September 23, 2017

SA starts negotiations on huge DRC hydropower project

To avoid being caught unawares in the event of a power supply cut, the South African government is widening its supply options. And one of them is the construction of the Grand Inga Hydropower Project in the Inga Dam in the Democratic Republic of Congo (DRC).

In a recent development involving the project, the government has started what have been termed “offtake negotiations” with a consortium, according to what Ompi Aphane, Deputy Director General of Policy, Planning and Clean Energy at the Department of Energy, told Member of Parliament in Cape Town.

“The purpose of the treaty is to develop a framework so that the two countries can find the best economically feasible options for the development of the project,” Aphane explained.

Subject to conditions in the agreement being met, South Africa will commit to buying power generated from Phase One of the Inga Dam project and subsequent phases.

Kolwezi will be the delivery point. South Africa will invest capital for the transmission infrastructure from Kolwezi to South Africa. in addition, the two countries would agree to purchase and/or sell portions of the electricity generation. South Africa would commit to offtake 2, 500 MW and DRC 2,300 MW to secure funding, meaning the two countries would agree to purchase/and or sell portions of the electricity generation.

A concessionaire will be chosen by the end of 2023, Aphane revealed.

Information credits: adapted for African Mining Brief from a report published on Fin24

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