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A spectacular improvement in relations between DRC and Rwanda is paving the way for the much-anticipated development of regional energy projects, writes François Misser with Jon Marks

Booz gets Sonatrach engineering consultancy; KenGen to issue bond; Circlie Oil share placing; DRC-China deal amended

Tenders for the construction of the 129-145MW Ruzizi III hydropower dam could be launched by year-end or early in 2010, write François Misser, and Jon Marks in Bordeaux.

After years of talk, the five governments supporting the Western Corridor (Westcor) project – Angola, Botswana, Democratic Republic of Congo, Namibia, and South Africa – have decided to shelve the scheme to provide electricity from the planned 3,500MW Inga III to the Southern African Power Pool (SAPP).

Africa’s power pools are talking up their potential to endow the continent with a larger, more rational electricity supply infrastructure.

The government has set an ambitious timetable for Snel and other ailing companies to be prepared for market, while also drawing up a new electricity law, and writing legislation that requires new regulators and other institutions. Officials in Kinshasa are bemused

An early draft of a new hydrocarbons law was presented in late March by senator Fidèle Sulubika, but still awaits amendments to include elements drawn from the legislation of other African countries such as Angola, Nigeria and Algeria.

Kinshasa’s agreement with China for Sinohydro to build the Zongo II hydroelectric power project represents a significant step forward in implementing Beijing’s commitments to install infrastructure in return for access to natural resources. The deal presents a new challenge to developer MagEnergy, which has withdrawn Zongo II from its list of planned projects in DRC, write François Misser and Jon Marks.

Its MagEnergy Inc subsidiary has “found the Democratic Republic of Congo to be a very challenging investment environment,” TSX Venture Exchange-listed MagIndustries Corporation president and chief executive William Burton told the ambitious Canadian company’s first ever investor conference call, on 17 April. But Mag is pushing on with its Inga II refurbishment work, talks to finalise contracts – originally initialled in September 2005 – for work on four more Inga II generators and plans to build a 250MW hydropower dam at Busanga in Katanga (AE 146/5-9). It is also very bullish about fund-raising and other prospects for its potash and forestry schemes in Republic of Congo, which Burton confirmed would cost around $1.1bn as currently configured – releasing data that received a respectful hearing from the 89 analysts and others who dialled into the 17 April teleconference.

Aggreko opens $10m permanent site in South Africa; AREVA: Uranium deal with DRC; Egyptian giant wins WDEPC Abu Qir contract

Isarene drilling to start in May; Russian field development to proceed; Minister says Tullow will get Lake Albert stakes; Chevron awards FEED, New find on Abu Qir for Edison; Burullus Gas extends rig contract; Essar gets back OPL 226

Following PA Resources’ decision to reduce its licence share in the Marine XIV licence to 12.5% from 85%, the state Société Nationale des Pétroles du Congo, which has a 15% stake, has decided not to exercise its pre-emption right.

DR CONGO: EnerGulf signs JOA for Lotshi; EGYPT: El Paso in asset swap with RWE; MOROCCO: Circle makes new gas find; UGANDA: Heritage considers rail/barge options; UGANDA: Global farm-in approved

Democratic Republic of Congo is at the centre of an increasing and uneasy stand-off that ostensibly pits the People’s Republic of China’s $9bn minerals-for-infrastructure contract against the

Despite early hopes that Africa might escape the worst of the global financial crisis, sharp falls in oil and metals prices will hit many countries hard.