BUMBUNA HYDROELECTRIC PROJECT

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• BUMBUNA HYDROELECTRIC PROJECT

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• BUMBUNA HYDROELECTRIC PROJECT

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Overview

• Major Issues in SLs Power Sector
• Reducing poverty and catalyzing economic growth
  through reliable power supply
• Introduction of the Bumbuna Hydroelectric Project
• how Bumbuna addresses the issues in SLs Power
  Sector
• Status of BHP Implementation

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Overview(contd.)

• WBs safeguard policies
• Schedule for completing BHP
• Implementation arrangements for the BHP
• Cost estimate for completion of BHP
• Preliminary Donors commitment for completion of
  BHP
• Governments financial commitments
• Closing the financing gap

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Major Issues in the SLs Power Sector

• Unreliable Power Supply
• Extremely high tariffs (about US 19 cts/kWh)
• High system losses (about 35 for the moment)
• High operational costs (fuel)

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Reducing poverty and catalyzing economic growth
through reliable power supply

• Providing electricity for schools, health
  clinics, small scale industries, private
  households
• Improving security in urban environment
• Providing power for industry and commerce

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Introduction into the BHP

• Located in the Northern Province some 200 km from
  Freetown
• Preparations under way since the 1970s

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Description of Works

• Civil Works comprising a 88 m high rockfill Dam,
  a Power House, Switchyard, two diversion tunnels,
  spillway discharges and bottom outlet
• Electromechanical Equipment including two
  turbines, two generators with output of 25 MW
  each, step-up transformers, switchgears, etc
• Hydromechanical Equipment comprising an Intake
  Tower, two Spillways and other accessories.
• Transmission Line consisting of 200 kilometres
  single-circuit conductors at 161 kV from Bumbuna
  to the substation in Freetown
• Shield-wire system to provide power to towns
  along the T/L, namely Makeni, Magburka, Lunsar,
  Port Loko, Masiaka, Kambia, etc.

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How Bumbuna addresses issues in Sierra Leones
Power Sector

• will provide reliable low cost power
• will lead to significant reduction in electricity
  tariffs
• will lead to significant reductions in oil
  imports
• will widen access to electricity particularly in
  towns along the transmission line

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STATUS OF PROJECT

• Project to date has been supported by the
  Government of Italy (GOI) and AfDB

• Works suspended since 1st June 1997 due to rebel
  activity

• Works completed at suspension time is almost 85

• A consulting firm commissioned by the AFDB and
  GOSL undertook a technical and financial audit
  of the project in 2002 they concluded that the
  quality of workmanship during construction was
  good and that the work should be completed by the
  existing contractors

• For reasons explained, the GOSL has decided that
  the BHP be completed as soon as possible.

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WBs safeguard policies
Compliance with World Bank safeguard and other
policies on HEP of this stature, Government is
taking the following measures

• Update of the Environmental Assessment and
  undertaking the Resettlement Action Plan

• Institutionalizing an Environmental experts
  panel for the BHP

• Institutionalizing a dam safety panel and
  preparation of an emergency Preparedness
  Emergency Plan

• TA- Study for the post-commission Operation

• Assignment of an experienced HEP Engineer to the
  PIU

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Implementation arrangements for the BHP

• Involves the GOSL
• Ministry of Energy and Power
• BHP Steering Committee
• PIU

• Consultants
• Studio Ing. Pietrangeli

• Contractors
• Transmission Line and Freetown Substation ABB -
  Italy
• all other Contracts under leadership of Salini
  Construttori

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Fairness in contracts

• The existing contracts between the GOSL and the
  Contractors need to be negotiated and need to be
  faire to all concerned.
• They will need to be acceptable to the major
  donors involved in this project

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COST ESTIMATES(for details refer to table 1)
LOCAL COST
Le 23.52 BILLION
FOREIGN COST
US 42.82 MILLION
TOTAL COST
US 52.60 MILLION
OUTSTANDING CLAIMS
US 8.65 MILLION
TOTAL COST FOR IMPLEMENTATION OF PROJECT
US 61.52 MILLION
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Preliminary Donor Commitments
AfDB Residual balance from previous loans
US 9.6 million US 8 Million to be used to
pay outstanding claims GOI
Committed US 11.5 Million IDA PPF of US
2.0 Million PRG of US 20 Million
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Government's financial commitments

• Settlement of outstanding contractors bills by
  the end of September 2003,
• Supporting the PIU (the estimated cost are about
  Le 2.9 billion)
• Supporting other local cost (estimated at about
  Le 3.4 billion)

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Closing the financing gap

• The AfDB/GOI/WB mission estimated the financing
  gap in foreign cost at about US 7.76 million
• for the local costs, the financing gap is about
  Le 17.96 billion (equivalent to some US 7.49
  million)
• the total financing gap is about US 15.25
  million

Government requests donors to assist in closing
the financing gap
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Schedule for completing the BHP

• Settlement of outstanding bills/claims

mid October 2003

• Project condition assessment

mid October - November 2003

• Negotiation of Contract amendments

December 2003

• Commencement of Implementation

January 2004

• Undertaking environmental, resettlement other
  studies

December 2003/ April 2004
December 2005

• Completion of BHP