Aug 21, 2012
SA, DRC set to consider draft Grand Inga power treatyBack
DRC|Africa|Eskom|Flow|PROJECT|Projects|Africa|Europe|Angola|Democratic Republic Of Congo|DRC|Egypt|Mozambique|Namibia|Nigeria|South Africa|Zambia|Cross-border Energy Project|Energy|Flow|Power Generation|Power-generation|Dipuo Peters|Inga III|Jacob Zuma|Joseph Kabila|Power
© Reuse this
Speaking on Tuesday at an economic regulators conference in Ekurhuleni Department of Energy COO Thandeka Zungu revealed that the DRC government would also deliberate on the contents of the proposed treaty in the not-too-distant future.
The formal accord had been drafted by a technical committee, comprising senior officials from both countries, which was established following the signing, in November, of a Grand Inga memorandum of understanding (MoU) at a ceremony presided over by Presidents Jacob Zuma and Joseph Kabila.
Once ratified, it would create the framework for the implementation of the project and define project-execution milestones.
It was also viewed as a precursor to the initiation of negotiations on an implementation agreement for what would be the largest-ever cross-border energy project in the Southern African Development Community.
Zungu would not be drawn on the timeframe for the finalisation of the treaty, nor on when the engagements would begin on the implementation agreement. But she indicated that South Africa was keen for talks to begin before year-end.
Energy Minister Dipuo Peters indicated recently that she was considering the issuance of Ministerial determinations to open the way for further power generation projects in line with the Integrated Resource Plan for electricity.
The plan, which was unveiled in early 2011, envisaged the integration of 2 609 MW of imported hydroelectric power into South Africa’s power mix between 2021 and 2023. This initial capacity is expected to flow from countries such as Zambia and Mozambique. However, both Zuma and Peters have indicated that Grand Inga is receiving priority attention.
It is understood that Eskom and the DRC’s Société Nationale d'Électricité Société a Responsibilité Limitée, or SNEL, would also enter into an agreement which would facilitate the execution of the project.
Should it eventually proceed, Grand Inga could be developed, in phases, into a 40 000 MW of emission-free-power hub – almost equal to South Africa’s current installed base.
In fact, South Africa’s newly released National Development Plan 2030 argues that the project could even provide power, through interconnecting links, to southern Europe. To reach its potential, three major African interconnection projects would be required: the northern highway, between Inga and Egypt; the southern highway, between Inga and South Africa; and the western highway, between Inga and Nigeria.
But the project had already had a number of false starts.
Prior to the treaty process, the next significant phase was meant to have been developed by an entity known as Westcor, whose shareholders included DRC’s SNEL; ENE, of Angola; NamPower, of Namibia; the Botswana Power Corporation; and South Africa’s Eskom.
But progress on the proposed 3 500 MW to 5 000 MW ‘Inga III’ stalled, owing to DRC disquiet over the structural arrangements. It is understood that the MoU of last year was designed to reinitiate the Inga process under a regime that was more acceptable to the host country.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...