Name of the project and location
Inga II rehabilitation project, Democratic Republic of Congo (DRC).

Project description
The project will involve the rehabilitation of four turbines currently installed at the Inga II Hydroelectric Station on the Congo river in the DRC.

Inga currently consists of two stations, Inga I (six turbines of 52 MW each) and Inga II (8 turbines of 178 MW each), for a total installed potential of 1 174 MW. The present total available generating output for both sites is approximately 500 MW.

The project will allow for the increase of power to Inga II from about 360 MW to 900 MW on completion of works, while ensuring a continuous and reliable energy supply. The Inga site, when fully developed, will represent the world's largest hydroelectric facility.

Plans have been tabled for Inga III (3 500 MW) and an initial stage of the ‘Grand Inga’ (29 000 MW), which is now associated with the Western Power Corridor.

Value
Initial funding for the Inga rehabilitation has been allocated by MagIndustries, while full project funding is under discussion with several investor groups and banks.

Duration
The plan is to have the first energy revenues in 2006 and to have all four turbines, totalling 720 MW, in full production by 2009.

Breakdown of main contracts
MagEnergy is the lead sponsor of the project; Investec Bank is the exclusive lead arranger and Trans Africa Projects (Tap) is the engineering, procurement and construction contractor, and operator of the transmission project. Tap is a 50:50 joint venture between Eskom and Fluor. The Consortium pour le Transport d’Energy will construct a new electrical transmission line to connect Inga with the deep-water port city of Pointe-Noire.

Client
Société Nationale d’Eléctricité (Snel).

Latest developments
MagEnergy has made available an initial $13-million to begin the Phase I refurbishment work at Inga II.

MagEnergy's Phase I financing of $13-million is directed at the refurbishment of turbine G23 and includes $1-million that will be dedicated to rural electrification projects within the DRC.

An additional $10-million facility for emergency repairs to the four operating turbines at Inga II was also approved in 2006. Although MagEnergy is in advanced negotiations with financial institutions interested in participating in the project, the facility at this stage will be entirely funded by equity. It is expected that this emergency work will be completed by March 2007.

The completion of the Phase I refurbishment will lead to Phase II, in which MagEnergy will finance the full rehabilitation of four turbines at an estimated cost of $110-million. The rehabilitation of the first turbine is expected to be completed and on line by the first quarter of 2008.

Participants
MagEnergy, Investec Bank, Tap, Le Consortium pour le Transport d’Energy and the Pool Energétique de l’Afrique Centrale (PEAC). The PEAC is a regional body empowered by its member countries to facilitate cross-border transmission projects.

Franco Tossi (contractor for Phase1).

The IDC currently holds a 15% interest in the project.

Construction materials
Too early to state.

On budget and on time?
Too early to state.

Contact details for project information
MagEnergy vice-president, development, Georges Kyriakos, tel (011) 263 7704 or email gkyriakos@magindustries.com .