Page 11 - AfrElec Week 30

AfrElec
NEWS IN BRIEF
AfrElec
INVESTMENT
Tata Power to exit Africa, focus on India
Tata Power is seeking to o oad its stakes
in two joint ventures in South Africa and Zambia, as it reduces its nancial liabilities and focuses on domestic operations in India. e move comes as the company is struggling to service its debt obligations.
e company is looking for buyers for
its 50% stake in wind power rm Cennergi in South Africa and a separate 50% stake in Itezhi Tezhi Power Corp. (ITPC) in Zambia. It has not been made clear whether the stakes could be bought out by the existing joint venture partners.
South African company Exxaro Resources is Tata’s partner in Cennergi, while Zambia’s largest power company, ZESCO, holds the remaining stake in ITPC. Cennergi had commissioned two wind farms in 2016 – the 134-MW Amakhala Emoyeni and the 95- MW Tsitsikamma. ITPC, meanwhile, owns a 120-MW hydro power project, and has been operating commercially for three years.
e push for a sale comes a er Tata also struck a deal to sell its 30% stake in Arutmin Indonesia and associated companies in coal trading and infrastructure for $401mn. e company has already received $161mn, comprised of $94mn in cash and the balance as receivables.
ITPC’s project was funded by African Development Bank (AfDB), the Development Bank of Southern Africa (DBSA), the Netherlands Development Finance Company (FMO) and Proparco. e Indian government
also provided a line of credit through India Exim Bank to the Zambian government for the project.
COAL
Egypt to hold community
consultation for coal power
project
Egypt’s Ministry of Electricity and
Renewable Energy is set to hold a
community consultation session to assess
the environmental and social impacts of the proposed Hamrawein coal power station project. e scheme has been proposed for the city of El-Quseer on the Red Sea coast.
Some of the issues that are due to be addressed during the session include the safety standards of the technology that would be used for the project.
e 6,000-MW Hamrawein coal power station project is being developed by a consortium of China’s Shanghai Electric and Dongfang Electric Cooperation, and Egypt’s Hassan Allam Construction. e plant is expected to take 6-7 years to build.
e land allocated for the implementation of the plant has already been prepared for construction, and all studies completed. In addition, all licences and approvals required for the project have been issued. e community consultation session is thought to be the only remaining step required before construction can begin.
Under to the agreement, the consortium
will be responsible for the construction, design, installation, and operation of the Hamrawein power station. It will also be responsible for the provision of banking facilities to fund the project.
According to reports from January 2016, the plant would be funded by the Industrial and Commercial Bank of China (ICBC), the Export and Import Bank of China (EXIM), and the Chinese Development Bank (CDB). Loans will be payable by Egyptian Electricity Holding Co. (EEHC) over a period of 15 years.
So far, the CDB has made a bid to lend Egypt’s Electricity Holding Co. $3.7bn to fund the coal- red power plant. Talks with the Chinese bank over the o er are reportedly ongoing.
GENERATION
Victoria signs term sheet with Aksa Energy
Victoria Oil & Gas, whose wholly-owned subsidiary, Gaz du Cameroun (GDC), is the fully integrated onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, is pleased to announce that it has signed a non-binding term sheet with Aksa Enerji Uretim to supply Aksa Energy with up to 25mmsfd of gas
to Aksa Energy’s planned 150-MW power station, to be located in Bekoko, Douala, Cameroon.
e Term Sheet is subject to various conditions precedent, including government approvals and the signing of a Power Purchase Agreement by Aksa Energy with Eneo Cameroon or Sonatrel. e key commercial terms between Aksa Energy and GdC include: Gas Price: US$6.75 per mmBtu; Term: 25 years, plus option to extend for an additional ve years; and 70% Take or pay component. VICTORIA OIL & GAS, July 29, 2019
Wärtsilä gas engine
solutions will support local
industry by increasing
Egyptian power plant’s
capacity by two thirds
e technology group Wärtsilä will supply additional capacity for an existing power plant located in Borg El Arab, an industrial city
Week 30 31•July•2019
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