (Burkina Faso); • 225 kV Bolgatanga (Ghana) – Ouagadougou (Burkina Faso); • 225 kV Cote d’Ivoire – Mali; • 330 kV Aboadze (Ghana) – Prestea (Ghana) – Kumasi (Ghana) – Bolgatanga (Ghana) + Tumu (Ghana) – Han (Ghana) – Wa (Ghana); • Han (Ghana) – Bobo Dioulasso (Burkina Faso) – Sikasso (Mali) – Bamako (Mali); • 225 kV Fomi (Guinea) – Bamako (Mali) – Nzerekore (Guinea) – Linsan (Guinea) • 147 MW WAPP Adjarala Hydro Power Facility Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire).

225 kV BOBO DIOULASSO (Burkina Faso) – OUAGADOUGOU (Burkina Faso) Operational since December 2009 MALI STATUS: • Transmission line operational since December 2009; • Fully funded by WB, AFD, EIB, Danida and Danish Mixed Credit, Government of Burkina Faso, Nordic Fund; BURKINA FASO

NEXT STEPS: GUINEA • WAPP to continue monitoring performance of transmission line

CÔTE GHANA D’IVOIRE Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire). 225 kV Bolgatanga Ghana) – Ouagadougou (Burkina Faso) - Expected Commissioning 2013 STATUS: • At level of processing for financing; • Feasibility and ESIA completed and MALI Environmental Permits secured; • Commercial framework agreed to by VRA, GRIDCo and SONABEL; • Estimated Project Cost ≈ US$111 million • WB Board approved participation in project BURKINA financing in June 2011; FASO • AFD and EIB have confirmed their intentions to finance and shall present to GUINEA their respective Boards in December 2011

NEXT STEPS: CÔTE GHANA • Launch process to recruit Supervision D’IVOIRE Engineer; • WAPP Secretariat to coordinate and monitor project implementation. Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire).

225 kV Cote d’Ivoire – Mali - Expected Commissioning 2012 STATUS: • At level of implementation; • Being funded by BOAD and through bi- MALI lateral cooperation with the Government of India; • Works in Mali are almost completed and approximately 70% advanced in Cote d’Ivoire

BURKINA FASO NEXT STEPS: • WAPP Secretariat to monitor project GUINEA implementation.

CÔTE GHANA D’IVOIRE Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire). 330 kV ABOADZE – PRESTEA – KUMASI – BOLGATANGA , Tumu – Han – Wa : Expected Commissioning 2015 STATUS: •At level of pre-investment MALI •Pre-investment studies fully funded by WB under APL1 Phase 2 •Earmarked for funding under WB APL3 and AFD •Draft Feasibility Study Report being reviewed; •After study of alternative routes, project is now BURKINA from Aboadze to Bolgatanga; FASO •Environmental impact assessment for the project are being concluded. GUINEA NEXT STEPS: •WAPP to monitor implementation of studies by GRIDCo.

CÔTE GHANA D’IVOIRE Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire).

Han (Ghana) – Bobo Dioulasso (Burkina Faso) –Sikasso (Mali)– Bamako (Mali) Expected Commissioning 2015 STATUS: • At level of pre-investment; MALI • Pre-investment studies funded by EIB and implemented by WAPP Secretariat; • Environmental Permits issued in Burkina Faso, Mali and Ghana; • WAPP Joint Implementation Committee established • Institutional Studies for project implementation completed with funding from USAID BURKINA • Estimated Project Cost ≈ €156 million FASO • Donor Consultation Meeting held in February 2011

during which €172 million was mobilized from AFD, GUINEA EIB, EBID, and AfDB; • Recruitment of Consultants in progress to prepare complementary preparatory studies that shall update estimated project cost;

NEXT STEPS: CÔTE GHANA • WAPP Secretariat to conclude recruitment and D’IVOIRE accelerate preparation of complementary studies. Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire). 225 kV Nzerekore (Guinea) - Fomi (Guinea) – Bamako (Mali) Expected Commissioning 2016 STATUS:

• At level of pre-investment; MALI • Funding secured from AfDB; • Process to recruit Consultants has been launched; • Funding arrangements still being finalised between Government of Mali and AfDB;

BURKINA • World Bank is funding pre-investment FASO studies on 90 MW Fomi and Fomi – Linsan

Transmission Line through Niger Basin GUINEA Authority. Recruitment of Consultants in progress. NEXT STEPS: • WAPP Secretariat to conclude process to CÔTE GHANA recruit Consultants and launch preparation D’IVOIRE of studies. 147 MW WAPP Adjarala Hydropower Facility Expected Commissioning – end 2017 STATUS: • At level of Pre-investment/Processing For Financing; • All pre-investment studies and Bidding Documents completed; • Update of economic analysis being done and shall be completed by May 2012; • Estimated cost ≈ €247 million; • WB, AfDB, EBID, KfW and BOAD have indicated firm interest to participate in the project’s financing • Recruitment of Consultant in progress by CEB to update ESIA; NEXT STEPS: • CEB to conclude update of ESIA study and economic analysis. • WAPP and CEB to follow up with interested funding agencies to finalise project’s financing North-core Transmission Sub-program (Nigeria, Niger, Burkina Faso, Benin).

• 330 kV Birnin Kebbi (Nigeria) - Bemberke (Benin) – Niamey (Niger) – Ouagadougou (Burkina Faso); 330 kV Birnin Kebbi (Nigeria) - Bemberke (Benin) – Niamey (Niger) – Ouagadougou (Burkina Faso) Expected Commissioning 2017

STATUS: • At level of pre-investment NEXT STEPS: • Project preparation being funded by • Follow up with PHCN/TCN on concerned utilities; completion of the ESIA and detailed engineering studies, as well as the • Pre-investment studies adopted in tender document preparation December 2007 by MDs/DGs of utilities involved • WAPP Secretariat to support mobilisation of financing for the project • Feasibility study validated by participating upon conclusion of studies utilities 31 May 2010 • Arrangements for ESIA, detailed engineering studies, and preparation of 32 tender document in progess OMVG/OMVS Power System Development Subprogram (The Gambia, Guinea, Guinea Bissau, Mali, Senegal)

• Hydroelectric sites at Felou (60 MW) • Hydroelectric sites at Gouina (95MW) + transmission system reinforcement (Mali, Senegal) • 225 kV interconnection line (The Gambia, Guinea, Guinea Bissau, Senegal) • Hydropower sites at Kaleta (240 MW) and Sambangalou (128 MW) • Development of Souapiti (515 MW) Site (Guinea, Senegal) 60 MW Felou Hydropower Project Expected Commissioning 2013-14

STATUS: • At level of Implementation; • Funded by WB and EIB; • Corner stone laid end October 2009; • EPC Contractor and Owners Engineer recruited; • The project launched in November 2010; • Detailed Engineering Design and civil works in progress; • In August 2011, there was a breach of the river diversion but corrective actions are ongoing. NEXT STEPS: • WAPP to continue to monitor and evaluate progress on project.

34 OMVG Energy Project : Expected Commissioning 2015-16 (Senegal, The Gambia, Guinea, Guinea Bissau)

SALIENT CHARACTERISTICS: • 128 MW Hydropower at Sambangalou; • 240 MW at Kaleta; • 225 kV Transmission line of length 1,677 km interconnecting 4 countries STATUS: • At level of Implementation; • Government of Guinea has launched construction of Kaleta; • Pledges made from Funding Agencies can now cover construction of Interconnection Line; • Update on Economic and Financial Analyses for Sambangalou being concluded and show positive results; • OMVG intends to request Funding Agencies to re-orientate their pledges towards the Interconnection Line whilst integrating new large scale generation initiatives such as in Senegal;. NEXT STEPS: • WAPP to follow up with OMVG to secure pledges already made and request Funding Agencies to re-orientate to X-line. • WAPP to monitor progress made. 35 Cote d’Ivoire-Liberia-Sierra Leone-Guinea Power System Re-development Subprogram (Cote d’Ivoire, Liberia, Sierra Leone, Guinea).

• Man (Cote d’Ivoire) – Yekepa (Liberia) – Nzérékore (Guinea) – Buchanan (Liberia) – Monrovia (Liberia) – Bumbuna (Sierra Leone) – Linsan (Guinea) Interconnection project • Reconstruction of Mt. Coffee / Development of St. Paul Hydro Plant • 515 W Souapiti Hydropower Facility • 118 MW Kassa ‘B’ Hydropower Facility Man (Cote d’Ivoire) – Yekepa (Liberia) – Nzérékore (Guinea) – Buchanan (Liberia) – Monrovia (Liberia) – Bumbuna (Sierra Leone) – Linsan (Guinea) Expected Commissioning 2015 STATUS: • At level of processing for financing; • Pre-investment studies fully funded by EU-Africa Infrastructure Trust Fund through EIB and KfW ; • Joint Implementation Committee (JIC) to set up SPC already established; • Project Preparation Advance of US$4.45 million being provided by WB d’Ivoire to support among others, establishment of SPC. • SPC Establishment and Business Plan study in progress; • ESIA and Bidding Docs being finalised; • Funding of €1.55 million for pre-contract activities of Owners Engineer mobilised from EU-Africa Infrastructure Trust Fund through EIB and KfW;

37 Man (Cote d’Ivoire) – Yekepa (Liberia) – Nzérékore (Guinea) – Buchanan (Liberia) – Monrovia (Liberia) – Bumbuna (Sierra Leone) – Linsan (Guinea) Expected Commissioning 2017 • Estimated cost ≈ €330 million; • Donor Consultation Meetings have resulted in financing for project implementation being mobilised from WB, AfDB, EIB and KfW; • Financing gap of approximately €16 million however remains for ESMP and IDC costs;

• KfW conducted Appraisal Mission in d’Ivoire August 2011; NEXT STEPS: • WAPP Secretariat to finalise ESIA reports and Bidding Documents; • WAPP Secretariat, concerned Funding Agencies and countries to finalise financing arrangements; • Funding agencies to commence project appraisal. 38 Kassa B Hydropower Facility Expected Commissioning 2016-17

STATUS: • At level of pre-investment; • 118 MW site identified in 1981; • Energy foreseen to be evacuated by the CLSG line; • Terms of Reference for pre-feasibility study prepared and validated by EDG and Min. in charge of energy in Kassa B Guinea; d’Ivoire • Estimated cost of pre-investment studies ≈ €0.5 million • Requests For Funding of pre- investment studies being dispatched NEXT STEPS: • WAPP Secretariat to secure funding and commence process to recruit Consultants to prepare studies 39 Souapiti Hydropower Facility Expected Commissioning 2018-19

STATUS: • At level of pre-investment; • Energy foreseen to be evacuated by the CLSG and OMVG transmission lines; • Terms of Reference for update of Feasibility Study prepared and validated by EDG and Min. in charge of energy in Guinea; • Estimated cost ≈ €1.2 million • Requests For Funding being dispatched to WAPP Partners Kassa B

NEXT STEPS: • WAPP Secretariat to secure funding and commence process to recruit Consultant

40 64 MW WAPP Mount Coffee Hydropower Facility Expected Commissioning 2015-16

STATUS: • At level of pre-investment • Pre-investment studies completely funded by EU- NEXT STEPS: Africa Trust Fund through EIB and KfW in • WAPP Secretariat and LEC to accelerate the progress preparation of the studies • Donor consultation meetings have resulted in approximately US$182 million being mobilised from EIB, WB, KfW and AfDB to implement the project • Consultants already recruited to complete project preparatory studies Implementation of WAPP EPSSP STATUS • 450 MW Maria Gleta Power Generation Facility: – Land Acquired in Benin. – Pre-Investment Studies completed • 400 MW Aboadze Power Generation Facility: – Land Acquisition in Ghana – in progress at Domunli/Bonyere • 150 MW OMVS Power Generation Facility: – Government of Senegal has confirmed its willingness to incorporate WAPP requirements in its coal-fired generation program. • Selection of Private Firm to partner with WAPP to develop Maria Gleta and Aboadze completed after competitive bidding process.

NEXT STEPS • Joint Development Agreement between WAPP and Private Partner to be concluded mid-November 2011; • WAPP Secretariat to secure land at Domunli/Bonyere; • WAPP Secretariat to organise meeting of OMVG and OMVS Member States to discuss among others, institutional and commercial frameworksa and also adopt project implementation planning. Status of Implementation of MV Cross Border Projects

BURKINA FASO

BENIN

GHANA CÔTE D’IVOIRE TOGO LIBERIA

At level of implementation within framework of ACP-EU Energy Facility Fully funded by EU and SONABEL, VRA, ECG, CEB, CEET, SOGEPE, LEC. Ghana - Togo: Completed and commissioned. Ghana - Burkina Faso: Completed in Burkina Faso. Works in Ghana expected to be completed mid-November 2011. Cote d'Ivoire - Liberia: Construction in progress, commissioning expected December 2012; North Benin – North Togo: & South Ghana – South Togo: Recruitment of Consultants to prepare pre-investment studies in progress 43 ECOWAS Techincal and Financial Assistance Program for City of Conakry Under direction of ECOWAS Commission, WAPP Secretariat conducted assessment in Conakry in February 2011 to establish technical and financial requirements for an emergency program to improve power supply in the city of Conakry; Outcomes of assessment: ¾ Estimated total financing needs is about US$108 million with the emergency actions approximated at US$58.5 million; ¾ Emergency actions should cover costs that include among others: a) fuel and lubricant consumption estimated at US$48.6 million, b) capacity building program for the Ministry in charge of energy and national utility estimated at US$1.03 million c) spare parts safety stock and replacement of obsolete auxiliary power units at Tombo III and V approximated at US$9.66 million ¾ ECOWAS Heads of State and Government have directed through Supplementary Act that among others: ECOWAS Commission provide a financial assistance to the Government of Guinea of US$30 million, out of which US$10 million would be a grant-in-aid and US$20 million a loan on very favorable terms; ECOWAS Commission, WAPP Secretariat and Government of Guinea engage Donors to close the funding gap of US$78 million with priority focus on US$28.5 million.

Financing Agreements have been signed for the ECOWAS assistance and procurement44 is in progress; CONCLUSION Financing Requirements

Financing Gap on CLSG : €16 million

Pre-investment studies on PHCN/TCN – CEB Interconnection Reinforcement Project : €2.5 million

Update of Feasibility Study on 515 MW Souapiti Hydropower Project : €1.2 million

Financing for 147 WAPP Adjarala Hydropower : €247 million

Pre-investment studies on 118 MW Kassa ‘B’ Hydro Project : €0.5 million

Financing gap on ECOWAS Assistance Programme for City of Conakry : US$78 million

46 Summary – Implementation Schedule

Interconnection in service

MALI NIGER