Page 16 - AfrElec Week 12

AfrElec
NEWS IN BRIEF
AfrElec
creditors to address both the financing and debt relief needs of IDA countries.
We will seek endorsement for the Proposal at the Development Committee during the Spring Meetings (April 16–17).
WORLD BANK
COAL
Tlou Energy cuts costs in Botswana
Tlou Energy has announced sever cost reductions affecting its CBM operations in Botswana as it faces the effects of the coronavirus (COVID-19) pandemic and lower oil and gas prices.
It said in a statement that it would shut-in one or possibly both of the production pods at its Lesedi CBM project so that current funds can last longer and more time is available to conclude ongoing commercial and project finance negotiations.
The Lesedi 3 and 4 production pods have been flowing gas for many months with sustained gas flow rates having been achieved from both pods.
Increased sustained gas flow rates are anticipated to take some considerable time, based on the currently available data, unless additional wells are drilled to facilitate the dewatering process. A decision to drill additional wells is being considered but no decision has yet been made.
In the coming weeks, the Company is intending to shut-in one or possibly both of the production pods as sufficient data has now been gathered indicating the presence of potentially commercial gas in the coal seams.
Shutting-in the wells reduces unnecessary expenditure and stops flaring of gas that could otherwise be converted to electricity and
sold once the project has a Power Purchase Agreement (PPA) in place and is connected to the grid.
TLOU ENERGY
HYDRO
Ethiopia takes time to offer new GERD proposals
Almost a month after walking out of US- brokered tripartite negotiations, Addis Ababa is working on another proposal for an agreement it said it will deliver to Egypt and Sudan soon.
“We won’t subscribe to an agreement just because the US and the World Bank came
forward with it. We need to take time and sort out sticking points,” Ethiopian Foreign Minister Gedu Andargachew told AP last week.
Asked when the negotiations would resume, Andargachew said in another interview with The Reporter Ethiopia that
the Ethiopian side does not believe the negotiations have stopped. “Therefore,
after Ethiopia finishes the discussions it is conducting internally and when the Egyptians fully recognise that Ethiopia has the right to use its water resources, the negotiations will resume without any third party involved,” he said.
This is not new for Ethiopia, according to Mohamed Hegazi, former deputy to Egypt’s foreign minister. “It has repeatedly adopted the strategy of playing for time, negotiating for concessions and withdrawing at the last minute.” Hegazi described this step as another delaying tactic.
“It had previously suggested that South Africa mediate to resolve the differences. Then, it called last week for holding a summit for the Nile Basin countries to resolve the dam issue. Finally, now it claims that it is working on its own proposal; more time wasting and
a manifestation of lack of seriousness, bad intention and willingness to spoil whatever is reached in Washington,” Hegazi said.
A final agreement on the filling and operation of the dam was supposed to be signed by Egypt, Sudan and Ethiopia in Washington at the end of last month. While Ethiopia refused to attend that round of talks, Egypt initialed the agreement. Sudan preferred to wait until Ethiopia signs the accord.
As a result, the tripartite negotiations that started in November last year in Washington came to a halt. In the meantime, the dam is more than 70 per cent built.
Kenya’s Kaptis hydropower
project to see financial
close in 2020
A joint development agreement, to bring the Kaptis hydropower project in Kenya through to financial close and construction in 2020, has been signed between the project owner and an equity fund manager.
The 14.7MW Kaptis run of river hydropower project developer, Tembo Power, has signed a Joint Development Agreement (JDA) with Metier, an independently owned private equity fund manager, together with its partner WK Construction, a leading contractor in the field of hydropower in sub- Saharan Africa.
This agreement now allows the partners to appoint lenders and prepare for financial closing, expected this year, and to start construction.
The company had started the development of Kaptis, in Western Kenya, in 2013 after
its Kenyan partner Humphrey Mulindi identified the site and conducted preliminary investigations to assess its actual potential.
Run of river hydropower is one of the most environmentally friendly energy technologies globally, stated the company. Projects between 10MW and 50MW offer inexpensive and reliable electricity in areas where the national electrical utilities need it most.
Since then, Tembo Power has expanded its Kenyan portfolio with additional 17MW and 24MW hydropower projects that are currently in development.
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Week 12 26•March•2020