WEST AFRICAN POWER POOL PRESENTA

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					WEST AFRICAN POWER POOL
     PRESENTATION



 Africa Investment Project Summit
     Civic Center, Lagos, Nigeria
         8th November 2007
  ECONOMIC COMMUNTY OF
WEST AFRICAN STATES (ECOWAS)
Benin,
Burkina Faso,
Cape Verde, Ghana
Mali,
The Gambia, Guinea
Niger,
Nigeria, Senegal
Togo,
Cote d’Ivoire,
Liberia, Sierra Leone,
Guinea Bissau
STATUS OF ELETRICITY SUPPLY IN ECOWAS
        Electricity Supply in West Africa

   14 mainland countries
   Population 240 million
   Electricity supply:
      20% of population has access to grid-supplied
       electricity
      Total 42 TWh (2005) – about the same as the
       state of Iowa (pop. 3 million)
      175 kWh per capita – 1.4% of US average

      Forecast growth 7-8% per year
“……..the
developmental impact
of poor electricity
coverage is huge.
Thus, the economic
and humanitarian case
for lighting up Africa
scarcely needs to be
spelt out. After water,
food and shelter, there
is little more essential
than Electricity”
STRATEGY FOR MEETING CHALLENGES
                     ECOWAS VISION
 develop interconnection             harmonize legislations
  and power exchange                     and standards
 between Member States                of the power sector
                                           operations



                      promote and protect
                      private investments
                       in energy projects


    use gas in Nigeria                  create an open and
  to feed Power stations                   competitive
in neighbouring countries               regional electricity
          (WAGP)                              market
               Rationale of the WAPP

                                    DEVELOPMENT
Abundant Energy                    OF A REGIONAL
Resources within                   POWER MARKET
 ECOWAS region                         (Optimization
                                        of resources
                                            use)
                        WAPP

Inadequacy power
 supply - demand
                                    DEVELOPMENT
                                      OF POWER
                                       SUPPLY
                                   INFRASTRUCTURE
Unequal geographic                   •Hydro & Thermal
  distribution of                  •Interconnection lines
    Resources
                ECOWAS Energy Protocol

   Supporting ECOWAS regional goals
       Increased access to energy
       Stable and reliable electricity supply – affordable and
        sustainable
       Achieving the Millennium Development Goals
       Peace and security
   Balanced development of the diverse primary energy
    resources of the ECOWAS member states for their
    mutual benefit
   Long-term cooperation in the energy sector
   Uninterrupted energy transit, and
   Increased cross-border electricity trade.
Energy Infrastructure Developments in
             West Africa
                   Interconnected Countries




                           MALI
                                                         NIGER
         SENEGAL
GAMBIA

  GUINEA                      BURKINA
  BISSAU      GUINEA           FASO
                                        BENIN                 NIGERIA
         SIERRA                     TOGO
         LEONE           CÔTE
              LIBERIA   D’IVOIRE GHANA

                                   West Africa Gas Pipeline
                                       (WAGP) Project
          Infrastructure Development
         (1999 WAPP MASTER PLAN)



In 1999, ECOWAS Council of Ministers, by
Regulation C/Reg.7/12/99, adopted a Master
Plan to develop electricity generation and
transmission infrastructure, and to
interconnect the national electrical power
systems
                 Infrastructure Development
          (2004 WAPP REVISED MASTER PLAN)


In 2004, the 1999 ECOWAS Energy Master Plan was revised
in order to:

   Define the long-term vision and implementation strategy for the
    regional transmission system

   Establish the capital costs of the regional transmission
    investment program over the next 17 years (2020 horizon),
    more specifically over the first 4 years (2004-2007) and

   Establish the stability, reliability and operationality of the
    regional systems
                             Investment Requirements


                               Overall Generation and Transmission
                              Overall Generation and Transmission Investment Requirements
                                                          Requirements
                                        InvestmentUSD millions)
                                                    (2004

                     6 000
                               9 billion USD by 2011
                     5 000     (2004 prices)
 2004 USD millions




                     4 000

                     3 000

                     2 000

                     1 000

                        0
                                  2004-7           2008-11           2012-15            2016-20
                                    generation   WAPP projects   transmission reinforcement

N:\COST ESTIMATES FOR IMPLEMENTATION
WAPP Implementation strategy is reflected in
approved 2006-2009 Business Plan and based on
realising:

      Coastal Transmission Backbone Subprogram (Cote
       d’Ivoire, Ghana, Benin/Togo, Nigeria).
      Inter-zonal Transmission Hub Sub-program (Burkina
       Faso, OMVS via Mali, Cote d’Ivoire via Mali, LSG via
       Cote d’Ivoire).
      North-core Transmission Sub-program (Nigeria, Niger,
       Burkina Faso, Benin).
      OMVG/OMVS Power System Development Subprogram
       (The Gambia, Guinea, Guinea Bissau, Mali, Senegal)
      Liberia-Sierra Leone-Guinea Power System Re-
       development Subprogram (Cote d’Ivoire, Liberia, Sierra
       Leone, Guinea).
    Coastal Trans Backbone Sub-program

    Inter-Zonal Trans Sub-program

    North-core Trans Sub-program

    OMVG/OMVS Development Sub-program

    LSG System Redevelopment Sub-program




                                    MALI


SENEGAL                                                                NIGER

GAMBIA
  GUINEA
  BISSAU
                                                BURKINA FASO
       GUINEA                                                          NIGERIA
                                                               BENIN
            SIERRA                           CÔTE             TOGO
            LEONE                          D’IVOIRE
                                                      GHANA

                         LIBERIA


            Implementation Road Map
  Regional energy development – generation
  projects



                                       MALI

                                                    NIGER
          SENEGAL
GAMBIA
                                     BURKINA
     GUINEA                            FASO
                      GUINEA
     BISSAU                                 BENIN
                                                    NIGERIA
                                           TOGO
            SIERRA               CÔTE
            LEONE              D’IVOIRE GHANA
                LIBERIA

Under construction
or financing closed
Under development
  Regional energy developments –
  WAPP integration of electricity markets



                           MALI
   SENEGAL                                            NIGER


GAMBIA
                         2010   BURKINA
             2011                 FASO
   GUINEA     GUINEA
   BISSAU                              BENIN
                                                      NIGERIA
                                   TOGO
         SIERRA            CÔTE
         LEONE           D’IVOIRE GHANA        2007
                   2011+
             LIBERIA

                                          West Africa Gas Pipeline
                                             (WAGP) Project
                    Coastal Transmission Backbone
                             GHANA                       TOGO                  BENIN           NIGERIA


                      Kumasi
                     Kumasi                                    Momé
                                                                Momé               Sakété
                                                                                   Sakété      2007
                                                               Hagou
                                                                Hague
                                                Akosombo
                                                Akosombo
                    Obuasi      Obuasi                                            Cotonou
                                                                                  Cotonou
           2008-9
                                                        2009     Lomé

 CÔTE                                2008       Volta
                                                Volta
           Prestea
           Prestea
D’IVOIRE                                    Accra                       Existing 161 kV
           225 kV                                                       Committed 330
                                                                        Existing 161 kVkV line
                                                                        Committed under line
                                                                        330 kV line 161 kV construction
                               Aboadze
                               Aboadze                                  Proposed 330 kV development
                                                                        330 kV line underoperated at 161 kV


      Strengthens High Voltage Transmission System
      Coastal corridor Côte d’Ivoire-Ghana-Togo-Benin-Nigeria
      Better use of hydro thermal
      Enable energy trading
                  Project Status




   At level of Processing For Financing
   Financing secured from WB, AfDB, and BOAD.
   Financing of about US$24 million Gap.
   Study implemented by WAPP to determine an optimal
    Implementation Strategy for the project that would
    include Public Private Partnership.
BOBO DIOULASSO (Burkina Faso) – OUAGADOUGOU (Burkina Faso)




                               BURKINA FASO


                            BURKINA FASO Ouagadougou

                   225 kV
                               2008
              Bobo Dioulasso




          Expected Commissioning, 2009
                   Project Status




   At level of implementation
   Fully funded by WB, AFD, EIB, FMO, Danida and
    Danish Mixed Credit, Government of Burkina Faso,
    Nordic Fund.
   Project was launched March 23, 2007
Han – Bobo – Sikasso – Wulessebougou - Bamako
                          Project Status



   Pre-investment studies being implemented by WAPP
    Secretariat Activity:
      Funding for pre-investment studies secured fully from EIB.
      Consultant has been recruited to implement pre-investment

       studies.
      Inception Reports, Draft ESIA Scoping Report, and Draft

       Feasibility Data Report have been submitted.
   Next Steps:
      Complete implementation of studies by June 2008.
                           OMVG Project

                           OMVS                         MAURITANIA



    Dakar                SENEGAL

                 Kaolack

                                          Tambacounda                        MALI
     Brikama            THE GAMBIA
                        Soma
                        Tanaf                                                            Bamako
                                                        Sambangalou
                                GUINEA-
                                BISSAU                   Mali
               Bissau
                                                 Labe
                                                                 GUINEA     Proposed Hydro
                                                        Pita                Substation
                                Boke
                                            Kaléta                        Transmission Line
                                                                                Existing 225 kV
                                                        Linsan                  Proposed 225 kV



Expected Commissioning: 2011-2012
               Salient Characteristics:
   Hydropower Dam at Sambangalou
           Installed Capacity                128   MW
           Annual Energy Produced            402   GWh
           Development Cost         ≈          292   million Euros
   Hydropower Dam at Kaleta
           Installed Capacity                240 MW
           Annual Energy Produced            946 GWh
           Development Cost          ≈        178 million Euros
   Interconnection Line (Including Substations):
           Length                          1,677 km
           No. of Substations                  15
           Capacity                          800 MW
           Development Cost≈         387 million Euros
                    Project Status



   Pre-investment studies completed and adopted.
   Estimated Development Cost ≈ 854 million
    Euros
        US$400 million equivalent pledged.
   China Development Bank and Sinohydro have
    indicated firm interest to participate in the
    funding and development of the project.
   Close funding gap and complete project funding
    agreements
   Commissioning expected in 2011 - 2012
                 OMVS Felou Hydro Project
                                        OMVS                  MAURITANIA



              Dakar                  SENEGAL
                                                                       Kayes
                              Kaolack                                      Felou
                                                                               Gouina
                                                                                           MALI
                                                     Tambacounda
               Brikama
                          THE GAMBIA
                                                                                                       Bamako
                                                               Sambangalou
                                        GUINEA-
                                        BISSAU
                            Bissau

                                                                       GUINEA             Proposed Hydro
                                                                                          Substation
                                                     Kaléta                             Transmission Line
“OMVS Power System”                                           Linsan
                                                                                              Existing 225 kV
                                                                                              Proposed 225 kV
- 2nd Generation Projects                  Canakry

                         Fully funded by WB and EIB; part of APL1 funding.
                     Project Status



   At level of Implementation
   Fully funded by WB and EIB
   Projected commissioning date is 2011
Bolgatanga (Ghana) – Ouagadougou (Burkina Faso)




         Expected Commissioning, 2010
                  Project Status




   Update of pre-investment studies being
    implemented by WAPP Secretariat
   Funding for the update of pre-investment studies
    secured fully from NEPAD-IPPF, USAID, and DBSA-
    AFD.
        Liberia – Sierra Leone – Guinea (LSG)
              Redevelopment Program:




   Cote d’Ivoire – Liberia – Sierra Leone – Guinea WAPP
    Interconnection:
   Master-plan Study for LSG System
   Reconstruction of Mt. Coffee / Development of St.
    Paul Hydro Plants:
   Bumbuna / Yiben Reservoir Expansion
Cote d’Ivoire – Liberia – Sierra Leone – Guinea Interconnection
               Linsan
                      Project Status


      At level of pre-investment.
      Terms of Reference documents for a Feasibility Study,

       Line Route Survey, and ESIA were developed and a
       Request For Funding dispatched to WAPP Donors.
      The European Trust Fund through the European

       Investment Bank have approved funding for the pre-
       investment studies.
•   Next Steps:
      Secure funding
Thank You for

Your Attention
       Contact


WEST AFRICAN POWER POOL
      WAPP Secretariat
        06 BP 2907
       Cotonou, Benin
  Tel. + 229 21 37 41 95
  Fax + 229 21 37 41 96
 E-mail info@ecowapp.org
COSTAL TRANSMISSION BACKBONE
           CTB Project Background

   Volta (Ghana)-Mome Hagou (Togo) – Sakete (Benin)
    transmission line is deemed critical to actualising the
    Coastal Transmission Backbone project required to
    expand and make the WAPP more robust for energy
    exchanges. It will interconnect Ghana, Togo, Benin
    and Nigeria (ikeja-west to sakete 330kv line)

   Transmission line length (340 km)

   Estimated project cost : USD 104 million
                    Coastal Transmission Backbone
                             GHANA                       TOGO                  BENIN           NIGERIA


                      Kumasi
                     Kumasi                                    Momé
                                                                Momé               Sakété
                                                                                   Sakété      2007
                                                               Hagou
                                                                Hague
                                                Akosombo
                                                Akosombo
                    Obuasi      Obuasi                                            Cotonou
                                                                                  Cotonou
           2008-9
                                                        2009     Lomé

 CÔTE                                2008       Volta
                                                Volta
           Prestea
           Prestea
D’IVOIRE                                    Accra                       Existing 161 kV
           225 kV                                                       Committed 330
                                                                        Existing 161 kVkV line
                                                                        Committed under line
                                                                        330 kV line 161 kV construction
                               Aboadze
                               Aboadze                                  Proposed 330 kV development
                                                                        330 kV line underoperated at 161 kV


      Strengthens High Voltage Transmission System
      Coastal corridor Côte d’Ivoire-Ghana-Togo-Benin-Nigeria
      Better use of hydro thermal
      Enable energy trading
                  Project Status




   At level of Processing For Financing
   Financing secured from WB, AfDB, and BOAD.
   Financing of about US$24 million Gap.
   Study implemented by WAPP to determine an optimal
    Implementation Strategy for the project that would
    include Public Private Partnership.
Project Implementation Strategy
          Proposed Project Structure
   An Special Purpose Company (SPC) is to be
    incorporated to mobilise finance, execute & manage
    the project.
   The main purpose of the SPC is to raise finance, build,
    operate & manage the transmission line linking Nigeria
    to Ghana through Benin and Togo
   To maximise private sector participation/investment
    and also minimise public sector bureaucracy
         Build Operate Transfer (BOT);

         Build Own Operate (BOO),

         Design Build Finance Operate (DBFO)
         SPC formation (Participants)

   Utilities (CEB, VRA, PHCN)
   WAPP
   Private Investors
   Consortium of Consultants
   Financial Institutions (Investment & Commercial
    Banks, Multilaterals)
   EPC & O/M contractors
                         SPC structure/operating mechanics
Stakeholder Governments
(Guarantees,Legal/Regulatory
Approvals, Permits, Incentives etc)        Equity + Debt Capital         Shareholder Agreements
                                           from Fin Institutions,        (VRA,CEB,PHCN+other investors
                                              Utilities & Other
                                                  Investors




       Wheeling Charges
                                           Special Purpose                               Wheeling Agreement
         From Utilities                    Company (SPC)                                    with Utilities




                  EPC contract and O&M
    Contract with International Power Company



                                             Debt Service payments
                                            & Dividends to debt/equity
                                                     holders
                                                                                          Contract/Agreement
                                                                                           Movement of money
                 Bridge Financing mechanics


                     phase 1                        phase 0


                                                              Coastal
Private Investors,                 International              Transmissionn
                         SPC
   Dev Fin Inst,                      Power                   Line Project (Volta-
                                  Company/Utility             Mome Hagou-
                                                              Sakete)



                          VRA/
                         CEB




                       ADB led

                     consortium                                Funding & Construction

                                                                 Movement of Funds
Thank You for

Your Attention
       Contact


WEST AFRICAN POWER POOL
      WAPP Secretariat
        06 BP 2907
       Cotonou, Benin
  Tel. + 229 21 37 41 95
  Fax + 229 21 37 41 96
 E-mail info@ecowapp.org

				
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