SAPP Investment Conference: Windhoek – September 2005

M. J. Tumbare,Zambezi River Authority

�Corporate Structure of ZRA�Major Functions of ZRA�Highlights of ZRA Activities and

Achievements.�Project Opportunities on Common

Zambezi River.�Batoka Hydro Electric Project.�Conclusion.

� Council of Ministers of ZRA (the Council)� Board of Directors (the Board)� Chief Executive� Heads of Departments.

� Director – Projects and Dam Safety.� Director – Environment and Water

Resources Management.� Director – Finance/Corporate Secretary.

.

�Developed a Water Purchase Agreement with ZESA and ZESCO for hydropower generation .

�Developed a good track record for the maintenance & operation of the third largest person- made reservoir in the world.

�Experience in managing relationships between two governments in developing & sharing of water resources.

�Carried out pre-feasibility studies for potential dam sites on the common Zambezi River.

�Developed a priority sequencing of the development of hydro-electric projects on the common Zambezi.

�Completed feasibility studies for the Batoka Hydro-electric project.

295Regulation Dam Katombora

2 0401 085Mupata Gorge

440390Victoria Falls South

1 4501 200Devils Gorge

2 5001 600Batoka Gorge

Estimated Project Costs. (Million US $)

Installed Capacity (MW)

SCHEME

SCHEME RATIO: (O&M)/(INST.CAP) (US$/MW)

AVERAGE SPECIFIC GENERATION COSTS (USc/kWh)

Batoka Gorge 5 700 1.78

Devil’s Gorge 7 000 1.93

Victoria Falls South

6 400 2.10

Mupata Gorge 8 600 2.02

� In 1992, ZRA Commissioned the Batoka Joint Venture Consultants (BJVC) to carry out a feasibility study for the Batoka HES.

� BJVC was a consortium comprising, Knight Piesold of UK, Lahmeyer International and Electrowatt of Germany.

� Their findings are that a Roller Compacted Concrete Gravity Arch dam with two underground power stations of 1 600 MW total installed capacity, is the optimal project sizing for the site.

�Batoka Dam principal data:�Catchment Area – 508 000 km2

�Reservoir Surface Area – 25.6 km2

�Capacity – 1.680 X 109 m3

�Dam Type – RCC Gravity Arch Dam.�Height – 181 m.�Spillway Type – Crest Overflow with 12

Radial Gates.

� Power Stations:� Two Underground Power Caverns (one North

and one South)� Installed Capacity – 1600 MW (2X 800MW)� Generation Efficiency – 86%.

� Other Infrastructure:� Transmission Lines � Access Roads and Housing.� Social Amenities.

� Total Project Costs – US$ 2 500 Million.

� Other key activities carried out.� A comprehensive EIA and SIA carried out

(1993 &1998).� Project presented to financiers such as ADB

who have expressed an interest to finance the next phase of final engineering designs with Tender Documents.

� With the ZESA and ZESCO Power Station extensions at Kariba, the Batoka Project becomes more critical for the conjunctive operation of the two dams which increases firm capacity at Kariba.

�The Project Development plan has been updated (2005).The Batoka project cycle is seven (7) years.

�ZRA has consulted with its key stakeholders including ZESA, ZESCO & SAPP.

�ZRA is developing a project strategy and SPV which ensures that this project can be financed.

Batoka Project Partners and Structure

ZRA UtilitiesZESA/ZESCO

Investors

Batoka HydroElectric Company

�The Batoka Hydro-Electric Company will be the SPV for the Project.

�ZRA has set up a Project Development Executive Team to manage the Project’s facilitation prior to the setting up of the SPV.

�Other Investors will be invited to take part in the project.

� The Batoka project is one of the most attractive projects in the region.

� It is ideally suited for providing peaking power.

� It is strategically located close to the SAPP markets.

� A lot of ground work has already been done.� The commencement time for Batoka Project

is short.

� Conjunctive operation of Batoka with existing system adds US$160.3 million annually in earnings in excess of that realised by non-conjunctive operation.

� CO2 emission savings amounting to 9 milliontonnes/year can be credited to the BatokaProject if constructed.

� Batoka Project has an EIRR of 10.2% (10-12%),a B/C ratio of 1.21 (>1.0) and an FIRR of 17%.

� ZRA has consulted widely with its key stakeholders in Zimbabwe and Zambia.

� ZRA also has several other attractive projects to offer on the Zambezi.

� The Batoka project cycle is seven (7) years.� ZRA is there as a partner to make the

Zambezi water resources a key contributor to the regional hydropower needs.

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