1. SOUTHERN AFRICAN POWER POOL PPP Power Projects in Southern Africa
Regional and Sub-Regional Issues
PPP Power Projects in Southern Africa
Addis Ababa, ETHIOPIA
30 June – 1 July 2011

2. Introduction to the SAPP Installed Capacity & Generation Mix
KEY ISSUES
Introduction to the SAPP
Installed Capacity & Generation Mix
Challenges to Cross-Border PPP Projects in the Power Sector
Measures and Mechanisms to Address the Challenges
Role of the Power Pool

3. INTRODUCTION TO THE SAPP
1.1 Geographic
DR Congo
Tanzania
Zambia
Angola
Malawi
Zimbabwe
Mozambique
Botswana
Namibia
South Africa
Lesotho
Swaziland
12 Countries
230 Million people
Average Electricity growth rate 3% p.a.
For South Africa demand growth was 4.9% in 2007 and for whole region 4.6%.

4. 1.2 Membership
CEC and LHPC from Zambia are the new Members of SAPP

5. INSTALLED CAPACITY & GENERATION MIX

6. 2.2 Generation Mix & Contributions – Year 2011
74.3% Coal
20.1% Hydro
4.0% Nuclear
1.6% Gas/Diesel

7. Lack of enabling environment for PPP
CHALLENGES TO CROSS-BORDER PPP PROJECTS
Lack of enabling environment for PPP
Government policies yet to be harmonized
Legal & regulatory frameworks inconsistent
Incomplete power sector reforms
National Utilities still enjoy monopoly
PPP concepts not yet understood
Policies on PPPs not yet developed in most countries

8. CHALLENGES TO CROSS-BORDER PPP PROJECTS
Low Electricity Tariffs – Inadequate and unsustainable levels with attendant challenges and NOT able to provide right signals for:
New Investments from the Private Sector
Energy conservation, efficiency & substitution practices by customers

9. Example of Cross-Border Transmission Projects
DRC
2013: ZIZABONA -220/330 kV
Tanzania
2013: Mozambique Malawi
Angola
Malawi
2014: Zambia - Tanzania kV
Zambia
2015:DRC - Angola – 400 kV
Zimbabwe
Namibia
Mozambique
2016: MOZAMBIQUE BACKBONE -RSA
Botswana
2017: Namibia – Angola
Swaziland
South Africa
Lesotho

10. MEASURES & MECHANISMS TO ADDRESS THE CHALLENGES
Policy choices to address challenges should be developed and need to recognize:
Need for financial viability – implement the policy of cost reflective/sustainable tariffs
Develop appropriate policy frameworks for PPPs
Complete power sector reforms in line with policy aspirations: Improve governance & operations
Tariffs: Regulators need to regulate towards cost reflectivity to allow existing utilities to recover operational costs and contribute to capital costs

11. ROLE OF THE POWER POOL
Assist the region to harmonize PPPs policies on cross-border projects
Assist the region with the development of technical standards and the pool grid code
Develop transmission wheeling charges and wheeling model for all cross-border projects
Assist with the standardization of wheeling and power purchase agreements between parties
Organize workshops on PPPs and concepts

12. THANK YOU