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SAPP Investment Conference:

Windhoek September 2005


M. J. Tumbare,Zambezi River Authority

l Corporate

Structure of ZRA
l Major Functions of ZRA
l Highlights of ZRA Activities and
Achievements.
l Project Opportunities on Common
Zambezi River.
l Batoka Hydro Electric Project.
l Conclusion.

l Council

of Ministers of ZRA (the Council)


l Board of Directors (the Board)
l Chief Executive
l Heads of Departments.
l Director Projects and Dam Safety.
l Director Environment and Water
Resources Management.
l Director Finance/Corporate Secretary.

l Developed

a Water Purchase Agreement


with ZESA and ZESCO for hydropower
generation .
l Developed a good track record for the
maintenance & operation of the third
largest person- made reservoir in the world.
l Experience in managing relationships
between two governments in developing &
sharing of water resources.

l Carried

out pre-feasibility studies for


potential dam sites on the common
Zambezi River.
l Developed a priority sequencing of
the development of hydro-electric
projects on the common Zambezi.
l Completed feasibility studies for the
Batoka Hydro-electric project.

SCHEME

Batoka Gorge
Devils Gorge
Victoria Falls
South
Mupata Gorge
Katombora

Installed
Estimated
Capacity (MW) Project Costs.
(Million US $)
1 600
2 500
1 200

1 450

390

440

1 085

2 040

Regulation Dam

295

SCHEME

RATIO:

AVERAGE
(O&M)/(INST.CAP) SPECIFIC
GENERATION
COSTS
(US$/MW)
(USc/kWh)

Batoka Gorge

5 700

1.78

Devils Gorge

7 000

1.93

Victoria Falls
South
Mupata Gorge

6 400

2.10

8 600

2.02

l In

1992, ZRA Commissioned the Batoka


Joint Venture Consultants (BJVC) to carry
out a feasibility study for the Batoka HES.
l BJVC was a consortium comprising, Knight
Piesold of UK, Lahmeyer International and
Electrowatt of Germany.
l 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.

l Batoka

Dam principal data:


l Catchment Area 508 000 km2
l Reservoir Surface Area 25.6 km2
l Capacity 1.680 X 109 m3
l Dam Type RCC Gravity Arch Dam.
l Height 181 m.
l Spillway Type Crest Overflow with 12
Radial Gates.

l Power

Stations:
l Two Underground Power Caverns (one North
and one South)
l Installed Capacity 1600 MW (2X 800MW)
l Generation Efficiency 86%.
l Other Infrastructure:
l Transmission Lines
l Access Roads and Housing.
l Social Amenities.
l Total Project Costs US$ 2 500 Million.

Other key activities carried out.


l A comprehensive EIA and SIA carried out
(1993 &1998).
l 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.

l The

Project Development plan has been


updated (2005).The Batoka project cycle
is seven (7) years.
l ZRA has consulted with its key
stakeholders including ZESA, ZESCO &
SAPP.
l ZRA is developing a project strategy and
SPV which ensures that this project can
be financed.

Batoka Project Partners and Structure


Utilities
ZRA
Investors
ZESA/ZESCO
Batoka Hydro
Electric Company

l The

Batoka Hydro-Electric Company


will be the SPV for the Project.
l ZRA has set up a Project
Development Executive Team to
manage the Projects facilitation prior
to the setting up of the SPV.
l Other Investors will be invited to take
part in the project.

l The

Batoka project is one of the most


attractive projects in the region.
l It is ideally suited for providing peaking
power.
l It is strategically located close to the SAPP
markets.
l A lot of ground work has already been done.
l The commencement time for Batoka Project
is short.

l Conjunctive

operation of Batoka with existing


system adds US$160.3 million annually in
earnings in excess of that realised by nonconjunctive operation.
l CO2 emission savings amounting to 9 million
tonnes/year can be credited to the Batoka
Project if constructed.
l Batoka Project has an EIRR of 10.2% (1012%),a B/C ratio of 1.21 (>1.0) and an FIRR
of 17%.

l ZRA

has consulted widely with its key


stakeholders in Zimbabwe and Zambia.
l ZRA also has several other attractive projects
to offer on the Zambezi.
l The Batoka project cycle is seven (7) years.
l ZRA is there as a partner to make the
Zambezi water resources a key contributor to
the regional hydropower needs.