AFRICA POWER VISION CONCEPT NOTE & IMPLEMENTATION PLAN from Vision to Action

January 2015 The Africa Power Vision (APV) Package was prepared to facilitate the implementation of the initiative driving it from vision to action.

In September 2014, representatives of Power Africa and the New Partnership for Africa’s Development (NEPAD) Agency signed a memorandum of understanding under which Power Africa would support the NEPAD Agency in presenting the selection of the Africa Power Vision priority projects at the NEPAD Heads of State and Governments Orientation Committee (NEPAD HSGOC) meeting in January 2015. This package was prepared in response to that understanding.

Drawing on the Africa Power Vision concept note and factors for project consideration (currently NEPAD APV Project Prioritisation Considerations Tool/PPCT), three considerations were added and an implementation plan is proposed. An initial priority list with thirteen (13) projects is currently being considered for further prioritisation. Each APV project under consideration was assessed against the NEPAD PPCT to ensure the political support of the APV process at its highest level. As such, the NEPAD Agency is submitting the APV Package to the NEPAD HSGOC chaired by H.E. President Macky Sall for endorsement in January 2015.

FROM VISION TO ACTION

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DISCLAIMER

This publication was made possible through support provided by the US Agency for International Development, under the terms of Contract No. AID-623-C-14-00003. The opinions expressed herein are those of the author(s) and do not necessarily reflect the views of the US Agency for International Development and/or the US Government.

Unless otherwise explicitly stated, the information in this package was adopted from content provided directly by the NEPAD Agency or a source referred to by the NEPAD Agency. Any additional information from third-party sources, including graphics, pictures or maps have been fully cited. Tetra Tech, Nexant and BDO also provided information and analysis. TO ACTION FROM VISION NEPAD PlanningandCoordinating Agency Chief Executive Officer Dr. Ibrahim Mayaki given that theissue ofenergy isat thecore ofdevelopment constraints onthe continent. especially Africa, in development energy ramp-up and support to partners bilateral/multilateral other and Union European tasked with the implementation of APV, calls upon African countries and development partners, such as the United States,Agency,NEPADbeing the The accessibility.energy coherentof goals a targetedAfrica’s achieve in eventually will developed that be manner integrated can and projects energy further which under framework and vision continental a provide also will but Africa in projects energy targeted priority and PIDA of implementation the advance only not will APV forward,the Going drivingGDP (ii) resources, domestic are (i) leveraging (v) mobilisingallavailable resources. these and the vision; efficiently assets power our of running (iv) integration, regional through power of scale-up (iii) the bedrock electrification, with growth form that pillars five are There implementation andsustainability of required energy projects. development, the in ensuring in Africa institutionaldevelopment capacity development and skills technical of critical role the efficient manner as well as a focus on effective and cleaner an sources in delivery of energy energy up in line scale with integration to global regional increased standards. for calls The it APV emphasises addition, In Africa. in resources energy renewable the vast of full usage andmaking solutions off-grid implementing also while connected, those to deliver to energy sufficient theAU through Africa in projects energy critical of Technical implementation Body, the NPCA. APV aims to achieve an 80% residential accelerate electrification rate by 2040 and 90% for rapidly industry/business, with and drive Agenda. to 2063 Africa seeks with primarily consistent It approach balanced well and coherent a in resources energy diversified Africa’s using the African Development Bank (AfDB). APV articulates a long-term plan for increasing access to reliable and affordable energy and (UNECA) Africa for Commission Economic the Nigeria, Finance, of Ministry Federal the (NPCA), Agency Coordinating and the aim of advancing its implementation. It was jointly developed by the African Union Commission (AUC), the NEPAD Planning with Africa in projects energytargeted priority and (PIDA) Africa InfrastructureProgrammein forDevelopment the on based is APV The Agenda. 2063 Africa with consistent is that Africa powering of vision overarching an APV,is Vision, Power Africa It bringsmegreat pleasure to introduce you to the Africa Power Vision. FOREWORD

NEPAD I Africa Power Vision Concept Note & Implementation Plan II NEPAD Africa Power Vision Concept Note & Implementation Plan NEPAD PlanningandCoordinating Agency Chief Executive Officer Dr. Ibrahim Mayaki thank allotherstakeholders whoparticipated inone to way oranother inthe development ofthe APV opportunity Package. this take Finally, we team. Africa Power USAID the and Agency NEPAD Team the by finalised and developed The preparation of the APV package to the NEPAD Heads of State Government and Orientation Committee (HSGOC) was jointly the coordination ofthisinitiative. who supported private entities multilateral and African other thank also meetings. We these in present also were who Bank, We highlyappreciate the significant contributions from theUS Agency for International Development (USAID), IMFand World from representatives other and Finance and Energy/PowerCameroon, the Democratic Republic ofCongo, Egypt, of Ghana, Liberia, Nigeria, Rwanda, SouthAfrica, and Ministers Togo. the especially Vision, Power Africa the discuss convened meetings to various the at represented countries African the of Governments the to gratitude our express also We for leadingandsupportingthisprocess. Mr. Dlamini-Zuma; Nkosazana Dr. Chairperson, Erastus AU Mwencha,ChairpersonAU; Deputy the Dr.of NPCA; ExecutiveLopes, Carlos Secretary the UNECA NEPAD the and of Nigeria), Team (CME/HMF, Okonjo-Iweala Ngozi Dr. to go thanks Special Bank (AfDB). NEPAD Planning and Coordinating Agency (NPCA), the Economic Commission for Africa (UNECA) and the African Development (AUC), Commission Union African the with collaboration in (CME/HMF), Finance of MinisterHonorable Economyand the for Minister Coordinating Okonjo-Iweala,Dr.Ngozi (Mrs.)of leadership the under developed was (APV) Vision Power Africa The ACKNOWLEDGEMENTS

Permanent Representative ofthe United States to the UN Economic CommissionofAfrica Representative oftheUnited States ofAmerica to theAfrican Unionand Ambassador Reuben E.Brigety, II rapid riseto political andeconomic leadership inthe 21st century. Africa’sconstraintto a be longer We look no will energy that so Africa in destiny. sector energy transformthe energy to together working forwardto own Africa’s to control capacity African to build our resources leverage and to relationships opportunity the expertise, collective and collaboration important this to forward look truly partners its of all and Africa Power become dual-hatted asboth Power Africa andAPV Transaction Advisors. Power Africa’s Transaction Advisors, to the extent there is overlap between Power Africa’s prioritiesandthe APV projects, will forward. projects the to move solutions offer to and projects energy these to obstacles and impediments identify to Agency Starting in 2015, Power Africa’s on-the-ground Transaction Advisors will use the Power Africa model by working with the NEPAD but to alsosupporttheimplementation ofthe vision. be African-led. Power Africa entered into this partnership with the NEPAD Agency to not just support the shaping of the vision, projects must these of selection the processand this that Powerclear wasteamthe Africa document, develop this helping In APV sets outto provide accessto modern energy andexpand the regional impactoftheenergy sector inAfrica. with working of partners to doubleaccess to electricity insub-Saharan Africa. goal Obama’sPresident achieve us help will which forward, going APV support to excitedopportunity the is have Africa to Power sector. the on for African impact regional broad, anopportunity a have that and represents projects infrastructure energy elevate sector to the power leaders for priorities African-driven reflects that framework a is APV energy projects throughout thecontinent. Power Africa signed a memorandum of understanding with the African Union’s NEPAD Agency to collaborate on and accelerate partners, African Power that our ensureToAfrica’s to of (APV).Power and those Vision” APV with theefforts aligned support So, these leaders committed to a focused vision for developing key energy infrastructure across Africa -- now called the “Africa And they wanted to dothesame;butAfrican leaders themselves wanted to choose thoseprioritytransactions. as possible. quickly as line finish the across them get to partners with working and transactions energy concentratingkey on of model Africa Power the liked They vision. could common a they themselves with continent how the on development energy drive todiscuss to together work gathered U.S. leaders of African launch several the initiative, after months Africa few Power Obama’s a just Barack Switzerland, President Davos, in meeting Forum Economic World the at 2014 January In FOREWORD

III NEPAD Africa Power Vision Concept Note & Implementation Plan IV NEPAD Africa Power Vision Concept Note & Implementation Plan 14. 13. 12. 11. 10. 8. 7. 6. 5. 4. V Five PillarFilter Project Selection Process 3. 2. 1. Exhibits ACRONYMS AND ABBREVIATIONS CONTENTS Proposed HighPriorityAPV Project Profile Briefs Annex References 9. 1 EXE

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CUTIVE SUMMARY AP IN Condi Op T K Risk Iden T The Thr The F Pr Dir Pr Coun Pr 2.1 AFRICA PO AFRICA PO 2.2 3.1 REFEREN 3.4 3.3 3.2 ypical FundingSources for Power Projects ypical Project FinanceStructure ey Risks andMitigants for Power Projects oject ImpactandSecondary Value Creation oject Readiness Filter oject Readiness Thresholds TRODUCTION timal FinanceRaisingSchedule for Power Projects ect Project Value Filter

try/Region Readiness CapacityFilter our PhasesinaTypical Power Project tions Precedent to Drawdown ofFunds RA S F THE SIXS FIN MITIGA PR OR ACCELERATION METHODOLOGY TRATEGY: THE FIVE PILLARS TO ACHIEVE THEVISION ee Most CommonTypes ofPublicPrivate Partnerships TIONALE OJECT DEVELOPMENT PHASES tification Methodology CES ANCING POWER PROJECTS WER VISION: CONCEPT NOTE WER VISION: IMPLEMENTATION PLAN

TING PROJECT RISK TEP PROJECT PRIORITISATION

22 17 13 11 23 VI V 2 1 3 2 5 5 ACRONYMS ANDABBREVIATIONS AC ADEPI AFC AfDB APV AU AUC BOT CEB CTB DBSA DRC DSCR EAPP ECCAS ECG ECOWAS EDM-SA EIB EOI EPC ESIA FSRU GDC GDP GE HSGOC HVDC ICRC IDA IPP IRR JV KfW LCP LNG Alternating Current et laPromotion d’Inga Agence pourleDéveloppement African FinanceCorporation African Development Bank Africa Power Vision African Union African UnionCommission Build Operate Transfer Communaute Electrique DuBenin Coastal Transmission Backbone Development BankofSouthernAfrica Democratic Republic oftheCongo Debt Service CoverageDebt Service Ratio Eastern Africa Power Pool Central African States Economic Communityof The Electricity CompanyThe Electricity ofGhana West African States Economic Communityof Energie duMali–SA European Investment Bank Expression ofInterest Engineering, Procurement,Engineering, Construction Assessment Environmental andSocialImpact Floating Storage Regasification Unit (Kenya) Geothermal Development Company Gross Domestic Product General Electric Orientation Committee Heads ofState andGovernments High-Voltage Direct Current Commission (Nigeria) Infrastructure ConcessionandRegulatory International Development Agency Independent Power Producer Internal Rate ofReturn Joint Venture German development agency Least Cost Plan Liquefied Natural Gas

MASEN MIGA MOU NEPAD NNPC O&M OMVG OMVS OPPI PIB PIDA PIDA PAP PMU PPA PPCT PPP PRG SADC SAPP SE4ALL SNEL SONABEL SONATRACH SONIDEP SSA TNGP TSGP UN UNECA US US VRA WAPP WEF ZRA AID Moroccan Agency for SolarEnergy Multilateral Investment Guarantee Agency Memorandum ofUnderstanding New Partnership for Africa’s Development Nigerian National Petroleum Corporation Operation andMaintenance Organization Gambia River BasinDevelopment Senegal River Development Organization Investment Office for Promoting Private Power Petroleum Industry Bill Program for Infrastructure Development Priority ActionPlan Program for Infrastructure Development: Project Management Unit Power Purchase Agreement Considerations Tool NEPAD Project Prioritisation Public Private Partnership Partial Guarantee Risk Community Southern African Development Southern African Power Pool Sustainable Energy for All Societe Nationale d’Electricite (DRC) du Burkina Société Nationale d’Electricité Algeria’s largest oilandgas company Niger’s petroleum parastatal Sub-Saharan Africa Trans-Nigerian GasPipeline Trans-Saharan GasPipeline United Nations for Africa United Nations Economic Commission United States International Development United States Agency for Volta River Authority(Ghana) West African Power Pool World Economic Forum Zambezi River Authority

V NEPAD Africa Power Vision Concept Note & Implementation Plan VI NEPAD Africa Power Vision Concept Note & Implementation Plan Pillar 5–Mobilise allAvailable Resources Pillar 4–RunAssets Efficiently Pillar 3–Scale upThrough Regional Integration Pillar 2–Drive GDPGrowth withElectrification Pillar 1–Leverage Domestic Energy Resources the enablingenvironment isappropriately developed. Thepillars are: that ensuring also revolution, while skills the commitmenttobolsteredpillars area The by Africans.life forall of quality the improving while growth continent’s economic the strategy. five-pillar drive a will together,Taken pillars has these APV The AFRICA POWER VISION–THEFIVEPILLARS in launchingthe APV: pledge following the made have ministers African foundation, a as projects (PIDA PAP) Plan Action Priority PIDA the Using energy projects to prioritise for accelerated implementation. which to as leaders African agreement achieve among to designed is affordable It Africans. and energy reliabletofor access Concentrating on one of the four key infrastructure sectors of PIDA, the APV is a continent-wide, long-term vision to increase EXECUTIVE SUMMARY strives to improve Africa’s globalcompetitiveness withthe ultimate goalofimproving the lives of Africans. ordinary water, and information and communications technology. Endorsed by African heads of state in January 2012, the programme energy,trans-boundary sectors: transport, (4) four across projects and programs (51) one fifty has PIDA gap.infrastructure Africa’s massive close to order in integration economic regional promotes PIDA (AfDB), Bank Development African the and Africa’s(NEPAD)forDevelopmentPartnershipAgency, New the (AUC), Commission Union African the by Developed (PIDA). inAfrica for Development Infrastructure the Program of objectives on the builds initiative Action” to Vision “From APV The the implementation ofenergy infrastructure projects onthe continent. and finance – recognised the importance of energy in driving socio-economic development. They thus committed to prioritise particular, in power – ministers leaders of Davos, African Switzerland, in meeting (WEF) WorldForumEconomic 2014 theAt AFRICA POWER VISION–CONCEPT NOTE 2015 NEPAD HSGOCmeeting. January implementation endorsement the plan and for noteconceptat Power(APV)package Africa presents Vision This the INTRODUCTION 1 NEPAD brochure, “NEPAD inBrief”, undated. The Vision Energy Visionasarticulated by theProgram for Infrastructure Development inAfrica: “As thecontinent’s Ministers of Power andFinance, we commit to theAfrica Power Vision. We willbuildonthe continent.” energy infrastructure resulting inpoverty eradication andvigorous sustainable development ofthe businesses andindustries by developing efficient, reliable, cost-effective andenvironmentally friendly To harnessallAfrican energy resources to ensure accessto modernenergy for allAfrican households, 1

requirements ofany individualproject stakeholder. specific the meet calibratedto be While can employs visible. it criteria the easily analysis, for factors structure disciplined project a provides key methodology the making by process selection the in complexity of amount the also reduce was to methodology designed The acceleration. possible for projects analyse then and sort first to The methodology filters detailed increasingly methodology. of arigorous a series without as of thought be if attempted may steps These steps. basic six in task sequentially used be to tools analytic of set a is consuming here proposed time and difficult a is which projects, diverse of number a large analysing requires acceleration for projects power Identifying The NEPAD Methodology: PPCT inhibiting factors often are infrastructure developed potentially large economic growth. and environment enabling optimal an of lack a where economies urgent in is most challenge The difficult. very be can – projects of kinds different between let comparisons – useful project making alone individual any analysing Carefully undertakings. multi-part development complex and multilateral are projects powerprivate industry, large Second, the public, banks. donors, the government, including constituencies multiple of requirements the against projects competing weigh makersmust decision First, done. than said easily morehowever, far is efficiently. This, most benefits social and economic yield that projects power to priority give mustmakers decision limited, always are labour, capital time, and of resources that Given viable. equally is course, of project, power proposed every Not success important An 3.1. factor for this Section initiative will be the development in of projects to reach bankability, described financial methodology closure, and commercial operation. the using prioritised and shortened further be can projects transformative, high-priority, identifying in assists PPCT the proposedAPV thirteen of list The broad-rangingforrapid implementation. projects,replicableprojectswith impact, energyregional priority of shortlist a establish to order in projects for selecting energy projects for acceleration via a NEPAD Project Prioritisation Considerations APV’sThe implementation (PPCT).Tool seeks plan operationaliseto its concept note by a proposing methodology (rationale and process) By filtering potential AFRICA POWER VISION–IMPLEMENTATION PLAN The Exhibitbelow provides further detail onthefive pillars: climate change affordability andinview of cleaner sources withinour the most cost effective and sufficient, withafocus on natural resources, whichare Africa willleverage itsown Energy Resources Leverage Domestic ensure aneffective and efficient power sector public andprivate sectoracross skills, abroad range to ofdisciplines, required at various stages ofproject development. include Thesewill Africa willbuildtheinstitutional and skills human and capabilities Skills Revolution - Identify specificscarce skill categories (i.e. technical,legal financial, - Seekopportunities to leverage international capabilities tobuild vigorous sustainable development ofthecontinent developing efficient, reliable, cost effective andenvironmentally friendlyenergy infrastructure resulting in poverty eradication and To harnessallAfrican energy resources to ensure accessto modernenergy for allAfrican households,businessesandindustries by African Power Vision programs to deliver against thesescarce skills skills required to deliver bankable feasibility studies)development and African capabilities (secondments, transfers) global solutions also implementing off-grid to thoseconnected, while sufficient energy to deliver industry with /business, rate by90% for 2040and residential electrification Africa willachieve an80% with Electrification Drive GDPGrowth cost =US$800billion-1trillion energy delivery provide scale andspeedup corridor development to regional integration and effective and efficient Africa willdrive towards Regional Integration Scale upThrough Overall Capital robust andcoherent power sector. Africaestablish will the right environment enabling to grow developand a Enabling Environment - Transparency andmonitoringdelivery of throughcentral mechanisms - Sufficient political will to ensure appropriate regulatory environment - Astable andpredictable investment environment that effectively - Afinanciallyviableandstandalone power sector that ismoving and resources attracts theprivate sector towards cost-effective tariffs losses distribution and collection generation, transmission, maintenance to minimise investing inoperations and our assets efficiently and Africa willfocusrunning on Efficiently Run ourAssets the globalpartners driving collaboration with the private sector, while attracting and promoting multilateral partners, while African countries and domestic resources, fellow Africa willdraw on Available Resources Mobilise all VII NEPAD Africa Power Vision Concept Note & Implementation Plan VIII NEPAD Africa Power Vision Concept Note & Implementation Plan • • • • • • • • • • • • • ep One:APV’s five Pillars • • A summarisedassessment oftheproposed APV projects against theNEPAD are PPCT presented below: • Project Sahara Solar Desertec Project Wind Power Boulenouar rjc oreType Source Project rjc oreType Source Project

power installations globallyindicates that wind-power generation is commercially andtherefore financiallyviable. The energy diversification and the replacement of costly imported oil in meeting the current energy deficit and growing demand. Will a comprehensive plansupported by the French Development Agency andthe World Bank. executed isasignificant task. the potential to reach thescale initially envisaged. up. However, a phased approach to introducing renewable energy technology to the region would assist in understanding Giv appears to bewaning supportfrom initialshareholders and stakeholders . The of the construction ofa2,700kmtransmission system, withanindicative capacityof 4,500 MW. Goes handinwiththede amount ofthepower generated isexported to Europe. African countries involved. The project’s trans-continental impact surpasses its regional impact, particularly if a significant Success The A Will Success of amajorwindproject intheSahelregion . Project willincrease total installed capacity inMauritania by almost 40%. St St St 14. 13. 12. 11. 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. St St St

ep Six:SelectingandFine Tuning theProject Shortlist ep Five: Project Readiness vs. Value ep Four: Project Readiness Thresholds ep Three: NEPAD PPCT: ep Two: Group Projects by Technology mas

en the scale of the vision of the Desertec initiative, it is clear that this is support

fragility of support for Desertec raises questions over the future and perhaps because of Desertec’s sheer scale, there s be the largest renewable energy project in Mauritania and will go a long way in fulfilling the government’s policy of policy government’s the fulfilling in way long a go will and Mauritania in project energy renewable largest the be likely raise the political and economic profile of Mauritania, while importantly while Mauritania, of profile economic and political the raise likely Community Eng En Skills andCapacityDe Financial andCommer Priv Cr Leas Abundan Bal T F R T R ynchronisation of the policy, legal, and investment frameworks to allow a project of this scale and complexity to be echnology/Energy Source ransformative Potential avourable andReceptive Policy/Legal/Investment Environment eplicability/Scalability egional Impact and SOMELEC is being restructured and recapitalised under recapitalised and restructured being is SOMELEC and finalised been has sector electricity the for plan ter edible Private Sector Sponsors/Promoters/Developers vironmentally Neutral ful establishment ofthe project willhave apositive impactonthe region (the northwestern corner ofAfrica). ful implementation of the project the of implementation ful anced Energy Mixfrom Different Sources ate Capital/Financing t-Cost Plan . The scale of wind- of scale The beimportant. will (DFIs) institutions finance bilateral development and multinational of t andLow-Cost Fuel andSecure Contracts consideration projects for Other consideration projects for Other agement Plan velopment cial Viability transmission and generation Solar- generation Wind- velopment ofanotherPIDA project, theNorthAfrican Transmissionconsisting Corridor, would raise the political and economic profiles of the six North and Central and North six the of profiles economic and political the raise would Sahara Western North- Mauritania Boulenouar, Location Location (by 2050) 100 GW 0 WUS$200 100 MW Size Size

not aproject that could bereplicated or scaled TBD million Cost Cost demonstrating the financial viability financial the demonstrating Europe) Middle East and energy trade (Africa, Increase regional project intheSahel of the first majorwind demonstration effect energy trade andcreate Increase regional Regional Impact Regional Impact

• • • • • • • • • • • • • • • Project Hydropower Chute (BC) Inga IIIBasse Project Hydropower Batoka Gorge Field Geothermal Baringo-Silali rjc oreType Source Project Type Source Project Type Source Project

Lead Will T S Infrastructure ChampionInitiative , theproject enjoys supportat the highest levels for theparticipating governments. between bothcountries. with hydropower projects. ahead forge to Basin River Zimbabwe the within countries other of confidence the increase also will installed capacity; GDC K As K Supply lo for theDRC, theregion andthe continent. required to develop a replicable model – including developers, funding, best practices, reforms etc. – it could pay dividends Signific R Has the Success World Bank. Select Success agreement model, although the construction and operating and maintenance of the power plant will most likely be an IPP. field andtogether withadvancing development oftheMenengai field, ithasinvited and received expressions ofinterest. participating governments. There isagreat opportunityto export power andimprove electricity securityandeconomic growth. a possible spin-off to SouthSudanandBurundioncetheinterconnections are completed. counterparts lookingto undertake similardomestic hydropower projects. ransmission lines,accessroads, andotherfacilities are alsoincludedintheproject design. APP’s energy generation mixwillbesignificantly improved through thisgreen hydropower project. enya’s Geothermal Development Company Developmentenya’s Geothermal enya’sEnergy Policy eplicable and could be the first step in the region towards fully exploiting the 40 GW potential of the Grand Inga Project. a NEPAD Presidential Infrastructure Champion Initiative project, create is currently exploring a range a exploring currently is implementing agency is the Zambezi River Authority (ZRA). Having been (ZRA). Authority River Zambezi is the agency implementing as one of the hydropower projects in Africa demanding particular demanding Africa in projects hydropower the of one as ed by theAfrican Caucus ant number of complexities, however, when seen in the context of its of context the in seen however, when complexities, of number ant ful implementation of a hydropower project of this vast scale vast this of project hydropower a of implementation ful would implementation ful potential to raise thepolitical and economic profiles ofthe DRCanditsbeneficiaries . w-cost, clean,baseloadelectricityto supportthefast growing economies ofKenya, Uganda, andRwanda with and 1,200 during the operation phase, split equally split phase, operation the during 1,200 and construction during annum per jobs permanent 6,000 PIDA projects Additional Summit Financing for Dakar PIDA shortlist consideration projects for Other estimates potentialgeothermal the within Great Rift Valleyat MW between MW. 7,000 to 10,000 – generation Hydropower – generation Hydropower generation Geothermal – , including a joint development joint a including options, model business partnershipprivate public of increase Zambia’s installed capacity by 50%andmore thandoubleZimbabwe’s (GDC) was mandated to be the lead agency in developing the geothermal the developing in agency lead the be to mandated was (GDC) Congo (DRC) Republic of Democratic Congo River, Inga Falls, Basin Zambezi River Rift Valley East African portion ofthe Kenyan Location Location Location ,0 WUS$12-14 4,800 MW Increase regional US$6billion 1,600 MW US$2billion 2,000 MW Size Size Size the project enjoys supportat thehighest levels for the will add confidence to other regional economic regional other to confidence add will , the investment the potentialtransformative , billion 400 MW for thefirst Cost Cost Cost oiae a a EA Presidential NEPAD a as nominated entire SSA region potential to impact Large scale, has Project (40,000 MW). Part ofGrand Inga coordination Zambezi River dam mix, andimprove SAPP energy generation energy trade, improve economic development energy trade and Increase regional Regional Impact Regional Impact Regional Impact attention from the from attention

IX NEPAD Africa Power Vision Concept Note & Implementation Plan X NEPAD Africa Power Vision Concept Note & Implementation Plan • • • • • • • • • • • • • • • Project Power Regional Maria Gleta Power Pool West Africa Project Hydropower Sambangalou Project Power Regional Domunli Power Pool West Africa rjc oreType Source Project Type Source Project rjc oreType Source Project

comprises regional electricity utilities from Ghana, Togo, and Benin. African Development Bank(BOAD) –have expressed interest inproviding significant project preparation funding. Multila Priv to electricityinthe region. Con region (oilandgas inthe east mainlyand hydro inthe west) whichsuggests substantial integration. Ther energy availability, reducing the risks associated withBenin andGhana’s current dependence onbiomass. Will Fund (ABREF)andAfrican Development Bank, are potential The Kaléta Damare now PIDA projects. Will institutions and private sector financiers. It will play a lead role with support of ECOWAS and WAPP in project development.OMV regulations applicable withinOMVG countries andthose oftheAfDBhave beendone . De Will The Pr Go Se Loc Institutions will contribute to skills development in the following manner: conceptual models, technical assistance, technical models, conceptual manner: the following in managementfinancial appraisals, feasibility studies, and businessand strategic planning. development toskills contribute will Institutions default risks ofECG (Ghana’s utility) grid stability. for allowing (CTB), Backbone Coastal Transmission the utilise and 2011 early transmission losses. ocess for aWorld Bankpartialriskguarantee (PRG) initiated and PPA negotiations beingfinalised. lected to serve as an emergency power supply to the regional interconnection grid during the electricity crisis in crisis electricity the during grid interconnection regional the to supply power emergency an as serve to lected tailed vernment of Ghana is workingtowardsis Ghana vernmentof ated in the western region of Ghana where a Ghana Gas processing plant is being built in order to ate partner,ate tingent on the availability of transmission and distribution in the region, could have a be a multi-purpose reservoir, with E address increasing demand and address the continued electricity and water shortages in the member countries. Both the Sambangalou Dam and the e is significant political will for the development of the regional marketpower thedevelopment regional significant the will– political of is for resourcese the complementaryare in c between the four countries, presenting a unified policy to development finance development to policy unified a presenting countries, four the between co-ordination for responsible is G COWAS Bank for Investment andDevelopment with the potential to tap the African Bio-fuels and Renewable Energy ontribution of development agencies to skills and capacity development for the region willbe considerable. region the for development and capacity to skills agencies development of ontribution ea DI – nldn te fB Wrd ak EOA Bn fr netet n Dvlpet EI) n West and (EBID) Development and Investment for Bank ECOWAS Bank, World AfDB, the including – DFIs teral Environmental and Social Impact Assessment (ESIA) with the Resettlement Action Plans (RAPs) Plans Action Resettlement the with (ESIA) Assessment Impact Social and Environmental consideration projects for Other Summit Financing for Dakar PIDA shortlist consideration projects for Other and lead the special-purpose company which company special-purpose the lead and project the develop will (AFC) Corporation Finance Africa transmission and generation Gas – – generation Hydropower generation Gas – an installed capacity of128MW and the mean energy production will be 402 GWh per year. utilise a more cost-effective fuel (gas) than crude oil. Will ensure that the region has . resolving issuessurrounding thesupplyofnatural gas aswell asliquidityand Novo) (near Port Benin Guinea Senegal and Gambia River, Ghana Western Location Location Location

sources ofdebt and/or equitycapital . 5 WUS$781 450 MW US$1.108 128 MW 5 WUS$600 450 MW Size Size Size increased trade, regional integration, andintegration, regional trade, increased million million million Cost Cost Cost transformative impact on access trade andgridstability integration, power Increase regional regional integration power) approach to multi-sector (water and and contribute to a trade, energy security Increase regional power trade andgridstability integration, power increasing regional into theregional grid, Intended to connect Regional Impact Regional Impact Regional Impact reduce incremental o meet to

• • • • • • • • • • • • • • • Pipeline Algeria Gas Nigeria- Project LNG to Power Ghana 1000 Line Transmission Interconnection Central African rjc oreType Source Project Type Source Project Project

N Success currently runningoff expensive light crudeoil, and replace oil, coal, anddiesel withLNG asan energy source. W Aims Terminal (Calabar, Nigeria), through Niger to HassiR’Mel inAlgeria, impactingBurkina Faso andSouthernMali. Will Will ha purchase ofpower. Go track the additionofcritically needed power tothe national grid. fast-to partners project the allow toframework regulatory environmentand enabling an createto is Government’srole De for theparticipating governments. gaining confidence andestablishing similarprojects. A Risk of NorthandWest African economies. funding. Private sector developers/operators willbe sourced through competitive bidding. A Cameroon andNigeria. South Africa; South Eastern Highway: Katanga, Zambia and Zimbabwe to South Africa; Northern Western Highway: Gabon, N P sources aswell astheimproved qualityandreliability ofsupplyloadacross theregions . Will Will power generation andtrading alonganarc stretching from Angola to Nigeria. En otential off-takers include: ominated as a orth Easternorth Highway: Republic Congo,Westernof South Egypt; and Sudan, Highway: Botswanaand Angola,toNamibia Resettlement ActionPlan(RAP)andanEnvironmental andSocialManagement Plan(ESMP) shouldbe completed. ill add reliable base-load reliable add ill PPP s tails four segments of interconnections, each totalling less than 3,000 km, which will allow for the for allow will which km, 3,000 than less totalling each interconnections, of segments four tails veloped as a vernment of Ghana will also facilitatea also will Ghana of vernment s are generally related to security, and contractors financing, . allow for the optimisation of existing and new generation sources, striking an improved balance of different generation promote regional integration amongmember countries aswell asconnecting thetwo power pools SAPP and WAPP. also to ve apositive impactonNigeria, Niger, andAlgeria (thecountries that are participating directly inthe project). ful development of a project of this magnitude and is recommended. The transmission lines are envisaged to be funded through private sector or public or sector private through funded be to envisaged are lines transmission The recommended. is tructure diversify theexport ofNigerian natural gas, whilst on a regional level, a te ieie nal a ,0 k ln fo Qa Ibom Qua from line km 4,400 a entails pipeline the as directly impact theWest andNorthAfrica regions, Summit Financing for Dakar PIDA shortlist consideration projects for Other purely private sector IPPproject , requiring no direct financial contribution from the Government of Ghana. NEPAD Presidential Infrastructure Champion Initiative, and therefore enjoys support at the highest levels PIDA projects Additional oreType Source , as well as help lower the cost of power in Ghana when compared with plants with compared when Ghana in power of cost the lower help as well as generation, of gas Transmission generation Gas – Transmission and potentially other power off-takers power other potentially thelong-term agreementand for withECG Niger) Algeria (via Nigeria to Ghana Western Location Location extended) project is Chad (ifthe Guinea and Equatorial segments), (first 4 and Gabon DRC, Angola Cameroon, Nigeria, Location transformative nature is likely to result in other member states annum meters per billion cubic capacity of30 km long, 4,400 US$1.916 1,300 MW Size Size MW capacity 4,000long, 3,800 km ieCost Size will foster the cooperation and integration billion US$ 10-13.7 power +LNG Phase 1 billion for Cost Cost S ilo Expandregional power US$ 5billion and desertification against deforestation as assist inthefight sub-region aswell opportunities inthe up economic growth economies ofandopen Integrate the power grid stabilise the region’s imports, helping to dependence onpower greatly reduce Ghana’s of SouthAfrica) andwill project inSSA (outside single generation power Will bethelargest the region of supplyloadacross quality andreliability generation andimprove Improve balance of generation sources. existing andnew trade andoptimise Regional Impact Regional Impact Regional Impact optimisation of optimisation

XI NEPAD Africa Power Vision Concept Note & Implementation Plan XII NEPAD Africa Power Vision Concept Note & Implementation Plan • • • • • • • • • • Line Transmission Kenya Tanzania- Zambia- Line Transmission Interconnection North-South rjc oreType Source Project Project

a distance of2,200 km. implementation. Thereafter, will behanded over toalegal entity jointly owned by the three governments. A funding andalsoto minimise the impactofprivate sector-driven investment return requirements. In P East), openingupavery large power market opportunity. Interconnector,ArabPan Middle the the to coveringEgypt through (and Egypt as far as to SAPP the link Could COMESA. Join En job creation andhelpalleviate poverty . growth. economic regional impacting positively routes,export its along residences serious technical orenvironmental challenges, the transmission tariff shouldbe very competitive. F Zambia, Zimbabwe, andMozambique to SouthAfrica. N P En Cr Grand Renaissance plant to centres theload ofEthiopia. segment is the construction of a 500 kV alternating current (AC)line to evacuate the planned 6,000 MW from the Ethiopian Will the EAPP andtheSAPP. South Sudan, Ethiopia, Kenya, Uganda, Tanzania, Malawi, Mozambique, Zambia, and Zimbabwe to South Africa, easibility studies needto beundertaken, but analysts are confident about commercial viability. As there seems to be no otential to improve the availability of (cheaper) energy sources to mining, industries, businesses, agriculture, and agriculture, businesses, mining, industries, to sources energy of (cheaper) availability the improve to otential otential off-takers include : orthern Highway: Sudan and Egypt, South Western Uganda, Rwanda, Tanzania and Burundi; South Eastern Highway: Eastern South Burundi; and TanzaniaRwanda, Uganda, Western South Egypt, and Sudan Highway: orthern tended to be to tended oss-border project tails the construction of a transmission line that will that line a transmission of construction the tails tails the construction of an 8,000 km, 3,000 - 17,000 MW transmission MW capacity line 17,000 system - 3,000 km, from through 8,000 Egypt Sudan,construction an tailsthe of tly sponsored by the governments of Zambia, Tanzania, and Kenya. Both Zambia and Kenya are member states of states member are Kenya and Zambia Both Kenya. Tanzania,and Zambia, of governments the by sponsored tly c spanning the two power pools and participating countries. One such One countries. participating and pools power two the spanning segments interconnected multiple omprise o aae h poet during project the manage to management unitowned jointly by thethree governments willbeset up infrastructure of this nature is needed to ensure facilitating and balancing demand with supply across borders . Summit Financing for Dakar PIDA shortlist , partly to facilitate mobilisation of concessionary of mobilisation facilitateto partly developed by thepublicsector inthethree countries , consideration projects for Other oreType Source Transmission Transmission Kenya Tanzania and Zambia, Location South Africa Zimbabwe, Zambia, Mozambique, Malawi, Tanzania, Uganda, Kenya, Ethiopia, South Sudan, Egypt, Sudan, Location coveringconnect theZambian gridto Kenya, viaTanzania, capacity MW (400kV) 400long, 2,200 km Size capacity -17,000 MW 3,000long, 8,000 km ieCost Size billion > US$1.1 Cost B Increase cross-border TBD Potential to boost local and regional and local boost Potential to regions growing economic throughout rapidly assist in grid stability energy trade and Increase regional Regional Impact (SAPP) African Power Pool (EAPP) andSouthern Africa Power Pool and between Eastern energy trading within Regional Impact connecting

3 2 can befound intheAnnex. potential project each describing briefs profile Project projects. potential (13) thirteen the of each to applied was PPCT The and commercial operation. closure, to bankability, financial projects be developing for rapid will impact initiative this for factor success regional important An with broad-ranging andallows decision implementation. projects projects energy potential replicable filters transformative, high-priority, PPCT identify The to makers (PPCT). Tool Considerations Prioritisation Project NEPAD the via the APV concept note, which proposes a methodology (rationale and process) for prioritising energy projects for acceleration HSGOC meeting the in January 2015, as it at was not possible in endorsement Malabo. The package containsfor an implementation plan planimplementation for operationalising and note concept APV the present to is package this of purpose The • • • • the APV’s up firmed have meetings additional various leadership, Africa’sobjectives andimplementation: of gatherings annual key above and Over • • • • • The APV’s leadership includes: leaders asto whichenergy projects to prioritise for accelerated implementation. focuses African It among agreementachieve to designed Africans. keyenergy.fouris infrastructurePIDA: the APV sectorsof of The one for just on energy affordable and reliable to access increase to vision long-term continent-wide, a is APV The Africa’s globalcompetitiveness, withthe ultimate goalofimproving thedaily lives ofAfrica’s people. improve to strives PIDA 2012, January in state of heads African by Endorsed technology. communications and information Africa’s to close order in integration economic massive infrastructure regional gap. PIDA promotehas 51 programs and projects to across 4 sectors: (AfDB) energy, transport, Bank trans-boundary water, Development and African Development Africa’s the for Partnership and New(NEPAD), (AUC), Commission Union African the by developed was PIDA (PIDA). Africa in Infrastructure Development for Program of the objectives the on builds (APV), Vision Power Africa the called initiative, The implementation ofenergy infrastructurethe projects onthe prioritise continent. to committed and development socio-economic of driver a as energy of importance the recognised finance) and power of particular, ministers (in leaders African Switzerland, Davos, in meeting Forum’s2014 Economic World the At • • • The Dakar FinancingSummitinJune2014agreed to thefollowing: NEPAD AUC, as the entities sector Agency, private UNECA, AfDBandtheDevelopment BankofSouthern Africa and (DBSA). multilateral African, such as well as Ghana and Cameroon Egypt, Rwanda, The key participants at these meetings included the ministers of energy and finance from Nigeria, South Africa, Liberia, Togo, 1 NEPAD “APV Briefing Note”, undated. NEPAD brochure, “NEPAD inBrief”, undated.

The The AP Dak Annual AfDBGr WEF Afric A Dr Dr Mr Dr Dr Guinea to secure buy-in from African heads ofstate. including the Nigerian Ministry ofFinance, AfDB, andtheU.S. Agency for International Development (USAID). energy technologies andgas-to-power projects, andhave adequate regional diversity. private high-level principalsmeeting U African Finance Ministers Meeting (28 March 2014, Abuja, Nigeria) . CarlosLopes, Executive Secretary ofthe United Nations Economic Commission forAfrica (UNECA) . Ibrahim H.Mayaki, CEO, NEPAD Agency . Ngozi Okonjo-Iweala, Coordinating Minister for the Economy andMinister ofFinance, Nigeria . Nkosazana Dlamini-Zuma,Chairperson, African Union(AU) V will include a draft list of 10 priority projects, including 5 PIDA projects and 5 additional projects that include renewable . Erastus Mwencha, DeputyChairperson oftheAUC INTRODUCTION ar Financing Summit (14-15 June 2014, Dakar, Senegal) – two meetings: informal APV working group meeting and meeting group working APV informal meetings: two – Senegal)Dakar, 2014, June (14-15 Summit Financing ar APV initiative and list of priority projects will be presented at the NEPAD HSGOC and AU Summit in Malabo, Equatorial NEPAD Agency will continue to drive the APV process with active support from the working group to be established be to group working the from support active with process APV the drive to continue will NEPADAgency a (8May 2014, Abuja, Nigeria) oup Meeting (19-23May 2014, Kigali, Rwanda)

3 2 1 NEPAD Africa Power Vision Concept Note & Implementation Plan 2 NEPAD Africa Power Vision Concept Note & Implementation Plan 2 common purpose to foster thedevelopment ofenergy infrastructure throughout Africa. a share Africa Power and NEPAD Agency The agenda. development infrastructure and integration NEPADregional Agency’s Africa’s on Power the and build collaboration model new will continent.transactions This the throughoutprojectsenergy of In September 2014, growth andenablesuccessful governance ofagrowing power sector throughout sub-Saharan Africa. prioritise and address key legal, regulatory, and policy constraints to investment, and to implement measures that will sustain date to more than US$20 billion. Adopting a transaction-centric approach, the Power Africa partners work closely together to to AfricaPower under commitmentsprivate total the bringing commitments, sectorprivate new in billion US$6 announced access goals to 30,000 MW of additional capacity and 60 million household and business connections. President Obama also and capacity the Power tripling Africa’sthe increase also assistancetocontinent, while in year the across per impact million Leaders Summit in Washington, DC,African President Obama announced a renewed thecommitment to Powerduring Africa, pledging US$ 300 2014, August In Africa. sub-Saharan in access electricity double to others with working of aim the with AfricaPower launched Obama PresidentU.S. 2013, In Africa. sub-Saharan in sector electricity transformthe anotherto opportunity presents companies sector private 80 than more and governments, African Nation’s and donors United other the initiative, Sweden, SE4ALL of Government the Commission, Union African the Bank, Development African the Bank, Power Africa, apartnership ledby theGovernment oftheUnited States ofAmerica, alongwithpartners suchastheWorld increase ininter-regional energy trade, aswell asregional petroleum andgas pipelines. as access to electricity. PIDA’s plans also include transmission lines to connect the continent’s power pools and permit a large well as toconsumption, agricultural and industrial, needed household, rising from resulting electricity increases demand forecastedpowermeet the generate to projects hydropower major ThePIDA of development the of the continent. for calls plan infrastructure energy development sustainable and vigorous eradication poverty in resulting infrastructure energy and cost-effective, friendly environmentally reliable, efficient, developing by industries and businesses, households, African all for energy modern to access ensure to resources energy African all harness to is PIDA in articulated vision energy The (UN). Ithascreated afinancingwindow for sustainable Nations energy development. the United of initiative (SE4ALL) All for Energy Sustainable the of hub African the is AfDB The reform. institutional and policy infrastructure, and integrating growth, economic 6% least at enable to energy of cost the reducing for reliable and calls also access to forincreasing calls that It population. the vision of 50% to cooking energy for modern fora to access and 2015, by population the of 35% affordable energy for and advocated put forth has NEPAD level, continental the At continental positionandvision. of a realisation the and priorities regional on inform best can initiatives regional These Network. Planning Energy Regional the strengthen others, African among to, Ministers Roadmap Southern Energy the the in reflected Africa, is position Southern (SADC) Community’s Development In Eastern Africa, notable. 2006. are In Initiative in Industrial Africa,Desertec state North the In and vision. Plan access Solar of Mediterraneanenergy heads the an including its 2006, to in adopted was strategy was presented enhancement access energy that regional a Plan Action Energy an developed has Community strategy,which energy regional wasadopted statebyof heads the countries.member 15 its of a CentralIn Africa, Centralthe African Economic Monetaryand on paper white a developed has (ECOWAS)States Africa West of Community Economic the Africa, sector. Africa’sIn West energy of advancing vision acommon are driving initiatives and activities of set broad A position on key emerging energy issues isindeed timely, alongwiththe consideration of a continental visionon energy. level that policy, institutional, technical, and other support be given country the now at demands have and Africa, led across and to globally innovations thepolicy of regionally, realisationdiversityprojects the some that scaling articulatingof a continental variation in However, energy itself. the resource togrowth potential across the contributing continent, while the constraints near absence power of localis 5 4 available at http://www.whitehouse.gov/the-press-office/2014/08/05/fact-sheet-powering-africa-increasing-access-power-sub-saharan-africa “Fact Sheet: Powering Africa: Increasing Access to Power inSub-Saharan Africa”, the Office ofthe Press Secretary, The White House(United States) website, Sourced from Draft Africa Power Visiondocument, by the NEPAD Agency, May 2014

AFRICA PO RATIONALE Power Africa signed anMOUwiththeNEPAD Agency to collaborate on and accelerate the development WER VISION:CONCEPT NOTE

4 5

• The key issuesAPV aimsto address include: poverty eradication andvigorous sustainable development ofthe continent. and industries by developing efficient, reliable, cost-effective, and environmentally friendly energy infrastructure, resulting in businesses, households, Africanenergyfor all modern toenergyresources African ensureaccess to all harness toseeks APV long-term vision. and consensus, position, African an require but development, for Africa powering of goal the to link initiatives these of All and country-level energy accesstargets andstrategies. regional- with harmonisation its with along consultation, wider and position African an requires SE4ALL prevails, challenge access energy global the of sharelargest the where is Africa Since sources. energyrenewable from coming energy of share the of a doubling and efficiency energy of doubling a with along 2030, by countries all in access energy universal promote • • • • 6 rates to lower costs for theendconsumer. and collection asset functioning their to improve utilities their help will Governments aspossible. effectively and efficiently operate as assets strive to existing its overall will Africa their continent’s costs, reduce Tothe and assets of out most the get to minimise generation, transmission, distribution, and collection losses. Pillar 4 – Run Assets Efficiently: Africa will focus on running its assets efficiently and investing in operations and maintenance cooperation andimprove planningand execution. generatingnew scaleof the and assets, strengthen of cooperation. types other must Eachpower pool strive regional increase to increase expansion, power of cost capital the reduce drastically logistics or will represent integration Regional in nature, corridors. infrastructure and regional are cases, in many but solutions, national always not are required solutions The and integration regional corridor development to efficient provide scale andspeed upenergydelivery. and effective towards drive will Africa Integration: Regional Through up Scale – 3 Pillar particularly targeted towards thepoor. where the electrification rate is generally higher. In addition, it should actively push and support off-grid solutions as they are urbanised, more are they that fact the by driven business, electrification and industry higher rate for a toaspire also should replicateaverageto It journey, residential by2040. an electrificationthis the 80% continent of goalacross of reacha must it set foreach be must targets achievable However, aspossible. individual country. Indonesia, South Africa, and Tunisia have advanced fromas soon 20% to 80% electrification in 20 years. If Africa is electrification universal achieve to aspires Africa and by2040, rate electrification residential 80% an achieve 90% for industry/business, withsufficient energy to deliver tothose connected, while alsoimplementing will off-gridsolutions. Africa Electrification: with Growth GDP Drive – 2 Pillar As astarting point, governments must be collectively alignedonthe priority set of projects identified byPIDA. drive the development of renewables, and systematic to processes support to global short-term move plans, projects development from least-cost national effective development planning, tolong-term require commercial climatewill operation.This of change. cognisance take that and renewable, and least-cost are that sources capacity building towards work will Africa focus onthe most cost-effective a with andcleaner sources thatare affordable andin view ofclimate change. sufficient, are which resources, natural own its leverage will Africa Resources: Energy Domestic Leverage – 1 Pillar TRATEGY: THEFIVEPILLARS TO ACHIEVE THEVISION The five pillars, theskills revolution andtheenabling environment are fullydescribed below: 2.2 the level, global the At Op. cit., Note 4

R must be addressed, especially for mega infrastructure projects, andparticularly, energy projects. strategic infrastructure through applied business principles? Early-stage project financing is a key challenge in Africa, which Wha attention inthe energy sector? to power Africa’s Wha pursued can be policies more innovative what and development? sector, energy the in finance and investments Ho global initiatives (such as SE4ALL and Power Africa), and how can a common energy sector vision and position be reached? Ho of the existing good practices atthe country, regional, and continental levels, and what canbe learned fromthem?

ecognising the importance of addressing the energy challenge for Africa’s transformation agenda, how can stock be taken w responsive are current legal, regulatory, and policy frameworks in Africa to facilitating and leveraging private sectorfacilitating and to regulatory,legal,Africacurrent frameworksareresponsive in policy w and emerging vis-à-vis visions prevailing country,continental and targets energy the and takenregional,of be stock can w S t are the lessons learned from private sector-led initiatives such as the WEF on accelerating the implementation of implementation the accelerating on WEF the as such initiatives sector-ledprivate from learned lessons the are t policy focusing of terms in Vision Mining Africa and 2025 Vision Water Africa the from learned be can lessons t UN’s SE4ALL initiative SE4ALL UN’s focuses on one aspect of the energy challenge – energy access. It seeks to seeks It access. energy – challenge energy the of aspect one on focuses 6

3 NEPAD Africa Power Vision Concept Note & Implementation Plan 4 NEPAD Africa Power Vision Concept Note & Implementation Plan must make continued efforts andallactionsshould directly support the Vision, which was developed byAfricans. country every APV. and the Each champion grow, develop, and support, to citizens its – importantly most – and donors, of Finally, Africa recognises and welcomes the support of the private sector, multilateral and bilateral institutions, a broad range • • • delivering for critical are below described those environment; enabling significant power sector improvements. the within elements key of number a are There Enabling Environment –Africa will establish the right enabling environment to grow and develop a robust and coherent power sector. • • efficient power sector. of projectdevelopment. These will include public and private sector skills, stages across a broad range at various of disciplines, to ensure an effective and required capabilities and skills human and institutional the build will Africa – Revolution Skills also required to develop arobust andcoherent power sector. achievable.EachpillarsAPVis the the of of However, environment rightcapabilities, enabling the and and rightskills the are some in capabilities, technical cases, financial resources, of and overall best practicecombination sharing. a through other) each on rely (and other each to contribute to able be will will incentivise the right behaviour and allocate the risks associated with power expansion appropriately. Individual countries a through sector private the involve selective combination ofwill independent power producers (IPPs),Africasector. targetedprivate privatisations, and management contracts.the Countries without envisioned expansion capacity of scale the through technical on particular APV,in the deliver to impossible role be indelivering will it Furthermore, investment. additional catalysing and studies, feasibility for afinancing critical support, have will partners of these to its way through All the partners. all multilateral capabilities domestic from resources, possible all leverage and mobilise effectively must Africa partners, whileattractingandpromoting the private sector, anddriving collaborationwiththeglobalpartners. multilateral and countries, African fellow resources, domestic on draw will Pillar 5–MobiliseallavailableAfrica resources: •

be heldto thesamedelivery scrutiny asthat ofAfrican nations toensure allbarriers are swiftly removed as they arise. similar implementation mechanisms. This will enable or faster units, delivery of delivery outcomes. Multilateralcapabilities, and bilateralmonitoring government partners shouldcentral of establishment the through problem-solving ministerial Signific focus onbuildingcapabilities withinboththe government andprivate sector. rightthe resourcesand are toplace deliver.in requirewill This prioritisation ruthless of thatprojects matter, and a strong Ther highly transparent, The cost making value chain, the and electrification. across tariff cost-reflective new capacityfor options cheapest the pursuing and built, are as they a assets new and existing of efficiency the improving towards moving to commitment a In personnel to improve theircapabilities ininternational environments. African export temporarily to opportunities and centres, training building Africa, into personnel global of secondments building, capability classroom-based as such areas in offer their on build to opportunities seek will and support, and aid In development programs inorder to close thegap onthesescarce skills. to completion. Governments must identify the specific gaps that exist, and then focus on building capabilities and broader projects and studies feasibility bankable deliver to sectors,private and public the both in required are which skills, legal Ther predictability, Africa’s aim is to access concessionary financing, in the situations where the government needs to take to needs government equity inprojects. Ultimately, the however, where African governments to bethefunders situations oflast resort. the in and financing, certainty concessionary long-term access this to providing is By aim Africa’spredictability, them. address to able most parties those to allocation risk appropriate and power projects, certaintyinvestors, for off-takers long-term credible for require independent will investors, This assets. existing corporatisation of and (PPPs), partnerships private public through sector private the particular in mechanisms, addition, Africa’s governments will take full advantage of international companies and governments that seek to offer to seek that governments and international companies advantage of Africa’s full take will addition, governments ah fia cuty te oe sco nes o e iacal val ad tn-ln. civn this requires Achieving stand-alone. and viable financially be to needs sector power the country, African each power sector also must create a stable and predictable investment environment that attracts a broad range of funding e must be sufficient political will to ensure that realistic plans are made, the right regulatory environment is established, e are a large set of specific skills that are in scarce supply across the continent. These include technical, financial, and ant effort will be needed to increase the transparency and monitoring of delivery and enable real-time inter- enable and delivery of and monitoring the transparency to increase be needed will effort ant

14 criteria against whicheachpotential project willbe assessed. TheAPV 5Pillarfilters andthePPCT are shown inExhibit 1. contains PPCT PPCT.The the using projects Analyse – Considerations (PPCT) Prioritisation Tool NEPADProject Three: Step Transmission Lines Gas Pipelines Gas Projects Hydro Projects Geothermal Projects Solar Projects Wind Projects Below are the 13projects underconsideration grouped by technology: Step Two: Group Projects by Technology – Identify and group projects by technology so as to be able to compare like projects. Step One:APV’s 5Pillars –Identify andgroup projects inaccordance withthe APV five Pillars strategy. 3.1 • • • • • • provide furtherguidance onhow these13projects could befurthershortlisted. to included are also steps three additional the but package, this of focus primary the are steps three first the that Note they employ can becalibrated to meet thespecific requirements ofany individualproject stakeholder. processbykey making project factors thesetoolsWhile selectionvisible. easily provide structuredisciplined a for analysis, the criteriathe in complexity of amount the reduce to designed been have They acceleration. possible for projects 13 these sequentially in six basic steps. These may be thought of as a series of increasingly detailed filters to first sort and then analyse consuming if attempted without a rigorous methodology. The methodology proposed here is a set of analytic tools to be used Identifying power projects for acceleration means analysing a large number of diverse projects, which can be difficult and time environment anddeveloped infrastructure are often crucial factors inhibitingpotentially robust economic growth. enabling optimal an of lack most where the is developing urgent challenge economies in The difficult. very be canprojects – part undertakings. Carefully the government, analysing any individual including project – let alone making multi- useful complex comparisons are between projects different constituencies power large kinds of Second, ofmultiple banks. development multilateral industry,and private public, the donors, requirements the against projects competing decision weighFirst, done. must than said makers easily more far however,is This, viable. equally is project power proposed every not since alwaysmakerslimited, mostdecision benefits efficiently, social and topowereconomicprojectsmust givepriority yield that are labour,capital and time, of resources that Given action. to vision from APV the move to aims plan implementation The 3

St St St St St St

ep Six:Selecting andFine Tuning the Project Shortlist ep Five: Project Readiness vs. Value ep Four: Project Readiness Thresholds ep Three: NEPAD Project Prioritisation Considerations Tool(PPCT) ep Two: Group Projects by Technology ep One: APV’s 5Pillars THE SIXS AFRICA PO

TEP PROJECT PRIORITISATION FOR ACCELERATION METHODOLOGY

WER VISION:IMPLEMENTATION PLAN Z N Cen N Ghana 1000LN W W Sambang Ing Ba Baring Desert Boulenouar WindP ambia-Tanzania-Kenya Transmission Project Line orth SouthTransmission LineProject igeria-Algeria GasPipeline est Africa Power Pool: MariaGleta Regional Power Project est Africa Power Pool: DomunliRegional Power Project toka Gorge Hydropower Project a IIIBasseChute (BC)Hydropower Project tral African Interconnection Transmission Line Project o-Silali Geothermal Field ec Sahara SolarProject alou Hydropower Project G to Power Project ower Project 5 NEPAD Africa Power Vision Concept Note & Implementation Plan 6 NEPAD Africa Power Vision Concept Note & Implementation Plan EXHIBIT 1 able andwillingto make foreign exchange available to theproject’s service debt. use transparent and predictable licensing and tariff frameworks and procurement processes. In addition, countries should be law,maintain2) stable macroeconomic demonstrate3) policies, goodrepayment records creditworthyand off-takers, 4) and of courts the investorsprivatein of rights the respect/uphold 1) that countries includes also category guarantees).This risk multilateral development banksinternational or financial institutions arewillingtofinance projects and/or to provide partial issued, be can guarantees sovereign (e.g., mitigated properly be can risks 2) investor-friendly),and be is/can environment privateenabling tax regulatory,and accommodateslegal, (i.e., structured thatproperly be can frameworkprojects 1) result, legal a sector.As powerpolicy the the in investment investment have and and energy accept/encourage receptive that and favourable countries a includes with This countries environment. in located projects to given be should Priority 4. Favourable &Receptive Policy/Legal/Investment Environment projectssimilar vianew policiesand/or processes. future for way the pave can that projects 5) and transmission, and trade cross-border off-takers and split of possibility the with 4) projects markets, multiple market or proliferate the can across that models have replicable create that to potential significant projects 3) project, a larger of phase key or first the 2) region, or country a in projects additional realise help to reforms frameworks, and practices, best establishing to lead could that projects 1) include: projects scalable and replicable of APV. Examples under consideration priority given be be should – can scalable result, them a making also as thus and, financing for sponsors/developers “packaged” private credible with those particularly – replicable easily are that Projects 3. Replicability/Scalability from thehigh-level supportofAPV. local andregional boost will and businesses, benefit would and support, international of households and transnational require transformative will projects and large These economies. tomillions access energy provide to potential the have and Projects that are ambitious in scope and size (while still being manageable and achievable from technical and cost perspectives), 2. Transformative Potential the East, West and/or SouthernAfrica Power Pools shouldreceive strong consideration. by promoted particular, and/or supported In projects countries. partner regionaladvantageousfor projects such make help will cross-border This deficits. and facilitate with markets higher-cost level to sell to power surplus at with aregional producers lower-cost connect will flows electricity distribution and transmission, generation, power strengthen that Projects 1. Regional Impact Africa Power Vision’s 5Pillars Available Resources Mobilise all Efficiently Run ourAssets Regional Integration Scale upThrough with Electrification Drive GDPGrowth Energy Resources Leverage Domestic FavorableFavorable &Receptive &Receptive Policy / LegalPolicy / Legal /Investment /Investment Environment Environment CredibleCredible Private Private Sector Sector Sponsors Sponsors /Promoters /Promoters /Developers /Developers AbundantAbundant &Low &Low Cost Cost Fuel&Secure Fuel&Secure Contracts Contracts Balanced EnergyBalanced Energy Mixfrom Mixfrom Different Different Sources Sources Financial &CommercialFinancial &Commercial Viability Viability Skills &CapacitySkills &Capacity Development Development Community EngagementCommunity Engagement Plan Plan TechnologyTechnology / Energy / Energy Source Source PrivatePrivate Capital Capital /Financing /Financing TransformativeTransformative PotentialPotential ReplicabilityReplicability / Scalability/ Scalability EnvironmentallyEnvironmentally Neutral Neutral RegionalRegional Impact Impact LeastLeast Cost Cost Plan Plan PPCT coverage ratio (DSCR), and5)a reasonable rate of return (IRR) to theproject developers when combined with equity. service debt an adequate and maintain debt repay project to flow cash 4) strong tariff, competitive cost-reflective and a 3) availability of a long-term PPA (and a take-or-pay structure), 2) a creditworthy off-taker and credit1) the enhancements include Others if export). necessary, regional for or users end to distribution generation powerfor new accept to capacity the has network local the that ensure must network distribution proposed or existing the is, (that constraintssystem overarching no are there that ensure infrastructure to distribution and transmission future and current the 2) and market, and demand local/regional future and current the 1) of adequacy the electricity,including the formarket and demand is there whether is condition such viability. One commercial and demonstrate financial to project a for met be must conditions of number A 11. Financial&CommercialViability additional sources of capital and/or reduce the cost of capital shouldbeseriously considered. institutions. In this regard, project developers who are able to introduce innovative financing schemes/structures that unlock lending multilateral and/or bilateral 4) and lenders, commercial private 3) developers, 2) funds, equity/investmentprivate 1) example,for including, sources, funding of variety a from provided be may capitalAPV. bySuch priority given be should and success commercial for prospects high havegenerally also will capital the of sources in public or private be securing) of (or process have will that transactions sponsors/developers, private experienced and credible by led projects to Similar 10. Private Capital/Financing including having asubstantial amount ofequity at risk. to completion, through project the to see motivation and strength financial the have must they And country/region. the in their must demonstrate projects similar implementing of record a track Such developers have should capacity. They financial and managerial, operational, technical, viable. commercially and financially, technically, being for in prospects role high lead have the taken have that developers generally –will and/or mini-grid and/or off-grid on-grid, they – be sponsors projects such investing in and private developing, designing, promoting, experienced and credible by led are that Projects 9. CrediblePrivate Sector Sponsors/Promoters/Developers and theirrespective real costs of capital, and fairly allocate new project opportunities among stakeholders. investment program, broken down into annual spend plans. The LCP should take into account public and private stakeholders The LCP should include generation, transmission, and distribution assets and can take the form of a long-term (5, 10, 20 years) Generation, transmission, and distribution projects that fit into regional or national least-cost plans (LCPs) should bepriorities. 8. Least-Cost Plan agreement (quantity and price), ifapplicable (natural gas, steam, biomass, etc.). 1) the including determined, be to needs source fuel adequacy ofthe resource (natural gas,the geothermal, wind,solar,of biomass, hydro), and2)theavailability ofalong-term supply adequacy the Therefore,PPA. the of term the i.e., – project of the duration the for supply fuel reliable and affordable an ensure to place in be must safeguards Contract externalities. considerationinto environmental taking fuels, other with competitive cost and abundant be mustsource fuel proposed The 7. Abundant &Low-Cost Fuel &SecureContracts and changes hydrology, in seasonality, fluctuations with in consumption associated patterns. risks the reducing sources, of spectrum wide a from availability energy have regions and countries that ensure will transactions these Supporting encouraged. be also should – recognitionIn intermittent the of solar,nature and wind of energy withprojects storage– notably, pumped storage schemes Projects that contribute to a balanced renewable energy mix include wind, solar, geothermal, hydro, biomass, and natural gas. 6. Balanced Energy MixfromDifferent Sources should beobtainable. turnkey EPC contract with liquidated damages should to a be obtainable, and 3) an O&M respect contract with With efficiency bonus provisions scale. commercial atfull finally and project’sconstruction operations, and the development 1) a hasbe plan to 2) reasonable, fixed-price, unit, certain,date full-wrap demonstration a larger plant, a pilot in work also will setting for commercial application have to be reasonable. For example, care must be taken to ensure that what works in a laborato

7 NEPAD Africa Power Vision Concept Note & Implementation Plan 8 NEPAD Africa Power Vision Concept Note & Implementation Plan included to provide furtherguidanceonhow these13projects could befurthershortlisted viathefollowing methodology: are also steps additional three following the package, this of focus primary the are steps three first the while that Note The assessment summariesareabove. contained intheExecutiveexplained Summary. as PPCT the against assessed were projects APV proposed 13 the package, this of purposes the For obligations oflocal residents. and provision of benefits to the local community(ies) in the area of the project site while also delineating the responsibilities/ negotiated with andis agreed uponthat by theplan affectedengagement community(ies).community This planimplemented will detailand the corporatedesigned wellentity’s a involvementthrough with impacts the address to made investments Toextentthe capitala projectaffectbe the displacement),will actions in of must as form local (such communities taken and 14. CommunityEngagement Plan community, cost andease ofexpropriation, and jobcreation. adverse impacts. Project social and environmental impacts must be manageable, taking account of their impacts on the local short-term such any reverse and mitigate to executeplans and have must environmentaldamage cause could that Projects 13. Environmentally Neutral and facilitates innovations to reduce costs and/or enhance efficiencies. private sector-sponsored projects. In addition, access to new technology and skills adds competition in theservice value chain administrative,financial, performancethe of via benchmarking pricing and operational and and accountability experience of twinning partnerships. The introductionand of new skills,Africa, know-how,to technologies, andpersonnel capital into theof power industry willsecondments help enable the building, capability classroom-based including programs, development capacity and skills to provide governments and companies international of expertise the access can Projects completion. to where there is a lack of the technical, financial, and legal skills needed to deliver bankable feasibility studies and bring projects Projects should be supported that create opportunities for skills and capacity development. This is especially needed in areas 12. Skills&CapacityDevelopment EXHIBIT 2 effort inorder to beaccelerated in the mediumandlong terms. The fourth filter isshown inExhibit2. additional require will merits, their whatever projects, Other acceleration. short-term consideration for further for on pass permitted to be should complexity.projectthresholdsthreeenvironment,project 3) all and on scorewellthatprojects Only to moving from thresholds the quality/availability, below data 1) thresholds: 2) primary three fall on graded and that assessed are projectsstep, this projects gates.In subsequent slow to serves also it acceleration; and analysis further for gates subsequent to through pass to thresholds primary three meet that projects allowing gate, initial an as acts stepfourth This Step Four: Project Readiness Thresholds Project Readiness Thresholds Acceleration Potential Long Term Acceleration Potential Mid Term Acceleration Potential Near Term Project Readiness aaQaiy/Aalblt rjc niomn Project Complexity Project Environment Data Quality / Availability Term Efforts Likely RequiringLonger Significant Data Gaps Likely toGaps Fill Term Mid GapsAvailable in Data Available for Near Term Sufficient Key Data Efforts RequiringLonger Term Significant Risks Likely TermMid Improvements Aspects &Potential for CurrentSome Issuesin Available for Near Term Sufficient Key Data Term Works Likely RequiringLonger Critically HighComplexity in Mid TermMid in Likely to beOvercome Potential Roadblocks Available for Near Term Sufficient Key Data environment, project preparedness, and project complexity. The project readiness filter is shown in the graphic below as below Exhibit 4. graphic the in shown is filter readiness project The complexity.project and preparedness, project environment, along eight criteria covering all key internal influences on a project’s do-ability. assessed is readiness Project These begin. criteria to construction areactual for ready grouped not) accordingis (or tois it project which to degree the is readiness Project 2. ProjectReadiness EXHIBIT 3 private 3) and capacity, and sector readiness andcapacity. readiness Thecountry/region readiness andcapacity filter isshown sector inExhibit3. public 2) stability, economic and political 1) criteria: capacity and readiness main three on based analysed is project a analysis, facilitate this to completion. For willing its and able areset is projectthe where area the of businesses and people, leaders, local the which to degree the is capacity and readiness region / Country 1. Country /Region Readiness &Capacity about the relative value and cost ofmultiple projects, organised from the broadest tothemost specific. time consuming, requiring the analysis of large amounts of disparate data. The goal here is to compare large amounts of data Identifying the trade-offs between cost and value, and comparing them between competing projects can bevery difficult and undertakenin ultimatecheaply,be of its and difficulties value.project far mayquickly with come excess high-impact a while it can if attractive very be may benefits modest yielding project a example, For produce. to likely is project in termsoftheir completed the them value the and project a to analyse undertaking of is costs the between trade-offs the weighs step This forvalue. acceleration their vs. readiness project candidates are possible which projects in identifying step fifth The Step Five: Project Readiness vs. Value • • means better analysis andoneshouldbe careful when usingestimates or informed opinioninplace ofhard information. can be used to streamline the methodology and to compensate for the absence of some data. As a rule, however, better data in time which abundantto analyse them. In practice, ofbe course, data maywill be lacking and time will inevitably bethere limited. The following shortcuts and available be will data relevant all methodology,three-step this applying when Ideally, •

availability ofcertain risk-mitigation toolswillnotbeanimportant consideration. Omit Crit Extr where the project isset. estimates useful and that may be employed toprovide gauge, for example,can aproject’s readiness orthereadiness orcapacityexperts ofthe country/region of opinions The schedules. and boundaries, deliverables, project on data reliable Apply facing aproposed project. margins). Similarly, completed projects in the same country/region can provide valuable information about the challenges thathavetocreatetype completedused been be can estimates likely of (e.g., metrics financial net key present and value Criteria Dimensions Country /Region Readiness &Capacity apolate Based onHistorical Projects withintheSameCountry/Region orSector Type –Projects of the same or similar Particularly for early-stage projects, it may be difficult to obtain difficult be may it projects, early-stage Expert Judgment whenHard Datafor are Lacking–Particularly hs il ay ewe poet. n lwrs poet fr ntne the instance, for project, low-risk a In projects. between vary will eria withLow DecisionRelevance –This Stability Political & Economic Rule of LawRule of Economic Stability Political Stability Capacity Private Sector Readiness & Corruption Accountability, Transparency, & Government Capacity Bureaucracy &Red Tape PPP Maturity Access to Labor Capacity Public Sector Readiness & 9 NEPAD Africa Power Vision Concept Note & Implementation Plan 10 NEPAD Africa Power Vision Concept Note & Implementation Plan EXHIBIT 4 EXHIBIT 6 secondary value creation filter isshown inExhibit6. a project’s on influences and impact project key The impact. social environmentaland all impact, impact, economicare country/region.These its on covering impact lines main three along assessed is creation value secondary and impact Project 4. ProjectImpact&Secondary Value Creation EXHIBIT 5 The direct project value filter isshown inExhibit5. risks.associated strategicand value,project’svalue,monetary a toaccording grouped are which criteria, main six on based the account into taking also project’slikely effect country’scompletion, its on and region’s analysed project Here, is its a exposure risk. on and power projectto pipeline project a of value (financial) intrinsic the of measure a is value project Direct 3. DirectProjectValue Criteria Dimensions Criteria Dimensions Criteria Dimensions Project Readiness Direct Project Value Project Impact&Secondary Value Creation Project Environment Monetary Project Value Economic Impact Environment Appropriateness ofPhysical Suitability of Policy Environment Political Support for Project Monetary Value Direct Project &Ancillary Economic Efficiency Gain Secondary Industries Promotion Direct Benefits Community Project Preparedness Strategic Value Environmental Impact Project PlanReadiness Fulfillment Front/ Prerequisite Loading Engagement &Alignment External Stakeholder Power Project Pipeline Attractiveness Market Relevance & Emissions Impact Emissions Local Biodiversity Sensitivity Project Complexity Project Associated Risks Social Impact Stakeholders /Sovereign Strength ofProject Developers / Options Risk Exposure &Mitigation Impact LocalAdditional Community Ability Capacity Building Infrastructure Accessibility Complexity Technical & Demands Complexity Criteria Coordination Needs & S4-Implementation &Operation S3-Programme/Project Structuring&Promotion to Obtain Financing S2-Feasibility/Needs Assessment S1-Early Concept Proposal PIDA’s PAP defines four project stages inatypical infrastructure project as follows: either – developer project the a project company oracountry’s milestone, institution –will have to decide whether to continue each developing the project ornot. After tasks. several of consists development project power of phase Each available aboutthetechnical resource, institutional and regulatory climate, access tosuitable andother financing, factors. a first step. However, theproject development time may vary, depending onthe project developers’ experience, information commences. It often can take several years to develop a typical full-size power project with, for example, a 50 MW turbine as phase (O&M) maintenance and operation actual the before phases development keyseveral have typically projects Power OJECT DEVELOPMENT PHASES Once these projects have beenshortlisted, itisimportant to understand thematurity ofeachproject. 3.2 risks andrewards shouldbe closelyaligned. potential privatea of all The expectations stakeholderswith partner’s amatch abilities. closely should project’s needs about project’sunderstoodclearly toacceleraterequirementsbestakeholders.needed should all whatis byespecially– – it Those the means acceleration. That candidatefor a is that projectany engagedin closely be privateshould sectorsand public The perceived risks. companies will be most attracted to high-visibility, high-impact projects whose potential reputational benefits outweigh their Private likely generate results. to quick projects on actors more private focused sector the and complete to difficult are that between the public- and private-sector views of this balance, with public sector actors most interested in accelerating projects a good balance between the difficulty of completing the project and its likely benefits. It is not unusual for there to be tension accomplish or very close to completion will be the least in need of acceleration. Rather, candidates for acceleration must “low-hanging fruit”. easy seem are to general, that projects to show In as advanced so not is but can), soon (or confidence inspire to achievements sufficient generated has it where stage a at is that project a is acceleration possible for candidate good A identified and weighed. after applying the above-mentioned criteria. At this step, the potential trade-offs based on the results of the assessments are well-positioned are that those among acceleration from for candidates possible are that projects identify to is purpose The Step Six:Selecting&Fine Tuning theProject Shortlist

PR

11 NEPAD Africa Power Vision Concept Note & Implementation Plan 12 NEPAD Africa Power Vision Concept Note & Implementation Plan EXHIBIT 7 Similarly, Power Africa defines four project stages inatypical power project asdescribedinExhibit7: 18 Months 6 Months Classifying PowerClassifying Projects by Stage ofDevelopment year 4 Year 3 Year 2 1 Year Day 1 Projects Projects Projects Projects Stage 3 Stage 2 Stage 1 Stage 4 • Construction crew hired • Construction company selected • Equipment suppliers selected • Permitting inplace • Logistical site plansfinalized • Architectural renderings complete Purpose: Break Ground • Negotiate Interconnection Agreement country supportagreement) • Negotiate Implementation Agreement (orotherhost • Negotiate Power Purchase Agreement vehicle (SPV) • Finalize Shareholder Agreement &structure project finance Purpose: Structure project sufficient to attract project • Initiate acquisitionofrights of way for transmission line • Applyfor permits,authorizations, necessary &licenses • Acquire site • Applyfor Feed inTariff • Obtain right to develop project from cedingauthority authorizations Purpose: Undertake longleadtimeactivitiesand obtain Project Structuring Feasibility Pre-Feasibility Project Construction &Completion lenders &providers ofequity • Agree alldebt &equity subscription agreements with • Finalize level ofsponsorsupport • Finalize credit enhancement mechanisms • Finalize &negotiate term sheets withlenders • Lenderduediligence onproject • Develop lenderfinancialmodel • Agree financingplanw/lenders Confirm lenders Purpose: Structure project sufficient to reach FinancialClose Financing Project Development • Assesstax impact&incentives analysis • Indicative project design,choiceof technology, vendor • Finalize resource definition (data gathering &analysis) transmission • Develop planfor acquisitionofrights of way for • Acquire right to purchase site resources to develop project &invest capital Purpose: Refine basecase to supportcommitment of • Estimate project life cycle costs • Estimate project capital costs (estimate accuracy +/-30%) • Duediligence onproject inputs&availability • Resource analysis &data gathering (wind/solar projects) • Interconnection assessment • Site assessment &selection • Legal ®ulatory assessment &identify stakeholders Purpose: Determine project viability financial,etc • Meet allcompletion tests—legal, technical, operational, • Shake down period Outcome: Achieve Commercial Operations Date • Identify lenders &involve lenders innegotiations for disclosure • Prepare environmental /socialimpactassessment &file financing • Develop preliminary Information Memorandum for • Negotiate Operations &Maintenance Agreement Engineer, Procure &Construct (EPC)Agreement • Negotiate for equipment & construction including services, • Select&hire advisors (legal, financial,technical) capital structure, &sources &usesoffunds • Develop financingplan,details ofassets to befinanced& • Detailed financialmodel,incl.cash flow &profitability • Identify equipment vendors &EPC contractors • Finalize project capital costs • Develop &implement community outreach plan Proceed • Outcome: Achieve wet FinancialClose&obtain Notice to effectiveness • Meet allConditionsPrecedent to financedocument lenders • Obtain investment committee approvals ofequity& • Loansyndication • Agree lendersecuritypackage • Prepare &deliver proposal to cedingauthority inputs • Update financialmodelto reflect refined project costs & plan • Assessment ofproject risks &opportunities;riskmitigation • Update capital costs (estimate accuracy is+/-10-20%) • Complete any technical studies required to supportproject • Environmental baselinedata collection commitment offundingfor feasibility study • Outcome: Develop basecase option to support • Initialfinancialplan,includingsources &usesoffunds • Preliminary financialanalysis authorization acquisition • Determine initialproject schedule,includingpermitting& • Est.output (kWh)&unitprice EXHIBIT 8 The three most common types ofPPPs are depicted inExhibit8. future cash flows. particularlyfinancing, because the project can be evaluated on a stand-alone basis based on its perceived risks and expected chain as a whole. Project developers and banks like PPPs because the structure helps make the project attractive for long-term private valuethe sector,on the providedby services follows skills through and ancillary increased competitionoften for and technology new to access gain also Governments services. public investmentin for demand meet to strainedare resources to improve anopportunity provide they because services: having PPPs access to private like capital can Governments speed up the delivery benefits. of infrastructure, mutual particularly when governmental for financial sectors private and public of the capabilities best the combine to aims arrangement the Ultimately responsibilities. and rewards,risks, of sharing and involvement,sector private and public of degrees varying with forms, of variety a take can arrangementcontractual PPP A risks oftheproject, whiletheprivate sector assumes theproject’s construction, financing, and commercial risks. with along costs government’s improvementsperformance. in sectorpublic the theturn, In typically environmental, social, the assumes political, payment and in minimising helps which operations, and construction project in expertise have who for the provision of assets and delivery of services. It is used to allocate responsibilitiespartners andprivate risksand government host tothe thebetween agreement privateoutput-based long-term legally-binding, sector is contract partners PPP The deliver apower project for useby the publicsector. the build to wishing entity project.sector It is a way privateto provide an opportunity for both the the public and private sectors to and share each other’s skills and assets toproject the sponsoring agency sector public the between arrangement a contractual– private (PPP) partnership a public form to is large-scale power projects attract for finance wayto common A Public Private Partnerships that any residual risks that inevitably willremain can beproperly managed. ensure and them absorb to suited best parties the to risks the allocatearrangements should The government. host the and banks, the developers,projectstakeholders: threethe all to fair are arrangementsthatcontractual recommending by done key the powerThe successful craft project projectof risksamong allocation right a is to stakeholders. the tofinancing Thisis The risks inherent inpower projects alsomust bemitigated. 3.3

3 Most CommonTypes ofPPPs MITIGA Build Operate OwnTransfer Build Operate Transfer TING PROJECT RISK Build Operate Own BOOT BOO BOT facility for pre-determined timeperiod, at theendofwhich facility for pre-determined timeperiod, at theendofwhich Private entity &operatingresponsible owning, for building, Private entity &operatingresponsible owning, for building, Private entity responsible for building&operating public facility, butitisnottransferred to publicsector entity & private entity retains ownership ofProject ownership istransferred to publicentity ownership istransferred to publicentity 13 NEPAD Africa Power Vision Concept Note & Implementation Plan 14 NEPAD Africa Power Vision Concept Note & Implementation Plan EXHIBIT 9 Exhibit 9illustrates atypical project finance structure. transparent structure. either have no claims (recourse) or only limited recourse to the project developers. Forming a project SPV is a very clean and the project company level in this newly-created SPV (instead of on the balance sheet of project developers) so that the banks thereforeat held is project the for raised finance stakeholders. three The the arrangementsnegotiated contractual with via flows cash future expected and risks perceivedproject’s the on based solely project a develop to provided then is Finance assets. project’s the of all hold and own to (SPV) vehicle special-purpose a form to is risk project mitigate to way typical A EXHIBIT 10 Exhibit 10illustrates thismethodology. documentation. project the among risks of and 5) risk 4) contractualallocation, 3)risk allocation mitigation, 2) riskidentification,stakeholders. evaluation, risk 1) include would It right the craft to order in followed be must also methodology rigorous a Generally, Risk Identification &Mitigation Process • Different typesof conceptualization phase are identified in risk facedby projects Typical Project FinanceSchematic Equity Investors Agreements Fuel Supply Developers Project Project Company SPV (Borrower) • Identified risks are allocation principle basic risk THE is them--this toequipped absorb allocatedto party best EPC Construction Agreements Equity Investors Project Level • If risk is too• Ifriskis large for responsible partyto accept, • Lossthat avoided not is mitigatedis / compensated party best ableto bearloss to avoid /mitigate & loss, is allocatedremainder to that partybearsrisk to enough assure itismotivated allocatedrisk through liquidated damages by contractual commitments from party that is Maintenance Operation & (O&M) Power Purchase Debt Providers Agreements EXHIBIT 11 The two graphics inExhibit11illustrate most ofthe key risks andmitigants for power projects. Project Structure Must Address Risks to Achieve Financing • Completion guarantee by Project Sponsors liquidated damages • Fixed price,date certain, turnkey EPCcontract with Construction Risks Risks &Mitigants priceceiling) • Long-term fixed pricesupplyagreement (orat least a • Long-term quanititysupplyagreement • Adequacyofresource Fuel Supply • Adequate Reserve Debt Service Account upside • Stable project returns withpotential for aditional scenarios • Generates good coverage debt service understress Economic Performance financialsupportto• Abilityto Project porvide geothermal projects demostrated track record ofinvesting &operating • Experienced&financialystrong strtegic investors with Project Sponsors Technology Risk Environmental Risk Limited Recourse (ifDeveloper) Warranties, Contract, Service RAP EIA, Developer Risk Joint &Several Obligations Force Majeure Insurance Political Risk Offshore Escrow MDB, ECA, PRI,Local Partners, Cost Overrun Risk Capex Reserve Contingencies, Developer Guaranties, Regulatory Risk Pass-throughs, Change-of-law clauses Project Completion Risk Sound Project Economics Completion Tests, Developer Guaranties Turnkey Contracts, Bonds,Retentions, Fuel Supply Risk Put-or-pay • Adequate Maintenance Reserve Account • O&Mcontract withefficiency bonusprovisions Operations Risk • Reviewed by independent engineer Technical Feasibility • Adequate storage &transportation infrustructure pricefloor) • Longterm fixed priceofftake agrrment (or atleast a • Longterm quantity offtake agreement Offtake epta ehooylcne efrac warrantees • Perpetual technology licenses&performance Technology Risks • Continuity ofseniormanagement implementing similarprojects capabilities withdemonstrated track record of • Stringmanagarial, financial,operational & technical Management Legal opinion Legal Risk Operating Risk Recourse, Ratios, Reserves, Security O&M Contract, Clawbacks, Limited Take-or-Pay Macroeconomic Risk Currency Risk Convert./Transfer. Undertaking Payments inHard Currency, Offtaker Risk Credit Enhancement, Liquidity Escrow Take-or-Pay Market Risk 15 NEPAD Africa Power Vision Concept Note & Implementation Plan 16 NEPAD Africa Power Vision Concept Note & Implementation Plan Political Credit Price Market Operating Costs Capital Costs In addition, specific examples ofparticular keyrisks mitigants and for power projects are shownin the tables below. • • • • • • • Risk • • • Risk • • • • • • • • Risk • • • • Risk • • • • • Risk • • • • • Risk

ene tr curr divide e chang chang de de de f limit r r c other mark prices ofc c riv multiple mark impact ofsupplyonthemark mark chang en labour/union pr e higher fix construction problems un incr construction c chang c oreign exchange fluctuations ecognition ofcrude qualitydifferentials eserves dedicated to single buyer artel pricing ommodity price volatility ompletion delays andassociated higherinterest during apital cost overrun xpropriation xcessive maintenance ansparency vironmental clean-up fault ofoff-taker fault offuelsupplier fault ofcontractor al sourcesal ofsupply(existing andplanned) foreseen environmental liabilitiesandother rgy security ease infinancing costs ency fluctuation ed transportation capacity et demand for theproduct e inlegal/tax systems e ingovernment es instandard operating practices e orders indevelopment plan/facility design nd repatriation ed andvariable costs ompeting commodities ets competing for product ets competing for supply oblems et • • • • • Mitigation • • Mitigation • • • Mitigation • • Mitigation • Mitigation • • • Mitigation • • • • • •

e main operator es sele financial hedging indepe liquida fix pol loc g g off entities g le c guar c c floor pricewithsponsor national company can meet allobligations or restrict export ofproduction, andensure that the g agreed prices ormarket prices sponsor undert overruns andschedule delays areful selection ofcreditworthy counterparties ommodity price andforex hedgingtechniques ontracted pricewithsponsors orthird-party buyer overnment investment inthe project overnment assurance to abide by provisions overnment guarantees for obligations of state-controlled overnment undertakings notto curtail production xecution of long-term take-or-pay contracts with buyers tter ofcredit orbankguarantees tablish asystem ofincentives/disincentives forthe ed-price, date certain turnkey EPCcontract -shore escrow accounts al sponsorship itical riskinsurance ct operator withproven experience anteed transportation arrangements tain adequate insurance ted damages from theEPCcontractor for cost ndent review by engineering consultants akings to buypre-agreed volumes at pre- s orthird-party buyer Debt. Project debt can beraised from one ormore offive sources: by andreinvested inthe project) alsocan beusedfor thispurpose. generated (cash flow cash its tests, completion its met has project the stock exchange. local Once a on project the listing by toattractpossible frombe potential equity mightalso portfolioIt set. skill investors, local including venture capital funds, or perceived their and strength, financial size, timing, on based selected are that partners strategic potential from sourced be project, the the often of in Amounts more. project of 20% costcash. or form fromas can 40% little alsovary to can as Equity Equity.hostgovernmentsBanksand generally require projectdevelopers thetocontribute equity to significant of amount a EXHIBIT 12 constructed andcommissioned. Exhibit12illustrates thetypical sources ofequity anddebt for power projects. be can project the ensure to available finance debt and equity haveadequateto need projectspower developersof Project Sources ofFinance conformity withtheir own objectives. best the under and cost, lowest at the acceptable terms and conditions. If these goals can be met, all parties will feel they have timeframe, achieved a win-win-win outcome in possible shortest the in project the finance to goals: financing project Typically a project’s three stakeholders – the project developers, banks, and the host government – wish to achieve the same Financing Objectives ofProject Stakeholders 3.4 Force Majeure • • • • • • Risk

insurr s earthquak fir flood w trike ar FINANCING PO e, explosion ection e Potential FundingSources WER PROJECTS Export Credit Agencies (ECAs) International Commercial Markets Capital Debt Tax Benefits & Project Capital Carbon Credits Equity Funds • • Mitigation

pol interruption) c inconvertibility) ommercial insurance (construction, business itical riskinsurance (expropriation, currency Development International Commercial Agencies (IDAs) Banks Local Reinvested Cash Flow 17 NEPAD Africa Power Vision Concept Note & Implementation Plan 18 NEPAD Africa Power Vision Concept Note & Implementation Plan Finance RaisingApproach not be known until the endoftheproject. the completion tests means that reserve risk has practically ceased, although the final recovery factor of the gas or steam will in its operations phase – where market and price risk often occur. With respect to natural gas or geothermal projects, passing for a reasonable period of time. Completion tests signify that the project’s construction risk has passed – as the project now is post- completion risks. These are tests of the project’s ability to produce 1) at planned levels, 2) within expected costs, and 3) to pre- from project of the transition the signals tests completion the project’s met. Passing havethe completion been tests after debt bank or commercial IDA, ofECA, opportunity refinancing excellent an offer can markets capital particular, the In covenants designed to avoid default unless there are substantive issues that have the potential tolead to payment default. are economics important. project Investorssound and in developers capitalproject the market of instruments quality typically the focus case, on this the in project’sprojects; right cash the flow;for investorsyield for often hungry agreeare to less restrictive particular, In risk. they political assume to and transactions complexinvest in to ability advancingrapidly marketsa havecapital are investors Public others. among Increasingly, sponsorship. the or background project appealing funds, an have that those i.e., pension credits, interested“story” in particularly and companies, insurance funds, mutual managers, fund incremental to pools: access investor their via transactions large very finance to capacity the have markets capital the projects, right the For Capital Markets are banks local from usually shortterm (5years) andat highinterest loans rates (17-20%). most Unfortunately costs. local the project’s finance helps banks local from finance Attracting Local Banks are more likely to accept commercial risks iftheproject issound. like. However, the or structure loan they A/B organisations an through these of umbrella the under project the financing by financing, IDAand/or ECA with associatedrisks residual the only assume likelyareto banks most project, the on Depending International Commercial Banks meaning that they are notsubject to acountry’s rescheduling mechanism dueto lackofforeign currency. “preferred status”,creditor to entitled are IDAs by funded projects Also, ECAs. by required as country specific a from goods or of services theexport to tied not is mitigation risk finance-raising political effort,fromthe i.e., equipment and services of direct government-to-government relationships. One of the attractive features of IDA finance is that it decouples the sourcing These institutions often are more capable than most commercial banks in evaluating the political risks of a project due to their International Development Agencies (IDAs) local sourcing maximise to desire the with offinance sources and expenditures. external attracting between needed is balance ofservices a sourcing Usually The is 85%). value maximum participation. (the their maximising to are key country ECAs of concerns the understanding and approach, aspecific of timing the from equipment, and or goods services of export the to tied is Finance from ECAs couples the sourcing of services and equipment with the finance-raising effort, i.e., political risk mitigation Export Credit Agencies (ECAs) • • • • Project Evaluation Phase I:Gather Project Information project Usually banks. with a project developers of enlist theassistance ofexperienced financialadvisors to help them achieve close financialclose. financial the achieve to order in undertaken be must phases five Generally

if desired. project, the for financings additional for framework and environment appropriate the set 2) to and timeframe, possible interests. Generally, these objectives will include, among others, to 1) achieve the project’s financing needs in the shortest that willneed to be satisfied. De Undert Advise financial resources. Ide velop an initial funding plan for the project, including identifying potential funding sources along with key requirements ntify the objectives of the project developers, including their specific strategies, operating experience, and access to and access experience, operating strategies, specific their including developers, project the of objectives the ntify ake adetailed review andevaluation ofthe project’s commercial, technical, andlegal aspects. them on how to manage their aims for the project by offering objective advice that is intended to be in their best their in be intended to is that advice offering objective byproject forthe aims their manage to how on them

• Develop Optimal Capital Structure • Prepare ComprehensiveOffering Memorandum • Review Availability, Type, andCost ofFinance Phase II:Prepare Offering Materials

• Review Technology andProjectAgreements • Review FinancialModelandApplyStressTests andSensitivityAnalysis • •

Assis R De contractors. whose privateto investments concessions pricing governmentin hostalternative the helps also analysis on This project. the availableof that to similar areis “riskiness” that returns equity the with made comparison a and calculated is IRR project’s the Then scenarios. down-side under DSCRs minimum against determined be then can project the of capacity debt The etc. interest rate, term, loan period, construction inflation, prices, fuel OPEX, CAPEX, assumed: previously was evaluate different used to are the impact on the project’s financial performance and tariff by changing one or more and assumptions analyses if they differ from what tests These project. of the economic cases/scenarios and their impacts on aspects the project’s financial performance financial and ultimately, the on the tariff. on They show performed be must T financing theproject. in participate interest to their establish to order in lenders with discussions in used be to opportunity financing the and restrictions, size andappetite forthe different typesofrisks, etc. of their relative advantages and disadvantages, including factors such as cost, ease of execution, likely covenants and other to limited recourse ornon-recourse operational status going forward. desirable by the lenders until all completion tests are met to the satisfaction of the lenders toenable the project to revert or necessary project’smaybe projectdevelopers,the suppliers,as contracts equipmentthe and from and support credit appropriate other and interests, security waterfall, flow cash structure, capital guarantees, support, equity appropriate include would structure This government). host the and lenders qualified to acceptable still (yet developers project the o o o host government, andbanks. the construction and operations phases from the perspective of each of the project’s stakeholders: project developers, the during outflows and inflows cash analysing by project’s economics the evaluate to used spreadsheet a is model financial The etc.). scenarios, efficiency operating volume, price, (OPEX), expenditures operating (CAPEX), expenditures capital in case and sensitivity cases, which will then also be stressed tested under a variety of financial assumptionsrevenues (differentand cash changesflows under a range of business and financial assumptions. These would include building alender’s base Advise R R R credit enhancement features are contained intheproject agreements. of the off-takers/power purchasers needs to be examined, and whether a guarantee of the host government creditworthiness and/or other the things, other Among agreements. financing of set complete a reviewing on dependent necessarily could potentially cause delaysin construction. scale-up, etc.). o do this, a “base case” (a forecast of future cash flows) must be developed. Then stress tests and a sensitivity analysis sensitivity a and tests stress Then developed. be must flows) cash future forecastof (a case” “base a this, do o eview potential external funding markets for the project and recommend selected sources of finance, with a comparison is this financeable; be must agreements project All counterparties. and agreements project draft evaluate and eview that framework) and regulatory fiscal, duties, customs, tariff, (tax, status licensing and permitting project’s the eview eview and evaluate the technical aspects of the project and any risks inherent in the technology it will employ (integration,

velop an optimal target capital structure based on the project’s strengths, on bankable terms most favourable to most favourable terms on bankable strengths, project’s on the based structure capital target optimal an velop contained intheproject agreements, coverage i.e., the debt service ratio (DSCR). The investment tax credits, accelerated depreciation, etc. and production equipment, and/or services on exemptions duty (VAT) import exemptions, tax added value holidays, tax etc.), royalties, interest, dividends, (income,rates tax givelower as such to examined, be prepared to need developersproject is the government host the incentives tax Any project. the monitoring for costs regulatory associated The The pr t the project developers in preparing marketing materials (including an offering memorandum) describing the project n ass i te rprto ad eiw f iaca frcss n a oe fr h poet showing projected project the for model and a forecasts of financial review and preparation the in assist and ak ne cmot ht h db wl b srie wt a agn f aey n opine ih h covenants the with compliance in safety of margin a with serviced be will debt the that comfort need banks ot oenet ed t dtrie t “oenet ae (.. rvne rcie b te rjc) n any and project) the by received revenues (i.e., take” “government its determine to needs government host oject developers need to determine their investment/funding requirements andexpected economic returns. 19 NEPAD Africa Power Vision Concept Note & Implementation Plan 20 NEPAD Africa Power Vision Concept Note & Implementation Plan A typical finance raising schedule underoptimal conditionsisillustrated inExhibit13. • Phase V: ClosetheFinancing • • Phase IV: Negotiate Term Sheets • • Arrange DueDiligence Visits • Organise Road Shows Phase III:Market theProject EXHIBIT 13 •

DevelopCapital Investment Plan&Costs Optimal Finance RaisingSchedule dios, ne ter udne Svrin muiy hud e avd n te ot oenet hud ge to agree should government host the and waived be should international arbitration. immunity Sovereign guidance. their under advisors), Assis deal onasyndicated orclubbasis. the to close together forward to move conditions and terms attractive most the with lendersstrongest the recommend Assis the project. It Se Arr Visit, ( Ide generally about6to 12). is expected that several (about three to five) term sheets will be received proposing various forms and terms for financing rious lenders willwant to review ofallprojects contracts, assisted by technical andlegal advisors. Assist Negotiate &Close Transaction ange for potential lenders to conduct business and due diligence investigations, including virtual and on-site data rooms. ntify andbringtheproject to the attention tothewidest possible realistic range of potential lenders Prepare Information Memorandum Review Project &TechnicalReview t the project developers to negotiate and close the financing, including all material agreements (assisted by legal by (assisted agreements material all including financing, the close and negotiate to developers project the t andthen proposal, financing ofeach andconditions terms specific the out flushing in developers project the t together withtheproject developers, selected qualified finance providers acceptable tothem. Prepare Model Financial Organize DueDiligence Build Financial Model Financial Build DevelopFinance Plan Analyze Risks Evaluate Bids Task Time in Months 0234567891 11 31 51 718 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 10 Finally for a project to be fully operational, it must achieve its Commercial Operations Date (COD) – the point whenall the – (COD) Date Operations itsCommercial achieve required project “completion must tests” have been met (technical, legal, financial, etc.) –and electricityisactually it flowing. operational, fully be to project a for Finally • • There are two kindsoffinancialclose: EXHIBIT 14 various conditions satisfy must they loans, project on their down precedent. Examples oftypical conditions precedentdrawn are illustrated inExhibit14. to entitled are developers project the Before Conditions Precedent to FinancialClose

by the project developers or waived by the banks. After a “wet” financial close, the project must be constructed and constructed be must project the close, financial commissioned viaa“notice to proceed”. “wet” a After banks. the by waived or developers project the by A satisfied bythe project developers or waived bythe banks. be still must of funds initial drawdown the to precedent conditions more or one arrangements, but financing permanent A suggests that each condition precedent to the initial drawdown of funds has either been satisfied been either precedenthas condition initial funds each the drawdownsuggeststhat of to close financial “wet” of package complete a concluded have lenders project and developers project the that suggests close financial “dry” Accounts Documents Project Insurance Information Financial Documents Project Consents Documents Finance Debt Drawdown Precedent to Technical Conditions Reports Documents Corporate Opinions Legal No Material Adverse Change Forecast & Budgets Process Agents Certificates Assessments Share Env Impact Fees 21 NEPAD Africa Power Vision Concept Note & Implementation Plan 22 NEPAD Africa Power Vision Concept Note & Implementation Plan 29. 30. 28. 27. 26. 24. 23. 22. 21. 20. 19. 18. 16. 15. 12. 11. 10. 9. 8. 17. 25. 6. 14. 7. 5. 4. 3. EPAD brochure, “NEPAD inBrief”, undated 2. 1. 4 13.

Iranian Embassy basedinAddisAbaba, available at www.en.addisababa.mfa.ir Dak Private Power Investment, Zambia, May 2013, available at www.invest-tripartite.org Z “Z available at www.engineeringnews.co.za “N www.en.addisababa.mfa.ir “N Pr (http://graphic.com.gh/news/general-news/32843-general-electric-to-add-1000mw-to-national-grid.html) Online, available at www.engineeringnews.co.za www.en.addisababa.mfa.ir www.hydroworld.com Omenda, GDC, at GeothermalDonors Coordination Meeting, Reykjavik, Iceland, May 2014 Head ofCorporate Communication andMarketing, at Power Africa-AUC Geothermal Roadshow, September-October 2014 (http://www.thenational.ae/business/energy/morocco-is-key-testing-ground-for-desertec-solar-farm-Project) (http://allafrica.com/stories/201011081266.html) (http://green.blogs.nytimes.com) “Eur (http://www.theguardian.com/environment/2007/dec/02/renewableenergy.solarpower) “Ho (http://www.theepochtimes.com/n2/technology/solar-energy-desertec-Project-electric-18824.html) “ “ “ “ “ W “Sambang “DR “ www.en.addisababa.mfa.ir “Ba Pr Pr (http://euobserver.com/wind-energy/115033) “Sahar “Mor “ by LoicConan, Utah Environmental Law, Volume 31, No.1of2011 The White House (United States) website, available at www.whitehouse.gov (http://www.theguardian.com/environment/2011/dec/11/sahara-solar-panels-green-electricity) “Could the “ “F N “PID N N General Electric to add1000MWto national grid”, by Sebastian Syme, October 2014, Graphic Online, available at Ghana 1000gets underway asconsortium inks agreement”, by Natasha Odendaal, May 2014, Engineering News Ghana 1000MWgas to power Project”, ESI Africa Online, May 2014, available at www.esi-africa.com Our GlobalMission”, Desertec Foundation, December 2010, available www.desertec.orgat World’s Most DaringSolarEnergy Project Coming to Fruition”, by Ilya Rzhevskiy, TheEpochTimes, June 2009, available at ambia Tanzania Kenya Power Interconnector, Preliminary Project Information Memorandum, Office for Promoting The Inga 3Hydropower Project”, by International Rivers, available www.internationalrivers.orgat Tunisia: Nation andDesertec SignMoU”, November 2010, available at EPAD “Draft Africa Power Vision”, May 2014 EPAD “APV Briefing Note”, 2014 The Trans-Saharan GasPipeline: AnOverview ofthe threats to itssuccessandthemeansto prevent itsfailure”, esentation “The TSGP Project”,esentation Bello,by DrGhaji Acting Director-General oftheICRC, inHamburg and Hanover, April 2013 est Africa Power Pool website, www.ecowapp.org esentation “GDC’s Geothermal Development Strategy for Kenya: Progress andOpportunities”, byRuthMusembi, GDC, esentation “Geothermal Development in Kenya: Status, Planned Activities and Required Support”, by Dr. Peter act Sheet: Powering Africa: Increasing Accessto Power inSub-Saharan Africa”, theOffice ofthe Press Secretary, ambia-Tanzania-Kenya Transmission Line”, Project Number: E.02.1.6.1.1/E.02.1.6.4/E.02.1.6.2.1/E.02.1.6.2.3, REFERENCES orth-South Power Transmission Corridor, East andSouthern Africa”, by Sheila Barradas, Engineering News, March 2014, igeria-Algeria Pipeline”, Project Number: E.15.1.1/E.15.1.2/E.15.1.3, Iranian Embassy based inAddisAbaba, available at toka Gorge Hydropower Project”, Project Number: E.11.1.2, Iranian Embassy based inAddisAbaba, available at ar FinancingSummitProject Briefs, June 2014 w Africa’s desert suncan bringEurope power”, by Robin McKie, TheObserver(London), December 2007,available at C’s Controversial Inga 3Hydropower Project receives IDA technical assistance grant”, by MichaelHarris, available at opean SolarPower from African Deserts?”, by James Kanter, The New York Times, June2009, available at A StudySynthesis”, by Sofreco, November 2011 occo iskey testing ground for Desertec solar-farm Project”, by April Yee, June2011, The National, available at a windandsunto power EUhomes”, by PhilipEbels, February 2012,available at alou Dam”, Project Number: E.07.1, Iranian Embassy basedinAddisAbaba,available at desert sunpower theworld?”, by LeoHickman,December 2012, TheGuardian, available at

ANNEX

PROPOSED HIGH PRIORITY APV PROJECT PROFILE BRIEFS

Gas Pipelines- Proposed -Nigeria-Algeria Gas Pipeline: High Priority 4,400 km Africa Power Vision Projects Legend

Gas Pipeline Wind--Boulenouar Wind Power Project: Transmission line 100 MW Generation Station

Sub-station Hydro--Sambangalou Hydropower Project: 128 MW Solar--Desertec Sahara Solar Project: 100 GW Gas-West Africa Power Pool- Domunli Regional Geothermal- Power Project: -Baringo-Silali 450 MW Geothermal Field: 2,000 MW

Gas--Ghana 1000 LNG Gas- West Africa Power to Power Project: Pool Transmission Lines- 1,300 MW Maria Gleta -North South Regional Power Project: Transmission Project: 450 MW 8,000 km

Hydro--Inga III Basse Transmission Lines- Chute (BC) Hydropower Zambia-Tanzania-Kenya Project: Transmission 4,800 MW Line: 2,200 km

Transmission Lines- Hydro- Batoka Gorge Central African Hydropower Project: Interconnection 1,600 MW Transmission Line: 3,800 km

23 Africa Power Vision Concept Note & Implementation Plan & Implementation Note Vision Concept Power Africa NEPAD 24 NEPAD Africa Power Vision Concept Note & Implementation Plan Wind –BoulenouarPower Project Project Sponsors Project Structure/Type Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region Government ofMauritania the start involvedprivatearegovernmentfromsector and both structure where PPP BOTor to their dependence onimported hydrocarbons. and will contribute the towards countries reducing production costs, which are to currently Organisation) very high due energy Development surplus Morocco.Mauritania’swith Aligned River energydiversification mix program, the project export (Senegal to OMVS country neighbouring the enabling network, interconnected transmission the in and industrial energy of supply the increase domestic will it Significantly, growing demand. Mauritania’s meeting towards contribute Will 100 MW falls withinthe framework ofMauritania’s energy mixdiversification program. projectcountries the Morocco.toaddition, neighbouring and energysurplus In the export to country the enabling backbone, high-voltage the to energy its feed Will Senegalesethe border, through Tasiastthe areamining capitalthe and Nouakchott. to Nouadhibou capital economic the connects that backbone transmission voltage high north-south the to energy supply will It Sahel. the in project wind major first northern part of the coastal region of Mauritania. Set to createthe a demonstration effect as thein city second-largest the Nouadhibou, located in of capacity north km 100 MW installed 80 Boulenouar, of farm wind a large-scale of Construction Energy/Generation Boulenouar, Mauritania Mauritania Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Potential Market Project Energy Source Project Stage Countries/Region

Secure financing for theproject. Completion of feasibility studies, plant configuration, and design study. Securing financing US$ 200million US$ 200million and preliminary configuration design study by plant theendof2014. optimal an determine and studies available the review to appointed and been has study consultant A evaluation potential. energy an wind of with analysis together 2001, in Boulenouar and Nouadhibou of Wind speeds were monitored and measured over a period of one year in the region Government ofMauritania region, the in trading energy towards thereby leading to socio-economic development. contribute and for supply- Mauritania capacity constrained (mining) industrial and domestic needed much provide Will CEN-SAD, AMU Increased cross-border energy trading intheregion Mauritania, Morocco, Senegal andother neighbouring countries Wind Feasibility studies currently underway Mauritania Western Sahara Western Sahara Senegal Senegal Mauritania Mauritania Mali Mali 25 NEPAD Africa Power Vision Concept Note & Implementation Plan 26 NEPAD Africa Power Vision Concept Note & Implementation Plan 4 3 2 1 Solar –Desertec Sahara SolarProject December 2007, available at (http://www.theguardian.com/environment/2007/dec/02/renewableenergy.solarpower) com/n2/technology/solar-energy-desertec-Project-electric-18824.html) and “How Africa’s desert sun can bring Europe power”, by Robin McKie, The Observer(London), Sourced from “Tunisia: Nation andDesertec SignMOU”, November 2010, available at (http://allafrica.com/stories/201011081266.html) Sourced from “European SolarPower from African Deserts?”, by JamesKanter, The New York Times, June 2009, available at (http://green.blogs.nytimes.com) Sourced from “World’s Most Daring Solar Energy Project Coming to Fruition”, by Ilya Rzhevskiy, The Epoch Times, June 2009, available at (http://www.theepochtimes. Sourced from “Our GlobalMission”, Desertec Foundation, December2010, available www.desertec.orgat Potential Market Project Energy Source Project Stage Project Sponsors Project Structure/Type Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region p f ihvlae iet urn (VC tasiso cables. transmission (HVDC) current direct high-voltage made of primarily up network, electricity a Euro-Mediterranean developing are In they parks. wind addition, and plants power solar as such sources, renewable using Europe and East The Desertec organisations promote the generation of electricity in North Africa, the Middle Northern African host countries aswell assouthern Europe. Solar andwindpower farms throughout thenorthern Saharan desert. Many ofthelonger-term projects plannedfor the future are still conceptual. fewa with projects.discussions governmentsin Desertecis over potential projects. state utility company pre-feasibility the STEG, in is stage wind and solar on focusing Tunisian the of subsidiary a Renouvelables, Énergies STEG with project Tunisian A governments over the coming decades. Government of Morocco (current) with a view to incorporating many more Saharan TBD it amajoroff-taker ofpower produced. generation for the northern African region, the large demand ofenergy Europe could makedevelop to aim will project the year.While per hours sunshine 3,000 over Aims to utilise the vast untapped solar potential of the Sahara Desert, which receives by 2050. output of GW 100 overproduce to aims project The Sahararegion. the throughout sites project many over staged and decades over developed be would project The Energy/Generation and Transmission North-Western Sahara Algeria, Niger, Libya, Tunisia, Morocco, Egypt, Chad|NorthernAfrica transmitted to European andAfrican countries by asupergridofHVDC cables. Africa like the Sahara Desert and all the subdivisions. the all and Desert Sahara the like Africa photovoltaic systems, and wind systems,parks would power be spread over solar the wide concentrated desert regions the in proposal, North Desertec moist in the relatively Under areas the Desert. Coastal as surroundingAtlantic well as the woodlands, and in steppes itself, south and Desert north Sahara accessible more the of outside located be would 2 The generated electricity would be would electricity generated The 1 ot f h pwr plants power the of Most 3 4 6 5 panels-green-electricity) (http://www.theguardian.com/environment/2011/dec/11/sahara-solar-at available Guardian, The 2012, December Hickman, Leo world?”,by the power sun desert business/energy/morocco-is-key-testing-ground-for-desertec-solar-farm-Project) Sourced from “Sahara wind and sun to power EU homes”, by Philip Ebels, February 2012, available at (http://euobserver.com/wind-energy/115033)availableat 2012, February thehomes”, Ebels, “Could EU powerPhilip and toby sun and wind “Saharafrom Sourced at (http://www.thenational.ae/ available National, The 2011, June Yee, April by Project”, solar-farm Desertec for ground testing key is “Morocco from Sourced Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Countries/Region

into the Moroccan and Spanish grids between 2014 and 2016, depending on the selected technologyon andmarket conditions. depending 2016, and 2014 between grids Spanish and Moroccan the fed into be could project this from power available first The MW). (100 photovoltaics MW, which will be a combination of concentrated solar power plants (400 MW) and • • for bankability. proved difficult to maintain as the proposed immense scale of the project is an issue private hasinvestment vast. Even is required support financial and political – Scale TBD solar power/ the Moroccan projects are TBD. of planned other the for Costs costs billion. 1.7 US$ total approximately are plant the photovoltaic estimate, current the on Based (MASEN) for Energy Agency Solar Moroccan the with MOU an signed consortium Desertec the 2011, In Governments ofhost countries the region. of inhabitants on impact negative a without farms solar large up set to possible it extremelysparselypopulated,vastmakingalso and is desert Europe.The southern in plants of kinds same the than economical more are regions desert the in plants transmission 10-15% the losses outweighsbetween the desert regions East and Europe. the This Middle means that solar thermal the in power and radiation Africa solar North of high deserts extremely the that concluded have studies Desertec TBD integrated of these willhave positive impacts. regional and large is export infrastructuresupporttransmission and in the as well as plants wind and solar regional import power continental for even opportunity and countries The manyborders. cross will lines Transmission Vision. Solar and African Mediterranean north regions. entire As such, power the trade incorporate will form will an integralproject part of the the Sahara of scale and nature The Algeria, Niger, Libya, Tunisia, Morocco, Egypt, Chad|NorthernAfrica •

Plan, Conclude MOUswithhos Comple structure andsecure financing Morocco Morocco te pre-feasibility studies Algeria Algeria 5 to develop a reference project with a total capacity of 500 of capacity total a with projectreference a develop to t countries Tunisia Tunisia 6 Niger Niger Libya Libya Chad Chad Egypt Egypt 27 NEPAD Africa Power Vision Concept Note & Implementation Plan 28 NEPAD Africa Power Vision Concept Note & Implementation Plan 7 Geothermal –Baringo-Silali GeothermalFieldProject Communication andMarketing, at Power Africa-AUC Geothermal Roadshow, September-October 2014 Sourced from Presentation “GDC’s Geothermal Development Strategy for Kenya: Progress and Opportunities”, by Ruth Musembi, GDC, Head of Corporate GDC, Musembi, byRuth andOpportunities”, Progress for Kenya: Strategy Development Geothermal “GDC’s Presentation from Sourced Project Structure/Type Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region A PPP, IPPenvisaged. once theinterconnections are completed. Burundi and Sudan South to spin-off possible with Rwanda and Uganda,Kenya, of fastgrowingthe economies support to low-cost,electricity base-loadSupply clean, Potentially 3,000 MW, 200MW to be developed by December 2016. of the regional priorities. projects with regional impact - the Baringo-Silali development was identified as one infrastructurekey develop to 2014 February in agreement an signed Rwanda and Uganda, Kenya, addition, MW.In 1,600 approximately for account will geothermal electricity an aggressive has Kenya capacity enhancement program to add 5,000+ field. MW by the end of 2016, geothermalout of which the developing in agency lead the be to mandated was (GDC) Company Development Geothermal Kenya’s • • • plan isto develop 2,000 Blockinfour MWwithinthis phases: current The 3,000 MW. about be to potential Block’s the estimate studies surface Detailed prospects. Silali and Paka, Chepchuk, Korosi, comprises Arus, which Baringo, Bogoria, Block, the Baringo-Silali the in energy geothermal of Development Energy/Generation with Ethiopia) Kenyan part of the East African Rift (extending from Baringo to Silali up to the border Kenya, Uganda, Rwanda |East Africa •

Phase IV Phase III-400MWb Phase II-400MWb Phase I-800MWb -400 MWby 2023 y 2017 y 2019 y 2021 7 nrsrcue xlrto diln. ore fo Peetto “eteml eeomn i Kna Sau, lne Atvte ad eurd Support” byDr.Peter Required and Activities Omenda, GDC, at Planned GeothermalDonors Coordination Meeting, Reykjavik, Iceland, May 2014 Status, Kenya: in Development “Geothermal Presentation from Sourced drilling. exploration infrastructure 10 9 8 Op.cit., Note 7 Op.cit., Note 7 KfW has funded approximately US$ 100 million for steam field development. The Geothermal Risk Mitigation Fund has funded approximately US$ 6 million for 6million US$ approximately funded has Fund Mitigation Risk Geothermal The development. field steam for million 100 US$ approximately funded has KfW Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Potential Market Project Energy Source Project Stage Project Sponsors Countries/Region

iaie P srcue icuig P priiain a ncsay and secure necessary) (as participation IPP outstanding including financing structure, PPP Finalise Environmental andsocialapprovals/licenses. financing. Securing US$ 1.9billion US$ 2billionfor thefirst 400MW to jointly develop thesteam field. Community engagement framework established. GDC advertised for equity investors GDC commercial, andsocialtransformation inthe region. The project presents opportunities for providing low-cost, clean power for industrial, COMESA, EAC, EAPP as region, the in projects infrastructure key envisaged by the agreement other entered into between Kenya, Uganda, andRwanda. of development the to lead likely will generation The capacity place. interconnections in are once Burundi, and BeyondtoKenya,supply SudanUganda,toSouth Rwanda, also and supply possible Kenya, Uganda, Rwanda, East Africa region Geothermal, East African Rift environmental(e.g. license, landapproval). Approvals, permits, andlicenses currently being obtained Governments ofKenya, Uganda andRwanda Kenya, Uganda, Rwanda |East Africa 10 9 Uganda Uganda Tanzania Tanzania 8 Ethiopia Ethiopia Kenya Kenya

29 NEPAD Africa Power Vision Concept Note & Implementation Plan 30 NEPAD Africa Power Vision Concept Note & Implementation Plan Hydro –Batoka Gorge Hydropower Project Regional Context Potential Market Project Energy Source Project Stage Project Sponsors Project Structure/Type Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region Enable better coordination among the existing and future dams on the Zambezi dams River,future inorder to ensure theavailability and ofappropriate water levels. the existing among coordination better Enable be significantly improved through thisgreen hydropower project SAPP energy generation mix, which currently comprises mostly fossil fuel plants, will Allow for export ofpower to the region Zimbabwe andZambia, withpotential export opportunities tothe region Zambezi River Construction planned to commence in2015. interested by response for on aBOT basis. 2013 February in companies/consortia with (ZRA) experience in developing large-scale hydropower Authority) projects River (the Authority Zambezi Implementing the by for called were (EOI) Interest of Expressions updated in2009. in 2013. Feasibility studies and the economic impact assessment were reviewed and reviewfor due were 1993 in conducted environmentalstudies Technical,and legal Governments ofZimbabwe andZambia sector are involved from the start -SPV private and government both where structure PPP or BOT type: contract Potential • • • • 1,600 MW are alsoincludedinthe project design. between Zimbabwe and Zambia. Transmission equally lines, shared access power roads the and other with facilities units MW 200 x 8 of installation the with together constructedbe will gravitydam m electricity.181 MW,of A export1,600 enable to of capacityinstalled an with Basin, River Zambezi the in hydropowerbased A plant Energy/Generation Zambezi River Basin, between Victoria Falls andtheKariba Dam Zimbabwe, Zambia |SouthernAfrica region •

Job Allo En R Utilisa during operation phase(split equally between both countries) development reducingwhile reliance electricity imports, on hence improving energy security eduction ofpower shortages andloadshedding able both Zambia and Zimbabwe to increase their electricity generation capacity, w for export of power to the region and associated regional infrastructure regional associated and region the to power of export for w creation: 6,000 permanent jobs per annum during construction and 1,200 and construction during annum per jobs permanent 6,000 creation: tion of renewable energy and concomitant reduced reliance on fossil fuels 11 Sourced from “Batoka Gorge Hydropower Project”, Project Number: E.11.1.2, Iranian Embassy based inAddisAbaba, available at www.en.addisababa.mfa.ir Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Countries/Region

esblt Suy 19, pae 20) n Eooi Ipc Assmn (1993, Assessment updated in 2009)need to Impact beupdated. Economic and 2009) updated (1993, Study Feasibility ZRA shouldbe mandated to fulfillthis role. SPV,whethercreatea or will they whether on decide stakeholderstoProject need to reach needs preparation bankability inorder to secure project finance. project PPP. However, a on based is finance Project Securing financing. hydro to related issues schemes continue to present major obstacles environmental to the development of these projects. The approvals. social and Environmental US$ 6billion US$ 6billion duration of6 years. Planned commencement year for construction is 2015 with an expected construction Securing offinance for implementation. Reviewing engineering feasibility, environmental, and social impact assessment studies. ZRA Governments ofZimbabwe andZambia pursues itsgoal ofincreasing copper production. project will facilitate the opening of new, and expansion of existing mines as Zambia also benefit activities related to tourism, irrigation and fisheries. of the development electrification, potential spin-offs. Will all are amenities residential infrastructure areas, social and Rural currency. foreign of inflows boost will region to the delivery. exports Power activities. economic service downstream other stimulate Will sanitation and and water development improved industrial for in increased Opportunities performance. result and and investment shedding additional load reduce spur and Zimbabwe and Zambia both in availability power improve Will countries). both between equally (split phase operational the during Potential createto 6,000permanent jobs during annum per construction and 1,200 SADC, COMESA, ECCAS/CEEAC Zimbabwe, Zambia |SouthernAfrica region Zambia Zambia Zimbabwe Zimbabwe 11 Capacity from the 31 NEPAD Africa Power Vision Concept Note & Implementation Plan 32 NEPAD Africa Power Vision Concept Note & Implementation Plan 12 Hydro –Inga IIIBasse Chute (BC) Hydropower Project Sourced from “The Inga Sourced 3Hydropower from by “The International Project” Rivers, available www.internationalrivers.orgat Project Energy Source Project Stage Project Sponsors Project Structure/Type Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region Congo andBundiRivers but are beingaugmented by supplemental studies. The project is under technical preparation. Feasibility studies have been undertaken, Government ofDRC DBSA have allshown interest infinancingtheproject. AfDB,WorldDevelopmentFrenchAgency, Bank, the and EuropeanInvestment(EIB) The Bank tests. market on based adjusted be may privately structuring be PPP to The financed. expected is project the of remainder the while be financed, will River publicly Bundi the on dam the and canal The lines. transmission and station operatecompetitive develop, and construct a will intake, the process, power canal, through selected concessionaire, private a that intended is PPP.It a as Developed • • 4,800 MW bankability oftheproject andestablish itsfinancialviability. the increase to designed is arrangementelectricity. This of MW 2,500 purchase to in companies mining to sold AfricacommitmentfromSouth be DRC’s Katangaa includes projectalso Province.The will power of MW 1,300 region. Kinshasa the in d’Electricite (SNEL), which would in turn on-sell to households and small businesses 1,000 MW of power generated by Inga III will be sold to DRC’s utility Societe Nationale hydropower projects in Africa demanding particular attention from the Worldthe Bank. of one as Caucus African the by selected been has project The phases. 2 have would itself which III, Inga with beginning phases 7 in developed be will and MW Atlantic the 40,000 generation of intohavea intendedtocapacity is Grandscheme Inga The Ocean. Congo the of mouth the of upstream km 60 and Kinshasa, firstfrom km the 225 located is project, hydropower Inga scheme Grand hydropower the III of construction Inga the in The itself.phase River Congo the on dam a of the into River allow high-voltageimpoundment of the diverted water. Congo The project will not require construction the andassociated of Valleyto Bundi the wateracross dam a as well the as built be Valleywill of Bundi neighbouring plant part MW of hydropower intake An lines. a 4,800 transmission of Construction Energy/Generation Inga Falls onthe Congo River, Bas-Congo Province, DRC DRC| Central andSouthernAfrica • • • •

Cos Job cr Stimula Export ofpo R Utilisa eduction ofpower shortages andloadshedding t-effective power source eation tion of renewable energy te thedevelopment ofindustrial sectors, mining e.g. wer to theregion 12 13 Sourced from “DRC’s Controversial Inga 3Hydropower Project receives IDA technical assistance by grant” Michael Harris, available atwww.hydroworld.com Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Potential Market Countries/Region

Establish implementing agent (ADEPI) Secure financing (concession contract, EPCcontract, PPAs, insurance, O&Magreement, etc.) agreements project key and financing and studies feasibility supplemental Finalise hydro schemes continue to present major obstacles of to the development of issues these projects.environmental the Also, vast. is required support financial and political – Scale US$ 7-8billion US$ 12-14billion DRC’s institutional arrangements progressing well (Inga Law to be promulgated in June 2015). It isforecasted that power willbe generated by 2020. complete to selected Three offtake investor agreements willbe required. an and out tendered be development andbringthe project into theconstruction phase. then will project The Establishment ofthe implementing agent (ADEPI) to beaddressed. and maintenance (O&M)agreement. operation insurance, PPAs, contract, (EPC) construction procurement engineering contract, concession e.g. agreements project key and financing the of Finalisation Finalisation ofthesupplemental feasibility studies. Inga development. the monitor and manage to d’Inga(ADEPI) Promotion la Développementet le pour Government of DRC, and the proposed ring-fenced implementing agent, the Agence will receive tax revenue from theSPV established. DRC will receive operating assets at the conclusion of the concession contract. DRC reliable, supported and economic, consequently create and sustain large-scale, long-term employment. of supply stable, a sector, mining guarantee the be the in will particular in growth,revenuestream.secureIndustrial will Africa of South have with result PPA will long-term The a project energy. renewable the as from growth power purchase economic that enhanced countries other the and DRC ECCAS historical andfuture economic growth anddemand. lastcontributethethree will in decadesand significantly towards the meetingboth first Inga the the Fallshydropower be on project would III Ingasub-Saharanregion. 7 the Grand Inga project, it potentially (envisioned has vast socio-economic benefits for the Project entire Inga Grand broader the phases in total), which has the of potential capacity of 40,000 MW. already Due to the scale one of phase is be DRC will project since The Africa), South (e.g. SAPP the of interconnected withtheSAPP grid. countries the and DRC DRC| Central andSouthernAfrica Congo Congo D.R.C. D.R.C. Angola Angola 33 NEPAD Africa Power Vision Concept Note & Implementation Plan 34 NEPAD Africa Power Vision Concept Note & Implementation Plan 14 Hydro –Sambangalou Hydropower Project Sourced from “Sambangalou Dam”, Project Number: E.07.1,Iranian Embassy basedinAddisAbaba, available at www.en.addisababa.mfa.ir Potential Market Project Energy Source Project Stage Project Sponsors Project Structure/Type Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region Gambia, Guinea, Senegal, GuineaBissauandthe region Gambia River All policies, studies andthelegal framework have been completed resettlement a and assessments action planhave been completed impact environmental and social detailed Two Feasibility study was completed in 2011 Detailed designstudy was completed in2008 Governments ofGambia, Guinea, GuineaandSenegal. Bissau for theoperation andmaintenance ofthe damand hydro system. contract with private operator and other legal documents. Possible option for a PPP Developed as a public sector project. Project sponsors will decide on PPA, operating • • Installed capacity of128MW, withameanenergy production of402 GWh per year. in Guinea. Organisation Development(OMVG) Project, whichentailed aninterconnecting power gridwiththe Basin Kaleta Dam River Gambia larger a of part formed Originally kilometre square 185 a as reservoir (4turbines of32MWeach). well as capacity, MW 128 a with plant hydropower A Energy/Generation be will located inSenegaldam withpartofthereservoir inGuinea. River.The Gambia the of mouth the from upstream km 930 Located Gambia, GuineaConakry, GuineaBissauandSenegal |West Africa region •

Pr Con Supply ofsus omotion ofpeace and stability inthe region. trol ofthe water level inthe river basin. tainable electricity to the participating countries. 14 Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Countries/Region

Construction is expected to begin in2014andbe completed by 2018. Updated inter-governmental agreement to bedrafted. Dedicated co-ordination unit to be formed to manage theimplementation process. require significant community planning and restructuring. Social impacts – the scale of the planned reservoir spans multiple countries and will US$ 324-524million US$ 1.108million once thefinancinghasbeen mobilised. studies and advisortransaction new by updated be policies, will completed;framework been havelegal All documents, established. were plan action resettlement and environmentplan an assessments,environmental impact and social detailed 2 Detailed design study completed andthe in 2008 and cost updated in April 2013. Following (WAPP) Pool Power West African OMVG. Other is the the ECOWAS. include three countries the partners of implementing on behalf agency coordinating The projectthis willalsoincrease theregion’s energy security. through available made electricity additional The integration. regional enable and trade power regional increased to lead will electricity low-cost of availability The low-cost,renewableenergy.enjoy will Senegal and Bissau Guinea Guinea, Gambia, ECOWAS andCEN-SAD Will contribute to a multi-sector (water and power) approach to regional integration and willalsoincrease theregion’strade energy security power regional increased to lead will electricity low-cost of availability The Gambia, GuineaConakry, GuineaBissauandSenegal |West Africa region Guinea Bissau Guinea Bissau Gambia Gambia Senegal Senegal Guinea Guinea Mali Mali 35 NEPAD Africa Power Vision Concept Note & Implementation Plan 36 NEPAD Africa Power Vision Concept Note & Implementation Plan 15 Gas –West African Power Pool: DomunliRegional Power Project The CTB isthepartlycompleted The CTB andpartlyoperational 330kVtransmission linefrom Cote d’Ivoire to Nigeria (passing through Ghana, Togo andBenin) Project Description Sector/Subsector Project Location Countries/Region Potential Market Project Energy Source Project Stage Project Sponsors Project Structure/Type Project Objectives Project Size/Capacity grid during the electricity crisis in early 2011 and utilise the Coastal Transmission Coastal Backbone the (CTB), utilise and 2011 early in crisis electricity interconnectionthe regional during the grid to supply power emergency an as serve to was selectedproject The losses. transmission incremental reduce to order in built is plant processinglocatedGas westernselectedis Ghana the where the in Ghana region of MW.150 ratedabout a of with output steamturbine sitea Theother the and each, MW 150 about of ratedoutput a with turbines gas 2 comprise to set is one plants: in Domunli in the western region of Ghana. Based on a set of combined cycle power (Ghana’s(VRA) national utility for generation sponsored supply) and project located Authority River Ghana/Volta of Government a is This fields. gas Jubilee the of use Construction of a 450 MW combined cycle thermal power plant, which seeks to make Energy/Generation Located in the Western Region of Ghana, near the Ghana Gas processing plant facility Ghana, Benin, Togo, Nigeria |West Africa Ghana, Benin, Togo, Nigeria, Mali, Burkina Faso, Cote d’Ivoire and West Africa region Gas from Jubilee fields inGhana project asajoint venture partnership. Site preparatory work is on-going. The VRA is currently seeking funds to develop the Government ofGhana an IPP. PPP.awardedBOTconcessiontoa a as Developedstructuredas be will project The the highcost ofpower generation kV by usingassociated gas. 161 and kV 330 WAPP and demand increasing address will the project The interconnectedlines. transmission through – Nigeria – Ghana, and Faso countries Burkina ECOWAS Benin, five Togo, to electricity of MW 450 sustainable of Supply 450 MW 15 allowing for increased trade, regional integration, and grid stability. 16 Sourced from West African Power Pool website, www.ecowapp.org Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Countries/Region

Finalise project implementation Secure outstanding funding Filling fundinggap aswell assecuringreliable gas supply. US$ 300million(to be updated by AFC) US$ 600million(to be updated by AFC) upon itscommissioning by 2017-2018. plant the to supply gasreliable ensure tounderway also are Studies project. the in Burkina (SONABEL, Burkina) have already confirmed their participation as off-takers du d’Electricité Nationale Société and Mali), (EDM-SA, Mali–SA du Energie Ghana), (ECG, Ghana of Company Electricity The 2013. February in adopted and developed to title to secure the land from the underway Government of Ghana. The project implementation are schedule was efforts and identified been has site hectare 40 A The VRAiscurrently seeking fundingfor the project. Government ofGhana/VRA Job creation. Reduced gas flaring. Increased capacity to meet growing demandintheregion. WAPP andECOWAS for allowing thereby grid, regional the into regional integration, increased trade inthe region and grid connectstability. to intended is project The Ghana, Benin, Togo, Nigeria |West Africa Cote d’Ivoire Cote d’Ivoire Burkino Faso Burkino Faso 16

Ghana Ghana Togo Togo 37 NEPAD Africa Power Vision Concept Note & Implementation Plan 38 NEPAD Africa Power Vision Concept Note & Implementation Plan Gas –West African Power Pool: MariaGleta Regional Power Project Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region utilise amore cost-effective fuel (gas)thancrude oil. kV 161 and kV and 330 demand increasing address will WAPPproject The interconnectedlines. transmission the through – Nigeria – Ghana, and Faso, countries Burkina ECOWAS five Benin, Togo, to electricity of MW 450 sustainable of Supply 450 MW (CEB) The mainoff-takers for the power plant willbeGhanaandBenin. Benin agreement, supply Du agreements. fuel financing and project PPA, relevant other Electrique and agreement, implementation agreement, shareholders Communaute a and sign will (Ghana) (Benin-Togo), VRA comprises which Company) Gleta (Maria company project The development. preparation and its for responsible is AFC the and project the of coordination the for responsible WAPPis Alternative 2-61kVtransmission line to the plant substation (2.5 km) Alternative 1-330kVtransmission line to MomeHagou substation (100km) kV 330 and transmission line to km) theMomeHagou substation (100km) (2.5 substation plant the to line transmission kV 161 - case Base There are three options for integrating theplant CTB tothe - trade, for increased regional integration, allowing andgrid stability. (CTB), backbone transmission coastal the utilise to meant was project The Ghana. and Nigeria from gas of consumer important an be supply.Will gas proximateto as well as Benin in centre load major the to close be will Gleta plant the Maria since losses, planned transmission incremental reduce the to order of in substation west km 2.5 450 about to located output is total selected the site bringing The MW,MW. 150 about of steam output a rated other a the with and turbine each, MW 150 about of output rated a with turbines gas two comprise to set is one plant: power cycle combined MW 450 a of Construction Energy/Generation/Transmission Near the border between Porto Novo andCotonou cities, Benin Ghana, Benin, Togo, Nigeria |West Africa Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Potential Market Project Energy Source Project Stage Project Sponsors Project Structure/Type Countries/Region

Subject to the approval of private partner selection by the WAPP Board, AFC and Board, schedule implementation WAPP milestones. on project the by negotiation selection commence will partner WAPP private and of approval the to Subject Filling fundinggap aswell assecuringreliable gas supply. US$ 500million(to be updated by AFC) US$ 781million(to be updated by AFC) AFC to commence pre-feasibility studies Government ofBenin trade inthe region. Gasflaringwillbe reduced. Increased capacity to meet growing demand in the region, leading also to increased WAPP andECOWAS increased trade, regional integration andgrid stability for allowing region, WestAfrica the in supply energy the augment will project The Ghana, Benin, Togo, Nigeria andtheWest Africa region Gas from Nigeria, West African GasPipeline (WAGP) andGhana(Jubilee fields) AFC to commence pre-feasibility studies Government ofBenin an IPP awardedto concessionBOT a as structuredPPP, be a will as projectDeveloped the Ghana, Benin, Togo, Nigeria |West Africa Togo Togo Benin Benin Nigeria Niger Nigeria Niger 39 NEPAD Africa Power Vision Concept Note & Implementation Plan 40 NEPAD Africa Power Vision Concept Note & Implementation Plan engineeringnews.co.za 20 19 18 17 Gas –Ghana1000LNGto Power Project Op.cit., Note 18 atwww. available News Online, Op.cit., Note 18 Engineering May 2014, Odendaal, by Natasha agreement”, inks consortium as way under gets 1000 “Ghana from Sourced Sourced from “Ghana 1000MWgas to power Project”, ESI Africa Online,May 2014, available at www.esi-africa.com Project Stage Project Sponsors Project Structure/Type Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region Steering Committee (delivery unit) to accelerate the project’s The development. of2014. end partial the risk guarantee (PRG). Ghana’s was Ministry of Energy and completion Petroleum has formed a for deadline GovernmentGhana’sof tois initiateFinance Ministry of process a target a for Bank World the and process in secure a to currently are negotiations PPA The negotiations project. the of for Aboadze stages near site VRA-owned final in are developers and sponsors Project of the purchase power fromfor theproject. off-takers power other potentially, and ECG critically with agreement of addition the fast-track long-term tofacilitate a also will Government The grid. national the to power needed partners project the allow to framework The Government of financial Ghana’s role directis to create an no enabling environment and requiring regulatory Project, IPP sector contribution from the Government ofGhana. private purely a as Developed Ghana whencompared withplants currently runningoff expensive light in crudeoil. power of cost the lower help as well as generation, base-load reliable add Will 1,300 MW power.generate to turbines (GE) Electric General to on-shore naturalgas transport will infrastructure associated while regas, and store receive, to unit (FSRU) regasification and storage floating dedicated a LNG, of importation the Ghana’sto combineelectricity will of It excessMW power grid. national 1,300in of Construction of an integrated liquefied natural gas (LNG) to power plant, generating Energy/Generation Western Ghana Ghana |West Africa output. project isexpected to beimplemented before 2019, doubling the first-phase power initially producing 360 MW in simple-cycle mode. The second and final phase of the 2017, early by power delivering begin to expected is project the of phase first The MW 550 respectively and andwillbefuelled by along-term supply contract for LNG. MW 750 of phases two in project development power greenfield a 18 20 17 The project is project The 19 general-news/32843-general-electric-to-add-1000mw-to-national-grid.html) 21 Sourced from “General Electric to add 1000 MW to national grid”, by Sebastian Syme, October 2014, Graphic Online, available at (http://graphic.com.gh/news/ at available Online, Graphic 2014, October Syme, Sebastian grid”, by national to MW 1000 add to Electric “General from Sourced Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Potential Market Project Energy Source Countries/Region

Finalise PRG and MIGA insurance. Secure and finalise the appropriate gas supply contracts gas appropriate the finalise and Secure insurance. MIGA and PRG Finalise Finalise PPA Securing reliable gas supply. 100% ofequity committed -debt arranging mandate to be awarded US$ 1.916billionfor Phase 1power +LNG discussions in implementation inMay 2016. is GE ECG. 1 stage for course of on is project MW. risks The 250 of batch first default the supply to ECG and with liquidity as well as gas natural of supply the surrounding issues resolving towards working is The Ghana of Government ongoing. is process insurance MIGA and PRG ongoing. are negotiations PPA Government ofGhana be understated. cannot economy the on project the of impact the so oil, crude light than less 35% day to buy light crude oil for power generation. Current of plant LNG prices are balance approximatelya million 1 US$ than more currentlyspending is gasshortages,to Ghana Due same parts. the leverage could units generation power the significant yield as to savings expected is site single a on MW 1,000 over of generation The WAPP andECOWAS assist in stabilising theregion’s power grid. of South and imports powerSSA outside on Ghana’sdependence reduce greatly in will such as and Africa, project generation power single-largest the be will This for thesale ofsurpluspower to other buyers intheWest Africa region. agreements potential facilitate will Government Ghanaian the addition, In Ghana. LNG Ghana |West Africa Cote d’Ivoire Cote d’Ivoire Burkino Faso Burkino Faso 21 Ghana Ghana Togo Togo 41 NEPAD Africa Power Vision Concept Note & Implementation Plan 42 NEPAD Africa Power Vision Concept Note & Implementation Plan its failure”, by LoicConan 23 22 Gas Pipeline–Nigeria-Algeria GasPipelineProject Sourced from Presentation“The TSGP Project”, by DrGhajiBello, ActingDirector-General oftheICRC, inHamburg andHanover, April2013 Sourced from Utah Environmental Law, Volume 31, No.1 of 2011, Trans-Saharan“The Gas Pipeline: An Overview of the threats to its success and the means to prevent Project Objectives Project Size/Capacity Potential Market Project Energy Source Project Stage Project Sponsors Project Structure/Type Project Description Sector/Subsector Project Location Countries/Region • • • a to reach is expected capacity of 1,059 billion cubic feet TSGP or 30 billion cubic meters of natural gas per the year. functioning, once and km 4,400 Approximately TSGP willreach acapacity of30billioncubicmeters ofnatural gas per year. the option, inch 48 the diameter. With in inches 56 or 48 pipeline, the of size the for options two are There liquefaction. of process the wastage, during 15-18%, gas estimated at account into taking option LNG the to compared when competitive cost- to considered is running pipeline the pipelines km, 4,400 oil of length and the Given gas coast. Algerian natural the for hub a R’Mel, Hassi reaching before Saharadesertthe and region Sahel the of vastcrossspans basin, Delta Niger the in • • Nigeria, Niger, Algeria, West andNorth Africa regions andEurope/European Union. Nigerian gas reserves the of Pipeline to kick-start andfast tracksegment theinitiative. Trans-Nigerian the with progressingby Niger NNPC Algeria. ratified and and Republic Inter-governmental executed governments 25%. sponsor and between 15.5 (IGA) between agreement ranging return of rate with internal 2006 September the in sponsors by accepted and concluded studies Feasibility Governments ofNigeria, Niger andAlgeria PPP model Niger,connecting Algeria km Spain. 220 Algeria,to and in km 2,310 in km 853 Nigeria, in km 1,037 over with km, 4,400 roughly at estimated is length the existing The with (TSGP). Pipeline Trans-SaharaGas the the as to referred across Also to connect sea. Mediterranean pipelines Galsi designed and Medgaz, pipeline Maghreb-Europe, gas Trans-Mediterranean, a natural of Construction Energy/Transmission ofGas R’Mel (Algeria) 4,400 km pipeline from Qua Ibom Terminal (Calabar, Nigeria), through Niger to Hassi Nigeria, Niger and Algeria |West andNorthAfrica regions

gas supply Assis Boos the sub-region Boos Cr Div eation of wealth by openingupeconomic growth opportunitiesinthesub-region ersification of export route formarketing Nigerian natural gas ting domestic gassupplywithinthe region ting theGDPandimproving theliving standards ofthe peoplewithin ting inthefight against desertification through sustainable and reliable 23 22 Would initiate

Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Countries/Region

private investors and financial institutions for project funding. Planned project funding. construction in2015 for aduration of4 for years. project institutions financial SONATRACH and alternative investors Engagement of private an with NASS ratification. line internal and in secure IGA arrangement participating country 3 the Update petroleum. Reach an agreement regarding Algeria request for participation in Nigeria of 2006 up stream Revalidation of view. feasibility study concluded. Ratification point of the IGA by Algeria needs to be executed. construction a areasof from critical TSGP Identify the with synergy study. optimisation Trans-Nigerian the (2) and supply options gas (1) reassessing 2014) quarter (1st revalidated study feasibility Project other securityissues isachallenge. and theft from security Line vast. is required support financial and political – Scale US$ 10billion-13.7 US$ 13.7billion(56inchoption) (2006) option)US$ 10billion(48inch (2006) TSGP through theTrans-Nigerian GasPipeline (TNGP). the the for take-off the track Kano, to delivery fast and sources supply and the kick-start up Linking toinitiative. Pipeline the of segment Trans-Nigerian the with sponsor betweengovernments executedIGA and 25%. ratified byand Niger Republic15.5 and Algeria.between NNPCranging progressing return with of rate 2006 internal September the in sponsors by accepted and concluded studies Feasibility (Niger’s SONIDEP company), gas and Petroleum oil parastatal), Nigeria’s ICRC, aswell asthe ECOWAS. largest (Algeria’s SONATRACH also NNPC, will TSGP The high. remain to likely contribute to eliminating natural is gas flaringin Nigeria. Europe from supply for demand alternative need the the and sources, gas fields European of depletion the to Due AMU, ECOWAS andCEN-SAD the widespread useofwood for energy region, and assist in the fight against deforestation sub- and the desertification in by preventing opportunities growth economic up opening by alleviation poverty and NEPAD, of objectives with promote growthline in sub-region the of economies the integrate tohelp intended Also desertification. and prices energy high by affected currently are which Mali Southern and Faso, Burkina as Niger, Nigeria, well toNorthern as Algeria, gas Southern of supplying advantage critical the has TSGP The Nigeria, Niger and Algeria |West andNorthAfrica regions Algeria Algeria Niger Niger Nigeria Nigeria 43 NEPAD Africa Power Vision Concept Note & Implementation Plan 44 NEPAD Africa Power Vision Concept Note & Implementation Plan Notable examples ofsuchPPPstructures can amongothers, befound intheenergy Indian sector 24 Transmission –Central African Interconnection Transmission LineProject Traditionally, transmission line projects are public sector projects, however the recent trend is for the private sector to also play a role through various PPP structures. Project Energy Source Project Stage Project Sponsors Project Structure/Type Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region including hydropower. Transmission line, with capacity to transport power from various generation sources, At conceptual andpre-feasibility stage Regional power poolsandmember utilities. Developed asaPPP. regional power poolsandvarious utilities. plant and other proposed generation projects in the region, to the above-mentioned hydropowerIII Ingaproposed the fromlow-cost power of supply the for allow Will 3,800 kmtransmission linewith4,000 MWcapacity the of implementation the in involved project. be will SAPP and WAPP African the Central Pool, the Power (ECCAS), States African Central of Community Economic The 2040 km transmission linkbetween theDRC andZambia. by GW 12-17 1,800 existing and reinforce the to option an also is There Chad. 2020 and Guinea Equatorial by to line the capacity extend to option an MW includes project The 4,000 segment). the on (depending a have to expected is It Cameroon andNigeria. Inga stations and feed it to the SAPP and the WAPP via the interconnection between systemThe transferwill futurethe powergenerated to be GrandIngaand the byIII 330 kVInterconnection between Libreville (Gabon)andDouala(Cameroon) 330 kVInterconnection between Inga (DRC) andLibreville (Gabon) 330 kVInterconnection between Inga (DRC) andLuanda(Angola) 330 kVInterconnection between Lagos (Nigeria) andDouala(Cameroon) Construction ofa3,800 kmtransmission line system made upof four segments: Energy/Transmission Transmission line spanningWest, Central andSouthernAfrica | West, Central, SouthernAfrica transmission line),Equatorial Guinea,Chad,(if theProject isextended) Nigeria, Cameroon, DRC, Angola, Gabon(for first four segments ofthe 24

Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Potential Market Countries/Region

the two projects since the transmission line will partly rely upon Inga for power for Inga upon generationrely anditstransmission to regional utilities. partly will line transmission the since projects of two schedule the implementation synchronised well a achieve to SPV project Inga the and line the of entity regional the between coordination close for need a is There should take the leadinestablishing the entity. DRC and Angola, Gabon, Cameroon, Nigeria, of Governments The established. be entity, responsibility.transmissiontoregional needs of Inga, separateA point from the for isalso being responsible entity development, construction and regional operation of the transmission single line to ensure a single a a PPP structure establish to important is finalised, It prepared.is being plan financing seven the of While period a years. over place take to scheduled is project the of Implementation development andthe project itself). (both for financing Securing vast. is required support financial and political – Scale US$ 5billion impact social and US$ 5billion environmental the with assessments (ESIA) to becompleted. together studies Pre-feasibility the transmission system isenvisioned. regional entity development,single responsible operationfor a and construction of establishmentof The Gabon. and Angola DRC,Cameroon, Nigeria, of Governments by the collection oftransmission charges from users. for paid be will post-construction/operational system thetransmission and construction The stages. during creation of job Stimulation generation. of expansion and regions the in trading electricity increased for allow will line interconnection The ECCAS and reliability ofsupplyloadacross theregions. and new generation sources, improved balance of generation, and improved quality The project will allow for expanded regional power trade and optimisation of existing West, Central andSouthern Africa region | West, Central, SouthernAfrica transmission line), Equatorial Guinea,Chad,(if theProject isextended) Nigeria, Cameroon, DRC, Angola, Gabon(for first four segments ofthe Equatorial Guinea Equatorial Guinea Cameroon Cameroon Nigeria Nigeria Gabon Gabon Chad Chad Congo Congo Central African Republic Central African Republic Namibia Namibia Angola Angola South Africa South Africa

45 NEPAD Africa Power Vision Concept Note & Implementation Plan 46 NEPAD Africa Power Vision Concept Note & Implementation Plan found intheIndianenergy sector be others among can structures PPP such of examplesNotable structures. PPP various through role a play also to sectorprivate the for is trendrecent the however sector possibly building the transmission line, but with ownership remaining with the Government/s. Traditionally, transmission line projects are public sector projects, engineeringnews.co.za 29 28 27 26 25 Transmission-- NorthSouthTransmission LineProject Subject to country and regional resources and structuring. Since the project is still in conceptual stage, it could possibly be developed as a PPP, with the private the PPP, with a as developed be possibly could it stage, conceptual in still is project the Since structuring. and resources regional and country to Subject www. The Ethiopia-South Sudansegment ofthe Project appears to be advanced at initsconceptual development, hence thedetail provided available 2014, March News, Engineering Barradas, Sheila by Africa”, Southern and East Corridor, Transmission Power “North-South from Sourced SAPP member countries are: Angola, Botswana, DRC, Lesotho, Malawi, Mozambique, Namibia, SouthAfrica, Swaziland, Tanzania, Zambia, andZimbabwe EAPP member countries are: Burundi,DRC, Egypt, Ethiopia, Kenya, Libya, Rwanda, Sudan, Tanzania, andUganda Project Structure/Type Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region 500 kV HVDC line, thereby increasing access and stimulating socio-economic Developed asaPPP -BOT orEPC. stimulating and access increasing thereby development. line, HVDC kV 500 Ethiopia-Kenya the to addition in countries African East for corridor transmission alternate an Provides countries/regions. power high-demand to totransport sources generation from system transmission cross-border ahigh-voltage of Creation 8,000 km, 3,000 -17,000MWcapacity transmission line system. African East for corridor transmission alternate countries inaddition to the Ethiopia-Kenya an 500kVHVDCline. create to is others) (among Mozambique, Zambia, and Zimbabwe to South Africa, connecting the Eastern the connecting Africa, South Power(EAPP)PoolAfrica to Zimbabwe and Zambia, Mozambique, from Egypt through Sudan, South Sudan, Ethiopia, Kenya, Uganda, Tanzania, Malawi, system line transmission capacity MW 17,000 - 3,000 km, 8,000 an of Construction Energy/Transmission Regional Interconnector-East andSouthern Africa Mozambique, Zambia, Zimbabwe, SouthAfrica, |East andSouthernAfrica Egypt, Sudan,SouthEthiopia, Kenya, Uganda, Tanzania, Malawi, rm ees t Jb truh ei substation. Tepi through Juba to Dedessa from constructed be will line transmission AC kV 500 A Basin. Omo be the to on constructed planned plants hydro additional are which plants, V Gibe and IV Gibe from substation called a Tepi will be constructed.beyond, The same substation willcountries evacuate power and Sudan South to and Ethiopia of areas south-western the substation.kV 500 havea will Dedessa power plan, deliver to this To In Ethiopia. of fromMW 6,000 planned Ethiopianthe Grand Renaissance plant to centresload the such One countries. participating and segment is the construction of pools a 500 kV alternating current power(AC) line to evacuate the two the spanning segments 25 and the SAPP.the and 29 26 27 26 Will comprise multiple interconnectedmultiple comprise Will 28 A clear objective of the project the of objective clear A Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Regional Context Potential Market Project Energy Source Project Stage Countries/Region

Uganda and commitment in implementing the project will play a big role in the role big a project going forward. play will project the implementing in commitment and Uganda The successful negotiations between the Governments of Ethiopia, South Sudan and co-operation between the countries and regions (SAPP and EAPP). political extensive Requires vast. is required support financial and political – Scale TBD TBD Pre-feasibility studies to beundertaken Governments ofparticipating countries region’s young population andwillhelpcreate stable power sector growth. the to opportunity economic bring will project The decade. next the in fold many customers commercial and industrial from multiply to expected is demand where Intended to provide cheap and reliable power to East and Southern African countries EAPP andSAPP Increased cross-border energy trading withinandbetween EAPP andSAPP. EAPP and SAPP including hydropower andgeothermal. Transmission line, with capacity to transport power from various generation sources Requires feasibility studies. Mozambique, Zambia, Zimbabwe, SouthAfrica, |East andSouthern Africa Egypt, Sudan, South Sudan,Ethiopia, Kenya, Uganda, Tanzania, Malawi, Burundi Burundi Rwanda Rwanda Egypt Egypt South Sudan South Sudan Sudan Sudan D.R.C. D.R.C. South Africa South Africa Zambia Zambia Zimbabwe Zimbabwe Ethiopia Ethiopia Kenya Kenya Tanzania Tanzania Uganda Uganda Mozambique Mozambique Malawi Malawi 47 NEPAD Africa Power Vision Concept Note & Implementation Plan 48 NEPAD Africa Power Vision Concept Note & Implementation Plan Transmission –Zambia-Tanzania-Kenya Transmission LineProject Regional Context Potential Market Project Energy Source Project Stage Project Sponsors Project Structure/Type Project Objectives Project Size/Capacity Project Description Sector/Subsector Project Location Countries/Region explore the possibility of drawing power from Southern Africa, Zambia in particular. have had to resort to very expensive emergency power suppliers. Hence, the need to for power has increased substantially. Some of these countries (e.g. Kenya, Uganda) Kenya,Tanzania,Rwanda,demand (e.g. regionsthe etc.), AfricanUganda Southern andEast the in economies the of growth phenomenal to Due Africa. East in power for demand increasing the by prompted been has project the of development The Zambia, Tanzania, Kenya, andtheregion Transmission line, transmitting energy from various hydro/coal sources Securing financing Governments ofZambia, Tanzania andKenya for concessionary funding. candidate suitable a is project low, the financing of costaverage the the keep to by need Driven countries. three the covering system unitary a as sector public the by developed being PPP,now a is as it planned originally was project the Although • • • Bi-directional 2,200+ km, 400MWkVpower transmission line. well astransmit power to Isinya. as centre load Arusha the to power Singida deliver to from required be line will Arusha kV to onwards 400 another side, Kenya’s On centres. load northern the to deliveredstrongforbe providetopathpowerfromthe MbeyaIringa will to line kV 400 On Kenya. in a Tanzania’s Isinya side, to Zambia in Kabwe from sections in line be constructed as a bi-directional 400 MW double circuit 400 kV power transmission Tanzania, covering a distance of 2,200 km. The transmission line (interconnector) will to grid Kenya, Zambian the via connect will that transmission line a of Construction Energy/Transmission Arusha (allinTanzania) and Singida Iringa, (Tanzania)(Kenya)via IsinyaMbeya throughto (Zambia) Kabwe Zambia, Tanzania andKenya |East andSouthernAfrica regions • •

Assis R Impr Pr Pr member ofthe SAPP. Tanzania (Sumbawanga). electricity export potential. of aPan African power market. einforce the national grid in Tanzania and make operating/trading make in an and Tanzania Tanzania grid national einforcethe omote and stimulate the development of new power generation projects and generation power projects new of development the stimulate and omote creation the facilitate and continent the interconnection across power omote v te ult o pwr o oten aba va aaa ad Western and Kasama) (via Zambia Northern to power of quality the ove t Kenya diversifying in fuelsources for generation. 30 Information provided inthis Annex hasbeen sourced primarilyfrom theDakar FinancingSummitProject Briefs, June2014 Way Forward Key Challenges Financing Gap Total Estimated Project Cost Project Status Implementing Authorities & Expected Benefits Economic Sustainability REC Countries/Region

funding) andcommercial (market priced, term long funding). commercial to subordinated funding, long-term costs, (medium semi-commercial tenor), cost/long low and (grants funding concessionary of form the in principally and come to bilateral expected is funding multilateral, The considered. be to of is sources funding combination commercial A guarantees. sovereign counterpart and necessary funding the provide to agreed have governments sponsoring The Secure financing for theproject. Securing financing US$ 1.1billion US$ 1.1billion Commencement ofthePMUrecruitment. Funding for establishment ofthePMUfrom European Unionobtained. Heads ofAgreements and, mobilisation of resources by Zambia and the Tanzania. of Signing Lusaka. in PMU the of installation aspects, technical of Finalisation the of review project (routing, configuration, technical capacity). and PPAs on discussions preliminary of Commencement transmission company, Transco, whichwillbe aspecialpurposevehicle (SPV). of the formation the until project the manage to governments participating the by Private Power Investment (OPPI). Project Management Unit (PMU) to be established Government of Zambia, Tanzania and Kenya. Zambia through its Office for Promoting operating/trading an makemember ofSAPP. Tanzania and in Tanzania grid national the Reinforce (via Zambia Northern to power of Kasama) andWestern Tanzania (Sumbawanga). quality the Improve etc. geothermal, hydro, and projects generation electricity exportnew power potential,of e.g. enable Kenya to development diversify fuel the sources stimulate for generation: and Promote of aPan African power market. the creation facilitating and continent interconnection power the Promoting across EAC, COMESA andSADC Zambia, Tanzania andKenya |East andSouthernAfrica regions Zambia Zambia Tanzania Tanzania Kenya Kenya 30 49 NEPAD Africa Power Vision Concept Note & Implementation Plan 50 NEPAD Africa Power Vision Concept Note & Implementation Plan NOTES FROM VISION TO ACTION