Issue 222 - 16 December 2011
UGANDA
Uganda in the dark after leak stalls Bujagali hydro project yet again
With power cuts causing riots in Kampala, and the start-up of a long-awaited hydro-electric power project delayed for the fourth time this year, Uganda is in for a difficult dry season, writes Adrian J Browne
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Emergency solutions remain default option for hard-pressed sub-Saharan African consumers
Industry optimists may argue that investment commitments are rising, along with the number of opportunities to buy into long-term generation, transmission and distribution schemes. But much of the running in supplying power to fast-growing sub-Saharan economies – and their electricity-poor populations – is still being made by providers of temporary solutions. Below, African Energy provides an indicative listing of recent emergency, standby and distributed projects in a variety of sub-Saharan economies
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BENIN
Project delays lead to demand crisis
Despite promises of new generation infrastructure, power cuts remain routine for distributor Société Béninoise d’Energie Electrique (SBEE), which struggles to meet demand. The state recently had to step in to pay CFAfr15bn ($30m) of the company’s debts, but the distributor still owes another CFAfr15bn to the joint Benin-Togo supplier Communauté Electrique du Benin (CEB).
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NIGERIA
Nerc issues 22 licences to local IPPs
The Nigerian Electricity Regulatory Commission (Nerc) has issued 20 operational licences to local independent power producers for both on and off-grid generation, as well as one distribution licence and a licence for the newly created Nigerian Bulk Electricity Trading Company (NBETC).
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GREAT LAKES
Bidders sought for Ruzizi hydro studies
The European Union has invited applications to prequalify for studies for the proposed 145MW Ruzizi I hydroelectric project’s grid connection, and rehabilitation studies for the 29.8MW Ruzizi 1 and 43.8MW Ruzizi II plants (AE 207/14).
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ALGERIA
Bouterfa travels to Brussels as Algeria mends fences with Desertec
Sonelgaz’s president tells African Energy that ‘our differences with Dii have been resolved’ as Algeria reassesses its attitude to European mega-schemes, writes Selwa Calderbank in Brussels.
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NORTH AFRICA
Medgrid-Dii agreement on grid interconnections
The success of the Desertec Industrial Initiative (Dii) and the viability of the Desertec vision, which critics still argue is fanciful, depends on resolving the transport problem as well as finding willing partners in North Africa.
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SOUTH AFRICA
South Africa lines up preferred bidders for solar and wind IPPs
The Department of Energy used the UN Climate Change Conference (COP17) in Durban to finally launch the much-vaunted renewables IPPs, announcing preferred bidders for the Renewable Energy Independent Power Producer Procurement Programme on 7 December (AE 220/1). Twenty-eight of the 53 bids received had been retained in phase one (totalling 1,416MW). Thus 2,209MW was still to be allocated to make up the 3,625MW tota
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COUNTRIES AND MARKETS
EGYPT: Vinci-led JV to build Assiut project
A consortium of France’s Vinci and the local Orascom Construction Industries (OCI) and Arab Contractors has been awarded a civil works contract worth €266m ($300m) by the Ministry of Water Resources and Irrigation’s Reservoirs and Grand Barrages Sector department to build the Assiut dam and associated 32MW hydropower plant.
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GHANA: African International Energy granted concessions
Johannesburg-based African International Energy says the Ministry of Energy has granted it two hydropower concessions on the Ankobra River in the Western Region.
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KENYA: AfDB loan for Thika IPP
The African Development Bank (AfDB) has approved a €28.1m ($37m) senior loan to support the 87MW Thika thermal power project.
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MOROCCO: EIB appraises transmission loan
The European Investment Bank (EIB) has begun the formal appraisal process for a loan to back up to 50% of the total €290m ($386m) ONE – Réseaux Électriques III project, which is being developed by state utility Office National de l’Electricité.
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MOZAMBIQUE: ABB substation order
ABB has won an order from JSPL Mozambique Minerais LDA, a subsidiary of Jindal Steel and Power, for a 220/33 kV turnkey substation to electrify an open-cast coal mine project at its mining concession near Chirodzi village in Tete Province.
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MOZAMBIQUE: Third hydro plant in Manica province
A new hydropower plant is planned in Manica province, governor Ana Comoane told Radio Moçambique in early December.
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NIGERIA: Tax breaks for equipment and machinery importers
President Goodluck Jonathan’s 13 December budget speech included incentives for developers, with the federal government proposing that power equipment and machinery should attract zero duty, effective from January, under the 2012 National Budget Appropriation Bill.
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COMPANIES AND PEOPLE
JOULE AFRICA: Sierra Leone player brings in big names
Bumbuna hydro developer Joule Africa has appointed three big names to its advisory board. Lord Triesman was UK parliamentary undersecretary in the Foreign and Commonwealth Office with responsibility for Africa during Tony Blair’s premiership, when British troops helped end Sierra Leone’s civil war.
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Issue 221 - 2 December 2011
DR CONGO/SOUTH AFRICA
Presidents sign Inga deal
South Africa and the Democratic Republic of Congo signed a memorandum of understanding (MoU) on the 40-50GW Grand Inga hydro project during a 12 November visit to Lubumbashi by President Jacob Zuma. An official statement said the MoU was signed “in the spirit of enhancing bilateral relations… with a view to contribute to alleviating energy deficit facing the two countries and the region”.
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ZIMBABWE
Zesa insists on open tender for Kariba
Zesa Holdings has decided not to pursue a memorandum of understanding signed between the Zimbabwe Treasury and China’s Sinohydro for the expansion of the Kariba South hydro project, opting instead to pursue a public tender process.
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MOROCCO
With Ouarzazate lending in place, momentum builds behind Moroccan solar breakthrough
Multilaterals lined up to voice support for Masen’s ground-breaking CSP scheme at Ouarzazate, ahead of the global climate conference in Durban. With other solar schemes also reporting progress, Morocco’s aspirations to become a leading renewables producer are moving ahead, writes Jon Marks
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COMPANIES AND PEOPLE
CIMENTS DU MAROC: Wind and solar projects
Using equipment and management from Spanish giant Gamesa, the local subsidiary of Italy’s Italcementi Group, Ciments du Maroc, has started generating from its latest wind farm, a 5MW facility built for its Indusaha arm outside El Ayoun in the disputed Western Sahara.
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ITALGEN: Ambitious Egyptian project
Development of Ciments du Maroc’s renewables projects involves Italcementi Group’s energy arm Italgen, which has promoted solar and wind projects in Bulgaria and has big plans in Egypt, where a 120MW wind farm in the Gulf of El Zeit is under development.
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HELIOS ENERGIE: ‘100MW of PV schemes in the pipeline’
Hélios Energie chief executive Karim Megherbi told a mid-November workshop in Brussels that the French solar company had lined up a pipeline of 100MW of photovoltaic (PV) projects in sub-Saharan Africa.
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COUNTRIES AND MARKETS
ETHIOPIA/KENYA: Interconnection may earn carbon credits
The Ethiopia-Kenya hydropower interconnection project may be the first to benefit from work conducted by the African Development Bank (AfDB), through the African Carbon Support Programme, to develop a new Clean Development Mechanism (CDM) methodology that would make interstate electricity connection eligible for CDM revenue.
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LIBERIA: Mount Coffee contracts awarded
The West African Power Pool secretariat has announced the award of two contracts for preparatory studies on the rehabilitation of the 64MW Mount Coffee hydro project.
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SENEGAL: New HFO plant
Lebanese power developer Matelec is close to finalising a contract for a new 70MW power plant.
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UGANDA: Ishasha mini hydro starts up
President Yoweri Museveni on 23 November formally inaugurated the 6.6MW Ishasha small hydro plant in Kanungu district, in south-west Uganda, near the border with Democratic Republic of Congo.
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Issue 220 - 18 November 2011
Southern African pool still operating below par
The SAPP is putting on a brave face about prospects for the region’s electricity supply industry and its own performance, looking to inflows of investment to install more generation capacity across southern Africa and for the pool’s trading mechanisms to gain momentum, write Kevin Godier and Jon Marks
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DR CONGO
Deep-rooted problems stall Snel’s recovery, jeopardising DRC projects and regional schemes
Weeks ahead of DRC’s presidential election, the Senate Special Commission of Inquiry’s damning report shows the appalling extent of mismanagement at Snel since the utility’s creation, writes François Misser
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CAMEROON
WBG commits to backing Kribi GTP project
The World Bank Group (WBG) on 11 November committed $168m in loans and grants for the estimated $350m Kribi Gas Power Project, which it said was “expected to supply reliable electricity to over 160,000 households”, as well as helping to maintain operations at the Alucam smelter at Edea.
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AfDB funding for Lom Pangar
In another co-financing operation to support Cameroon’s power sector, the African Development Bank has approved a $71.1m loan to finance the Lom Pangar hydroelectric project. .
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GABON
Coder issues HEP tenders
Renewable energy developer Compagnie de Développement des Energies Renouvelables (Coder) is seeking bids for the supply of generation equipment for the Chutes de l’Imperatrice and Chutes de Fe2 hydroelectric power projects.
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GHANA/BURKINA FASO
Interconnection tender
Ghana Grid Company (GridCo) and Société Nationale d’Electricité du Burkina (Sonabel) are seeking expressions of interest from consultants for the provision of project management, engineering and construction supervision services for the 225kV Bolgatanga-Ouagadougou interconnection project.
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BURUNDI/RWANDA/TANZANIA
Owner’s engineer sought for Rusumo Falls
The Nile Basin Initiative (NBI) Nile Equatorial Lakes Subsidiary Action Programme (Nelsap) has invited expressions of interest (EoIs) by 23 November from consultants to serve as owner’s engineer for the 90MW Rusumo Falls hydropower project on the Kagera River.
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MOROCCO
ONE seeks EPC contractor for new coal-fired unit
State utility Office National de l’Electricité (ONE) has invited expressions of interest by 1 February 2012 from engineering, procurement and construction contractors to build a 350MW coal-fired power plant, part of its $13.2bn investment programme for the 2011-16 period.
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Issue 219 - 4 November 2011
NIGERIA
Nigeria seeks $50bn in foreign investment to reactivate power sector
With generation capacity finally creeping upwards, the federal government is turning to foreign investors to provide the huge sums needed to overcome crippling power shortages. But targets still remain both ambitious and insufficient, writes David Slater in Abuja
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Power update: Egypt plans for steadily growing demand
Egypt has a number of projects in preparation to increase its installed capacity of around 25,000MW, with gas-fired generation playing a central role alongside growing interest in renewables and even nuclear power
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DJIBOUTI
Boost to Djibouti’s hopes for geothermal power
Though World Bank funding has been secured for exploration drilling, there remains considerable uncertainty over project finance and partnership arrangements to develop geothermal potential, writes Adrian J Browne
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KENYA
Chinese company wins coal mining deal
China’s Fenxy Mining Industry Limited has won Kenya’s first coal mining licence, for two blocks in the Mui Basin in the Kitui and Mwingi area of central eastern Kenya. The blocks, C and D, were offered in an open tender launched in September 2010.
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Olkaria expansion
Kenya Electricity Generating Company has given a consortium of Japan’s Toyota Tsusho Corporation and South Korea’s Hyundai Engineering Company a turnkey contract for the Olkaria I extension and the new Olkaria IV geothermal plant.
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SOUTH AFRICA
World Bank funding for renewables
The World Bank board has approved $250m in funding for the Eskom Renewables Energy Support Project, to help implement the Upington concentrating solar power and Sere wind power plants.
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COUNTRIES AND MARKETS
RWANDA: Uganda interconnection
The Energy Water and Sanitation Authority is seeking expressions of interest for the construction of a 220kV transmission line between Mirama, in south-west Uganda, and Birembo, Rwanda, and an associated substation.
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RWANDA: Peat plant
The Energy, Water and Sanitation Authority is seeking bids to provide owner engineering services for implementation of a 15MW peat power plant project.
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Issue 218 - 21 October 2011
ETHIOPIA
Ethiopia goes it alone (if possible) in mission to develop mega HEP schemes to supply neighbours
The self-proclaimed water tower of Africa has made advances in developing its hydroelectric-driven industry, adding to generation capacity and strengthening regional interconnections. Companies working with EEPCo speak highly of the Ethiopians’ technical skills and the government has big plans to develop cross-border links, but there remain significant obstacles to overcome before Ethiopia can fulfil its ambition to serve as eastern Africa’s leading power supplier, writes Adrian J Browne
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Ethiopian T&D network
Ethiopia lacks a nationwide transmission and distribution network, especially in the rural areas where 85% of the population live.
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EAST AFRICA
Camco wins two contracts
AIM-listed green power developer Camco International has won two contracts in East Africa worth $1.8m in revenue over the next three years. The first is for a $1m solar photovoltaic (PV) clusters project in Tanzania, and the second for an $800,000 project to provide technical assistance to clean development mechanism (CDM) projects in Uganda.
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UGANDA
Bujagali dam to start up first 50MW unit
The long-awaited Bujagali dam is due to start up its first 50MW unit in November, helping to alleviate the country’s electricity shortage. Energy and mineral development minister Irene Muloni said the other four units would be added in stages, with the whole 250MW commissioned by April 2012.
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NIGERIA
Alstom to supply Afam turbine
The Rivers State government has given Alstom a E40m ($55m) contract to supply a 160MW GT13E2 gas turbine for the second phase of the Afam independent power plant to be built in Port Harcourt.
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COTE D’IVOIRE
Globeleq signs Azito expansion agreement
The long-mooted expansion of the Azito power plant is set to go ahead with the signing of an amended concession agreement by Globeleq Generation subsidiary Azito Energie SA.
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MOZAMBIQUE
South Korea, India to finance solar power
The governments of Mozambique and South Korea have signed an agreement for a $35m soft loan to finance the construction of three solar power stations in the Muembe, Mecula and Mavago districts in the northern province of Niassa.
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SOUTH AFRICA
Projects and policy remain in flux
Doubts remain over the substance and implementation of key elements of government policy towards the electricity supply industry and major projects intended to overcome shortfalls in generation capacity, according to a range of government and Eskom statements in recent weeks.
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ALGERIA
Price rises ‘out of the question’, borrowing guarantees in place
An eventual move towards cost-reflective tariffs is not ruled out, but “a rise in the price of electricity is out of the question during the next five years”, Sonelgaz Holding president director-general Noureddine Bouterfa said on 10 October, as he announced the state utility’s 2010 results.
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COUNTRIES AND MARKETS
UGANDA: Tender for Karuma project manager
The Ministry of Energy and Mineral Development is inviting bids by 4 November from consultants to serve as project manager for construction of the 600MW Karuma hydroelectric project on the Victoria Nile River.
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COMPANIES AND PEOPLE
SNEL: Management contract tendered again
The Democratic Republic of Congo government’s Comité de Pilotage de la Réforme des Entreprises Publiques (Copirep) has again tendered for a World Bank Group (WBG)-financed management contract to run troubled parastatal Société Nationale de l’Electricité (Snel).
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VINCI: Moroccan facility management deal
French group Vinci has set up a new facilities management joint venture in Morocco, working through its Cegelec Maroc and Vinci Facilities subsidiaries.
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Issue 217 - 7 October 2011
GUINEA
Condé looks to China to ease power woes
China is once again wooing the new Guinean government, offering badly needed power investment and a major bauxite project, writes Our Conakry Correspondent
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NIGERIA
Power projects lead infrastructure drive
Critical to better use of Nigeria’s hydrocarbons wealth are efforts to tackle infrastructure bottlenecks in power and transportation by implementing key projects. Government and Power Holding Company of Nigeria (PHCN) promises of large-scale additions to electricity generation and transmission infrastructure have consistently foundered in the face of lack of implementation, co-ordinating minister of the economy and finance minister Ngozi Okonjo-Iweala told African Energy.
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SENEGAL
Wärtsilä to expand Bel Air, Kahone power plants
Under pressure to tackle crippling power shortages, Senelec has given Finland’s Wärtsilä Corporation turnkey contracts worth nearly E60m ($79m) to expand its two existing power plants at Bel Air and Kahone. The Bel Air power plant in Dakar was built in 2005 and the Kahone plant at Kaolack in 2006. Both facilities are powered by 18-cylinder Wärtsilä 46 engines, and are maintained and operated by Wärtsilä under a 15-year agreement signed in 2006.
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CAMEROON
Lom Pangar work to start
The government and the state Electricity Development Corporation have signed a contract with China International Water and Electric Corporation (CWE) for construction of the Lom Pangar dam to regulate the flow of the Sanaga River.
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SOUTH AFRICA
AfDB funds Eskom renewables plan
Eskom and the African Development Bank (AfDB) signed two loan agreements totalling $365m in Washington on 25 September for the first large-scale implementation of renewable wind and solar generation in Eskom’s history.
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ALGERIA
Sonelgaz waits on more thermal generation bids
Société Algérienne de Production de l’Electricite (SPE) has invited bids to build a 500-600MW gas-fired power plant in the Hassi Messaoud area.
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MOROCCO
ONE/Onep fusion agreed at last
The long-awaited merger of the kingdom’s two major utilities, Office National de l’Electricité (ONE) and Office National de l’Eau Potable (Onep) into a single public sector company called Office National de l’Electricité et de l’Eau (Onee) has finally been approved by the Chamber of Counsellors, the 270-member upper house of parliament.
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TANZANIA
Chinese mining, pipeline projects to boost power sector
China’s Sichuan Hongda Group has signed a $3bn agreement for mining and power generation at the Mchuchuma coal and Liganga iron ore deposits in the Iringa region of southern Tanzania, described as the biggest private investment in East Africa, while China has agreed financing for new gas pipeline infrastructure.
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KENYA
Opic approves loan for Olkaria expansion
The US’ Overseas Private Investment Corporation (Opic) has approved a loan of up to $310m for Ormat Technologies to finance a project to double the generating capacity of the Olkaria III geothermal power plant.
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RWANDA
Wärtsilä to supply KivuWatt power plant
ContourGlobal subsidiary KivuWatt has given Finland’s Wärtsilä Corporation a contract to supply the power plant for its project to harness methane gas from Lake Kivu. The plant will be powered by 20-cylinder Wärtsilä 34SG gas-powered engines and have an electrical output of 25MW.
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COUNTRIES AND MARKETS
BURUNDI: New power supply
Energy and mines minister Moise Bucumi has promised an improvement in power supply following the signing of a contract with Tanzania-based generator supplier Pivotech for 25MW of additional power.
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EGYPT: Kom Ombo CSP studies
The New and Renewable Energy Authority (NREA) has invited expressio
ns of interest from consultants for work on the planned 100MW Kom Ombo concentrated solar power facility.
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EGYPT: World Bank thermal funding talks
The World Bank has been discussing two new loans to Egypt Electricity Holding Company to add to thermal generation capacity.
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MOROCCO: Jorf Lasfar coal storage tender
Office National de l’Electricité (ONE) has issued a tender (SP 465 985) for the turnkey installation of a new coal storage area at Jorf Lasfar.
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MOZAMBIQUE: New coal-fired capacity
The government has given its approval for India’s Jindal Steel & Power to launch studies for construction of a 2,640MW coal-fired power plant in Tete province.
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TUNISIA: CSP plans
State utility Société Tunisienne de l’Electricité et du Gaz (Steg), the African Development Bank (AfDB) and World Bank are working on a Clean Technology Fund (CTF) scheme, the Concentrated Solar Power scale-up investment plan, to develop a 100MW CSP unit.
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Issue 216 - 23 September 2011
Bumbuna set for expansion despite confusion over rival plans
African Minerals’ need to power its iron ore project seems difficult to reconcile with the government’s aims to bring electricity to domestic users, writes Adrian J Browne
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TANZANIA/UGANDA
Border hydro project moves ahead
Tanzania and Uganda have signed a memorandum of understanding (MoU) to facilitate the development and operation of the Kikagati-Murongo hydropower project on their joint border.
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RWANDA
Orascom plans methane plant
Egypt’s Orascom Construction Industries has announced plans for a 50MW methane power plant at Lake Kivu.
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TANZANIA/KENYA
Sweco wins electrification contracts
Swedish consultant Sweco has been awarded contracts worth E8.7m ($12m) aimed at improving the electricity supply in several areas of Tanzania and Kenya.
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SOUTH AFRICA
ABB to build pilot solar plants
Eskom has given ABB a contract to construct two solar photovoltaic (PV) power plants.
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New chief executive for IPSA
Peter Earl has quit as chief executive of private power developer IPSA Group, and will be replaced by Philip Metcalf.
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EGYPT
Turbines for Banha, Giza North
GE is to supply six gas turbines to the Egyptian Electricity Holding Company for the Giza North and Banha combined-cycle power plants under contracts totalling $300m, adding 2,250MW – or 10% – of capacity to the power grid.
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Banha tender
Middle Delta Electricity Production Company is seeking bids for the critical piping and valves package for the 750MW Banha combined cycle plant.
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Orascom wins Giza North civil works contract
Cairo Electricity Production Company has given Egypt’s Orascom Construction Industries a contract valued at $181m for the civil works package for the 1,500MW Giza North combined cycle power plant.
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TUNISIA
EPC route for Sousse CCGT plant
Tunisia appears to have abandoned hopes of launching independent power projects (IPPs) during the current period of political reform and economic uncertainty.
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MOROCCO
EIB considers solar funding
The European Investment Bank (EIB) is considering E300m ($410m) of financing for the Moroccan Agency for Solar Energy’s planned 500MW solar power plant at Ouarzazate.
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