WEST AFRICAN POWER POOL : PRIORITY PROJECTS AND IMPLEMENTATION STRATEGY Outline of Presentation • Electricity Supply Situation in West Africa • Vision and Mission of WAPP • Master Plan 2004 • Objectives of the Updated Master Plan • Implementation Strategy (Model, Finance) • Status of Priority Projects How do we reduced the Deficit in Electricity Supply in West Africa? Inadequate installed -Development of capacity in members WW geneation and states of the ECOWAS transmission infrastructure AA -Public Private Mismatch between Partnership generation and demand for electricity (Leading to PP -Establishment of a load shedding) Regional Electricity Market -Institutional PP Framework and Highly unstable price of Regional Electricity fuel and inadequate Regulator electricity tariff 3 VISION & MISSION • Vision: Integrate the national power system operation into a unified regional electricity market with the view to providing, in the medium and long term, to the citizenry of ECOWAS Member States with stable and reliable electricity supply at affordabel cost. • Mission: Promote and develop energy generation and transmission infrastructures, as well as, ensure the coordination of energy exchange within ECOWAS Member States. UPDATING ECOWAS GENERATION AND TRANSMISSION MASTER PLAN REVISED MASTER PLAN 2004 – The implementation of the Revised Master Plan was affected by global financial meltdown and the global energy crisis. – In some cases, national projects were undertaken instead of regional projects by the various countries in order to meet the energy needs of the individual countries. – A revison of the the Regional ECOWAS Master Plan became imperative in order to create a coherent framework for a regional electricity market. UPDATE OF THE REVISED ECOWAS MASTER PLAN Objectives of the Study: • To elaborate an optimal development plan for a regional generation and transmission of electrical energy. • To propose a list of regional priority project that will assure energy security and the achieve the of interconnection of all the West African countries by 2018. • To elaborate a strategy for implementing the regional priority projects. UPDATE OF THE ECOWAS REVISED MASTER PLAN Methodology of the study: ¾ Data collection and analysis of the generation and electricity demand of the various countries ¾ Economic Study: optimal development plan ¾ Technical Study: Technical Study of the operation and stability of the network ¾ Environmental Analysis ¾ Financial analysis of the electricity companies in West Africa ¾ Compiliation of a list of regional priority projects ¾ Analysis of the implementation strategy. 27/08/11 9 27/08/11 10 UPDATE OF THE ECOWAS REVISED MASTER PLAN : ENERGY MIX WITH 10% OF RENEWABLE ENERGY BY 2020 Mix Energétique en termes d'énergie produite 100% 90% 80% EOLIEN 70% SOLAIRE 60% BIOMASSE AUTRES 50% DIESEL OIL 40% HFO 30% CHARBON 20% GAZ NATUREL HYDRO 10% 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 11 MASTER PLAN IMPLEMENTATION STRATEGY IMPLEMENTATION STRATEGY Inter zonal North Core transmission Hub MALI SENEGAL NIGER GAMBIE GUINEE 150MW BISSAU BURKINA FASO GUINEE NIGERIA OMVG-OMVS BENIN SIERRA CÔTE TOGO LEONE D’IVOIRE GHANA 450MW LIBERIA CLSG 450MW Coastal backbone 13 IMPLEMENTATIONIMPLEMENTATION STRATEGYSTRATEGY • Implementation Models • Traditional Model : ¾ Project Implementation Unit to coordinate activities in the various countries • Regional Model : ¾ Establishment of a single Project Implementation Unit ¾ Establishment of Specific Purpose Company (SPC) 9 Supplementary Act A/SA.3/01/08 adopted by the Heads of State and Government of ECOWAS in January 2008 in Ouagadougou IMPLEMENTATIONIMPLEMENTATION STRATEGYSTRATEGY • Sources of Financing ¾Traditional lending institutions ¾Public Private Partnership ¾Establishment of an ECOWAS Regional Fund dedicated to electricity projects ¾Power Utilities ACTUALISATION DU PLAN DIRECTEUR REVISE DE LA CEDEAO Conclusions: Regional Priority Projects 2011 – 2025: ¾10 000 MW to be installed of which 7 000 MW will be hydro sources ¾16 000 km of transmission lines TOTAL INVESTMENT COST IS US$ 24 BILLION WITH GENERATION COST OF US$ 18 BILLION AND TRANSMISSION OF US$6BN 16 STATUS OF DELIVERY Coastal Transmission Backbone Subprogram (Cote d’Ivoire, Ghana, Benin/Togo, Nigeria). 330 kV Riviera (Cote d’Ivoire) – Prestea (Ghana) 330 kV Aboadze (Ghana) – Volta (Ghana) 330 kV Volta (Ghana) – Lome “C” (Togo) – Sakete (Benin) 330 kV PHCN/TCN (Nigeria) – CEB (Togo/Benin) 330 kV Riviera (Cote d’Ivoire) –Prestea (Ghana) Expected Commissioning 2015 STATUS: 9 At level of Pre‐investment; 9 Funding secured from EU‐Africa Infrastructure Trust Fund through EIB; 9Consultants already recruited to prepare pre‐investment studies; 9Line Route and ESIA Study kicked off on April 5, 2011 and Scoping Report currently being reviewed by GRIDCo and SOGEPE NEXT STEPS: 19 WAPP to ensure completion of pre‐investment studies by July 2012 330 kV ABOADZE (Ghana) - VOLTA (Ghana) Operational since September 2010 STATUS: NEXT STEPS: 9 Completed; WAPP to monitor and evaluate progress 9 Fully funded by World Bank (WB) under of any remaining issues and performance of line. WAPP APL1, European Investment Bank line. (EIB), Kuwaiti Fund and GRIDCo; 9 The line was energized on 5 September 2010 and is operational; 20 330 kV VOLTA (Ghana) –Lome “C”(Togo) –SAKETE (Benin) Expected Commissioning 2013 STATUS: NEXT STEPS: 9At level of Implementation; GRIDCo and CEB to complete compensation of 9Financing completely secured from AfDB, KfW, affected population; and WB; CEB to conclude Contractor recruitment process; 9Works on 140km 330 kV line and expansion of WAPP to continue monitoring and coordinating substations have commenced in Ghana; project implementation 9Pre‐qualificaton of Bidders for the works is in progress in Togo/Benin 9CEB has also established an Escrow account in 21 Lome for compensation of Project‐Affected‐Persons in ToTogogo and BeninBenin;; 330 kV PHCN/TCN (Nigeria) –CEB (Benin) Interconnection Reinforcement Project Commissioning 2017 STATUS: 9 At level of preparation; 9 Terms of Reference for pre‐investment studies examined and adopted by PHCN/TCN and CEB in September 2011. NEXT STEPS: WAPP Secretariat to finalise Request For Funding and dispatch; 22 Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire). • 225 kV Bobo Dioulasso (Burkina Faso) – Ouagadougou (Burkina Faso); • 225 kV Bolgatanga (Ghana) – Ouagadougou (Burkina Faso); • 225 kV Cote d’Ivoire – Mali; • 330 kV Aboadze (Ghana) – Prestea (Ghana) – Kumasi (Ghana) – Bolgatanga (Ghana) + Tumu (Ghana) – Han (Ghana) – Wa (Ghana); • Han (Ghana) – Bobo Dioulasso (Burkina Faso) – Sikasso (Mali) – Bamako (Mali); • 225 kV Fomi (Guinea) – Bamako (Mali) – Nzerekore (Guinea) – Linsan (Guinea) • 147 MW WAPP Adjarala Hydro Power Facility Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire). 225 kV BOBO DIOULASSO (Burkina Faso) – OUAGADOUGOU (Burkina Faso) Operational since December 2009 MALI STATUS: • Transmission line operational since December 2009; • Fully funded by WB, AFD, EIB, Danida and Danish Mixed Credit, Government of Burkina Faso, Nordic Fund; BURKINA FASO NEXT STEPS: GUINEA • WAPP to continue monitoring performance of transmission line CÔTE GHANA D’IVOIRE Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire). 225 kV Bolgatanga Ghana) – Ouagadougou (Burkina Faso) - Expected Commissioning 2013 STATUS: • At level of processing for financing; • Feasibility and ESIA completed and MALI Environmental Permits secured; • Commercial framework agreed to by VRA, GRIDCo and SONABEL; • Estimated Project Cost ≈ US$111 million • WB Board approved participation in project BURKINA financing in June 2011; FASO • AFD and EIB have confirmed their intentions to finance and shall present to GUINEA their respective Boards in December 2011 NEXT STEPS: CÔTE GHANA • Launch process to recruit Supervision D’IVOIRE Engineer; • WAPP Secretariat to coordinate and monitor project implementation. Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire). 225 kV Cote d’Ivoire – Mali - Expected Commissioning 2012 STATUS: • At level of implementation; • Being funded by BOAD and through bi- MALI lateral cooperation with the Government of India; • Works in Mali are almost completed and approximately 70% advanced in Cote d’Ivoire BURKINA FASO NEXT STEPS: • WAPP Secretariat to monitor project GUINEA implementation. CÔTE GHANA D’IVOIRE Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire). 330 kV ABOADZE – PRESTEA – KUMASI – BOLGATANGA , Tumu – Han – Wa : Expected Commissioning 2015 STATUS: •At level of pre-investment MALI •Pre-investment studies fully funded by WB under APL1 Phase 2 •Earmarked for funding under WB APL3 and AFD •Draft Feasibility Study Report being reviewed; •After study of alternative routes, project is now BURKINA from Aboadze to Bolgatanga; FASO •Environmental impact assessment for the project are being concluded. GUINEA NEXT STEPS: •WAPP to monitor implementation of studies by GRIDCo. CÔTE GHANA D’IVOIRE Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d’Ivoire via Mali, CLSG via Cote d’Ivoire). Han (Ghana) – Bobo Dioulasso (Burkina Faso) –Sikasso (Mali)– Bamako (Mali) Expected Commissioning 2015 STATUS: • At