ON-LINE BUSINESS NEWSLETTERA new web-based publication to keep H&D Susbribers fully up to date with emerging

projects, in between regular issues of the bi-monthly Journal

April 2015

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While Norway, one of Europe’s principal pioneering countries forhydropower development, has limited remaining potential for

future large-scale development, prospects for small and medium hydro,as well as upgrading existing installations, are significant. The countryalso has the potential to play a very important role in providing flexibilityfor the European grid.

Norway had a total installed capacity of more than 32 879 MW at theend of 2013, according to the 2014 report of NordREG, the Nordic energyregulators, of which 30 900 MW was hydropower (94 per cent), 1040 MW thermal and 811 MW wind. The country also has 1344 MW ofpumped-storage capacity in operation. A further 1008 MW of pumped-storage is planned.

The country has a gross theoretical hydropower potential of 620TWh/year, and a technically and economically feasible potential of 213.8TWh/year. About 60 per cent of the technically feasible potential has beendeveloped so far.

The Ministry of Petroleum and Energy is responsible for the country’senergy policy, as well as management of its water courses. The country’senergy sector is regulated by the Norwegian Water Resources and EnergyDirectorate. The Norwegian Government has committed to introduce13.2 TWh of renewable energy to the European market before 2020.

About 90 per cent of installed capacity is in public ownership.Municipalities and county authorities own about 52 per cent of the coun-try’s generating capacity, often jointly by several municipalities in theregion. A number of companies have more than one owner, and cross-ownership is common.

The state-owned Statkraft is by far the largest power producer, with aninstalled capacity of 12 518 MW as of end-2013, representing around 38per cent of the country’s total installed capacity. The company is theNordic region’s third largest power producer and Europe’s largest pro-ducer of renewable energy.

There are around 160 distribution system operators in Norway, mainlypublicly owned, and some 30 suppliers operating nationwide, account-ing for 30 per cent of total retail supply. The state-owned transmissionsystem operator is Statnett.

In January 2013, Norway recorded new production and consumptionrecords of 26 075 MW and 24 180 MW, respectively. The peak load lev-els are approximately 30 per cent below the nominal generation capacity.Average base load is about 14 624 MW.

Average monthly retail prices range between €0.0502/kWh and€0.0356/kWh.

Norway has 345 large dams, mostly built for hydropower, and about 2500dams more than 4 m high. The total storage volume of all the country’sdams is about 62 km3. There are 180 embankment dams and 150 concretedams.

There is about 500 MW of hydropower under construction, A total of1116 MW of hydropower capacity has been licensed, but construction hasnot started, according to NordREG’s 2014 annual report.

The focus of new developments is now on small hydro projects andupgrading and expanding existing plants. New dam safety assessmentswere introduced in 1995 and since then, 59 per cent of all large dams havebeen reassessed, and 26 per cent have been rehabilitated or upgraded.With many plants now approaching 45 years of operation (one plant wasbuilt in 1890), Statkraft is investing NOK 12 billion (US$ 1.95 billion) toupgrade existing schemes.

Statkraft estimates that the annual maintenance budget, which includesprojects with a budget of less than NOK 300 million (US$ 48.8 million),will increase almost 40 per cent by 2016. From next year (2016) to 2020,the costs will total around NOK 1.25 billion (US$ 158 million) per yearin Norway. Additional generation of 6 TWh/year is expected to beacheived as a result of upgrade and extension projects.

Small hydro in Norway is defined as being under 10 MW and the coun-try has a small hydro potential of about 22 TWh/year. There are about1141 small hydro plants in operation, with a combined installed capacityof 2163 MW (9014 GWh/year). There are 40 further projects currentlyunder construction, with a combined capacity of 130.6 MW and projectedaverage annual output of 405 GWh (869 GWh/year). 234 new smallhydro projects were commissioned between 2001 and 2010. The actualnumbers of projects in subsequent years were 34 in 2011, 41 in 2012, 25in 2013 and 27 in 2014. During the same period, an additional 397 proj-ects with less than 1 MW of installed capacity were commissioned.

To facilitate new renewable energy, as well as an anticipated Nordicpower surplus, and to ensure security of supply in dry years, necessary toincrease the power exchange capacity with power systems outside theNordic region, Norway is seeking to construct two subsea transmissionlinks with Germany and the UK. Agreement was reached with key partiesin Germany and the UK for the construction of the international intercon-nectors. The interconnector to Germany is scheduled for completion in2018 and the UK interconnector in 2020.

• The 83rd ICOLD Annual Meeting and 25th Congress will beheld in Stavanger, Norway from 13 to 20 June, 2015. This meetingwill be a major event for the dams, water resources developmentprofession. HydroPower ‘15, organized by ICH, will also takeplace alongside the ICOLD Meetings.

The bi-monthly International Journal on Hydropower & Dams publishes, for its readers in more than 180 countries, research papers,descriptive case studies, project updates, business and financial news, and policy papers aiming to help advance the state-of-the-art of dam

and hydropower engineering and water resources development. As part of our on-going website development, we recently launched this on-line Business Newsletter for subscribers. It is prepared six times a year between issues of the printed Journal, and is uploaded to our

website in PDF format. Emphasis in the news is on projects recently approved, where studies have been completed, or financial closure hasbeen reached, indicating that construction will be moving ahead soon.

The Newsletter also includes updates on our Conferences and Exhibitions and other industry events, as well as a Country Profile, highlighting hydro potential and business opportunities in one of the world’s leading hydropower nations. The country selected for theProfile will reflect the regional focus of the next printed edition of Hydropower & Dams. The Country Profile will showcase some of the

major developments taking place in the region and will include background data from our extensively researched World Atlas.

MISSION

COUNTRY PROFILE: NORWAY

Norway plays a valuable role in promoting public awareness about hydro. Thispicture shows the Norwegian Museum of Hydropower and Industry, at the Tysso1 hydro plant, originally constructed between 1908 and 1918 at the Sør fjord.

Malawi studies Chimgondaand Mpatamanga projects Malawi is planning the construction of twohydro storage projects with a proposed com-bined installed capacity of around 350 MW,as the country moves forward to develop newgeneration capacity to meet growing electric-ity demand.

In March the Ministry of Natural Resources,Energy and Mining invited expressions ofinterest for consulting services to conductseparate Environmental and Social ImpactAssessments (ESIA) for the proposedChimgonda and Mpatamanga hydro projects,and associated transmission lines. The ESIAstudies are expected to take 12 months andwill be conducted in parallel with the techni-cal studies. In December 2014 the Ministrysolicited bids for consulting services to carryout technical and economic feasibility studiesfor the development of the two plants.

Both projects are expected to be developedas IPPs, with single or multiple shareholders,according to an investment report publishedby the Government in late 2014.

The Mpatamanga project, which is plannedto be located in the narrow high-sidedMpatamanga Gorge, in the middle reach ofthe river Shire, downstream of the TedzaniFalls, in the district of Chikhwawa in south-ern Malawi, is planned to have an installedcapacity of 300 MW. The Chimgonda project,on the river Dwambadzi in the NkhotakotaDistrict of the Central region of the country, isplanned to have an installed capacity of 50MW. The project is expected to involve theconstruction of a concrete dam with a power-house to be located either in the Mtazi valley,on a tributary of the river Dwambadzi, or nearChimgonda at the base of the escarpment.

Both sets of studies are to be financed by theWorld Bank, which approved US$ 84.7 mil-lion in funding in June 2011 to assist theGovernment of Malawi with its plans todevelop domestic sources of electricity gener-ation and improve the country’s capacity totransmit electricity to consumers. The EnergySector Support Project, which runs untilOctober 2016, was conceived to finance fea-sibility studies for possible new hydropowerstations, as well as rehabilitate, upgrade andexpand the distribution network. In additionto the proposed Chimgonda and Mpatamangaschemes, the project is to finance feasibilitystudies of the 100 to 175 MW Lower Fufuproject on the South Rukuru river in the dis-trict of Rumphi, northern Malawi.

As of the end of 2014, Malawi had a totalinstalled capacity of 351 MW, but is expectedto require 829 MW in 2020, based on the cur-rent demand growth rate, with demand risingby about 5 per cent a year. Hydropower plantson the rivers Shire and Wovwe supply 95 percent of the country’s electricity but only about7 per cent of the population has access toelectricity, mostly in urban centres.

Nyimur water project plannedin the Nile Basin Uganda and South Sudan, through the NileEquatorial Lakes Subsidiary Action Program

(NELSAP) of the Nile Basin Initiative, haverecently been seeking consultancy servicesfor the Nyimur Multipurpose WaterResources Project in the Aswa river basinshared by the two countries. Feasibility stud-ies and tender design studies, as well as anEnvironmental and Social Impact Ass-essment (ESIA) and development of aResettlement Action Plan (RAP), which willbe funded from the African Water Facility ofthe African Development Bank, are intendedto run concurrently but be carried out inde-pendently. The feasibility studies will estab-lish a basis for feasible irrigated agricultureand natural resources management for thescheme, and are expected to take 24 monthseffective July 2015. The ESIA and RAP areexpected to take 12 months effective fromJanuary 2016.

The project, which envisages the construc-tion of a 26 m-high dam and reservoir on theriver Nyimur and a 350 kW hydropowerplant, is a community-based irrigationscheme, which aims to create five modules ofirrigated lowland rice of about 5105 ha, andalso comprises a water and soil conservationcomponent, including setting up areas in thesub-catchments, where sustainable land usemanagement is practiced as well as afforesta-tion activities for an estimated 14 300 ha.

Jordan studies hydro schemeon the river Zarqa The Ministry of Planning and InternationalCooperation of the Hashemite Kingdom ofJordan is planning to implement a newhydropower plant on the river Zarqa, down-stream from the King Talal dam.

Studies are under way to define the opti-mum development and to assess the technicaland financial feasibility. The studies are to becarried out in two stages: first, a projectinception and study of alternatives will bedone, and this will be followed by a feasibil-ity study of the recommended layout.

The implementing agency is the JordanValley Authority (JVA), the owner-operatorof the 106 m-high King Talal dam, which isabout 40 km north of Amman. The dam wascommissioned in 1978 with a height of 92.5 m,and was subsequently heightened to meetJordan’s increasing water demands. Themain purpose of the dam is irrigation in theJordan Valley, using the waters of the riverZarqa and treated wastewater from Ammanand Zarqa. To harness the available head, a 6 MW hydro plant, equipped with two 3 MWFrancis units, was installed with a rated headof 107 m.

JVA is planning to construct a penstockbetween the dam and the existing irrigationsystem downstream to minimize sedimenta-tion, improve water quality for irrigation, andmake use of the head between the King Talaldam and the Al Dahab diversion weir. Thenew hydropower plant would be installed atthe end of this penstock. From the tailwaterat King Talal dam the river Zarqa dropsapproximately 180 m to the Al Dahab diver-sion weir, located about 13 km downstream.

In addition, reconnaissance studies for theimplementation of hydropower plants at the

existing Mujib, Tannur, and Wadi Arab damsare envisaged.

Hummingbird Resources plansproject in Liberia Hummingbird Resources, a UK-based WestAfrican gold explorer and developer, hassigned a cooperation agreement with IFCInfraVentures and Aldwych International, aUK-based power project developer in sub-Saharan Africa, aimed at developing a 20 to 30 MW hydropower plant in southeasternLiberia. The project aims to reduce operatingcosts for the company’s Dugbe 1 gold proj-ect, through the supply of low-cost power, aswell as providing power for the surroundingregion, in particular the town of Greenville.

A pre-feasibility study is to be conducted byKnight Piésold Consulting to assess the tech-nical and economic feasibility of the project.The study, which is to be carried out in twophases, is expected to be completed by April2016. The first phase will involve prelimi-nary engineering, installation of streamgauge and flow monitoring equipment, and adraft pre-feasibility study report. The secondstage will involve one year of flow raterecording, stream gauge maintenance andhydrological analysis culminating in a finalreport.

The study is to be funded by IFCInfraVentures, for around US$ 265 000.

In February 2014 Knight PiésoldConsulting conducted a desktop study, withpositive results regarding the development ofthe project.

The hydro project is to be sited about 10 kmfrom Dugbe 1, which is within the BirimianBasin, the world’s second largest gold pro-ducing region. Hummingbird Resources iscarrying out optimization of its definitivefeasibility study to evaluate the mining, pro-cessing and power capabilities of the projectwith a view to future production feasibility.

Financial closure forShuakhevi in Georgia Adjaristsqali Georgia, a joint venture projectcompany between India’s Tata Power andNorway’s Clean Energy Invest, has closedfinancing for the 187 MW Shuakhevi hydroscheme in southwestern Georgia. TheInternational Finance Corporation (IFC), theAsian Development Bank (ADB) and theEuropean Bank for Reconstruction andDevelopment (EBRD) announced in lateMarch that they had provided US$ 250 mil-lion in debt financing for the project, repre-senting the largest ever private hydropowerinvestment in Georgia. The financingarranged by IFC consists of two US$ 90 mil-lion long-term senior loans from the ADBand the EBRD, and US$ 70 million from theIFC. Some US$ 15 million of ADB’s loanwill be provided by the Canadian ClimateFund for the Private Sector in Asia, fundedby the Government of Canada and adminis-tered by ADB. IFC’s total investment is US$ 104 million, which includes a US$ 34million equity investment for a 20 per centstake in the project company, through IFC

InfraVentures. Tata Power and Clean EnergyInvest each hold 40 per cent stakes inAdjaristsqali Georgia.

Construction of the Shuakhevi project,which will comprise the 178 MW Shuakheviand 5.8 MW Skhalta plants, began in October2013 and is scheduled to be completed byJuly 2016 at an estimated cost of US$ 416million (US$ 367 million excluding financ-ing costs). The project is the first hydro proj-ect in Georgia to be certified by the UNFramework Convention on Climate Changefor carbon emission reductions. The Shua-khevi project is the first in a series of run-of-river plants with a possible total installedcapacity of around 400 MW to be developedas a cascade on the river Adjaristsqali, and itstributaries in the southwestern region ofAdjara.

The Shuakhevi project is the second pri-vately owned hydro project in Georgia to beco-financed by the IFC and the third by theEBRD. The EBRD and the IFC providedloans of US$ 52 million and US$ 41 million,respectively, for the 85 MW, US$ 180 millionParavani run-of-river plant, which was devel-oped under a BOT concession by Turkey’sAnadolu Endustri Holding, and commis-sioned in October 2014 (see H&D Issue Six,2014). The EBRD also arranged a US$ 80million syndicated loan to Dariali Energy, alocal majority privately owned joint venturefor the development of the 108 MW Darialirun-of-river project. Both these projects andthe Shuakhevi scheme will supply electricityto the Georgian grid during winter, but arepredicated on the export of electricity toneighbouring Turkey, utilizing the Black Seatransmission line, which was co-financed bythe EBRD.

“It is particularly fulfilling to see privateinvestment in energy generation projectsstimulated by EBRD’s initial investment inthe Georgia-Turkey cross-border transmis-sion line,” said Nandita Parshad, EBRDDirector for Power and Energy. “This projectdemonstrates that non-recourse cross-borderfinancing is available for greenfield hydroprojects in Georgia, and will be important forthe development of the sector and Georgia,”commented Baard Mikkelsen, Chairman ofClean Energy. “The project will promoteregional cooperation and generate additionalrevenues for Georgia through energy trade,”added Michael Barrow, ADB DeputyDirector General for Private SectorOperations Department. Wiebke Schloemer,IFC Regional Industry Head of Infrastructurein Europe, Middle East and North Africa,said: “The Shuakhevi project is expected tostrengthen investor confidence in Georgiaand stimulate more private sector investmentin the sector”.

Funding for Cañaveral-RíoLindo upgrade in Honduras The Japan International Cooperation Agency(JICA) and the Inter-American DevelopmentBank (IDB) have approved funding totallingUS$ 158.4 million to the Government ofHonduras to overhaul and upgrade the 109MW Cañaveral-Río Lindo hydropower

scheme. JICA and the IDB are to provideloans of ¥ 16 billion (US$ 135.4 million) andUS$ 23 million, respectively, under agree-ments signed on 26 March betweenHonduran Minister of Finance, WilfredoCerrato Rodríguez, the President of JICA,Akihiko Tanaka, and the President of theIDB, Luis Alberto Moreno, during the IDB-IIC annual meetings held in Busan in theRepublic of Korea. The funding is beingawarded under the Co-Financing RenewableEnergy and Energy Efficiency Projects(CORE), established between the IDB andJICA in 2012.

The funding, which is to be on-lent by theGovernment to state-owned power producerEmpresa Nacional de Energía Eléctrica(ENEE), will cover the upgrading of the 29 MW Cañaveral (2 ¥ 14.5 MW) and 80 MW Río Lindo (4 ¥ 20 MW) run-of-riverplants in the northwestern region of Cortésand their transmission links to the centralgrid, at a total projected cost of US$ 167.2million. JICA’s loan will cover the procure-ment of four turbines and generators for theRío Lindo powerplant, two new turbines forthe Cañaveral facility, associated civil works,and consulting services.

The IDB’s loan will cover improvements tothe plants’ substations, including the supplyof breakers, transformers, and auxiliaryequipment, as well as to improve the opera-tional and commercial efficiency of genera-tion management at ENEE. The balance ofthe cost will be funded by the Government.

The rehabilitation of the Río Lindo andCañaveral plants, which are the second andthird largest plants in the country, represent-ing approximately 35 per cent of its totalnational hydropower generation, and 10 percent of the overall national electricity supply,is a priority for Honduras, taking into accounttheir roles as key sources of stable and renew-able baseload power for the country. Theimportance of ensuring the full availability ofthe plants is all the more critical given thecountry’s installed capacity deficit at a timewhen electricity demand is currently rising byan average of 2.5 per cent per year. “This

hydroelectric complex is vital for energy gen-eration and the operation of the NationalInterconnection System (SIN) and its syn-chronization with the Central AmericanElectrical Generation System, producing withthe lowest generating cost in the country,”said IDB Project Leader, Carlos Jacome.

Commissioned in 1971-78 and 1964,respectively, and without major maintenancesince 1993, the equipment at Río Lindo andCañaveral is showing signs of fatigue, andENEE is having increasing difficulty inobtaining spare parts, according to JICA. Theupgrading project aims to extend the plants’lifetimes by at least 30 years, ensuring thesupply of at least 10 per cent of the country’spower demand at a lower cost. Installedcapacity at the two plants will be increasedby 20.8 MW, 3.2 MW at Cañaveral and 17.6 MW at Río Lindo, and turbine efficien-cy by around 2 per cent. Annual productionat the plants of 177 GWh and 544 GWh,respectively, is expected to remainunchanged.

According to the IDB and JICA, the rehabil-itation project is currently scheduled to becompleted in August 2021. JICA said that itexpects to invite bids for consulting services,which includes support for basic design, ten-dering assistance and support for implementa-tion, in May 2015, and to issue an internation-al tender for the main equipment in December.

The Cañaveral-Río Lindo cascade has a nat-ural reservoir in Lake Yojoa, which is regulat-ed by two dams. The Varsovia dam, a 7 m-high, 20 m-long earthfill embankment with aconcrete spillway, diverts water from the riverVarsovia to the lake. Another earthfillembankment, La-Pita dam, also 7 m high,controls the lake’s water level. When the waterlevel of Lake Yojoa exceeds el. 637.5, waterspills from La-Pita dam into the Varsovia.

Pacific Hydro submits EIA forNido de Águilas The renewable energy developer PacificHydro of Australia announced in late Marchthat it had submitted an Environmental

The 109 MW Cañaveral-Río Lindo scheme is soon to be upgraded in Honduras.

Impact Assessment (EIA) for the Nido deÁguilas run-of-river hydro project in theO’Higgins region of central Chile. The con-struction of the 125 MW project, in theUpper Cachapoal Valley, is expected to costUS$ 280 million, and is expected to beginoperation around 2021 if the EIA isapproved and based on the estimated timerequired for permitting, financing, and con-struction. Pacific Hydro said that it estimat-ed that the environmental permittingprocess would take between 12 and 18months, after which it would call tenders forthe civil works and seek financing.Construction work is anticipated to takearound 46 months.

The project is designed to harness the flowsof the river Cortaderal, to generate an aver-age annual output of 462 GWh. PacificHydro said: “Nido de Águilas represents aproject with sustainable improvements andoptimization of an EIA previously submittedin 2010 and which was withdrawn in 2012”.

The company said it had held consulta-tions with the communities of the Alto(Upper) Cachapoal Valley, allowing it toimplement improvements and adjust miti-gation measures in the new EIA. “Our pres-ence in the valley for more than ten yearsand the experience of having developed andbuilt the Chacayes hydro plant was key inthis regard, and allowed us to strengthenthis project after optimization economical-ly, socially and environmentally,” saidAlfredo Zañartu, Chief Commercial andDevelopment Manager at Pacific HydroChile. “The project will take advantage ofexisting infrastructure built for theChacayes facility, and will be developedwith a view to creating a sustainable long-term watershed,” he added.

Nido de Águilas would be the second proj-ect to be developed by Pacific Hydro in theCachapoal Valley, following the commis-sioning in October 2011 of the 111 MWChacayes run-of-river plant. Italian con-struction company, Astaldi, which builtChacayes under an Engineering, Procure-ment and Construction (EPC) contract,holds a 27.3 per cent stake in the plant.Pacific Hydro secured the rights to buildand operate up to 600 MW of hydropowercapacity in the Cachapoal river basin, aspart of its acquisition of the Coya andPangal hydro plants in 2004 from state-owned copper producer CODELCO.

Tata Power agrees share dealfor Itezhi Tezhi Tata Power, India’s largest integrated powerutility, announced on 25 March that it hadentered into a share purchase agreement withTata Africa Holdings, the African develop-ment arm of the Tata Group, to formalize theacquisition of its 50 per cent shareholding inItezhi Tezhi Power Corporation (ITPC), thedeveloper of the first public-private partner-ship in Zambia’s energy sector. ITPC, a 50-50 joint venture with the Zambian state-owned power utility ZESCO, is a special pur-pose vehicle, which was set up in 2007 tobuild and operate the 120 MW Itezhi Tezhi

station on the river Kafue in southern Zambiaunder a 25-year concession. ITPC has a 25-year PPA with ZESCO at a fixed rate of US$0.0851/kWh.

Construction of the surface power stationadjacent to the existing dam began in 2011and is scheduled for completion in the fourthquarter of 2015. The plant is being construct-ed by China’s Sinohydro under an engineer-ing, procurement and construction (EPC)contract, and will feature two 60 MW Kaplanturbines that are being supplied by Alstom.The plant will cost an estimated US$ 239million on a 70/30 per cent debt-to-equityratio. The African Development Bank(AfDB) and the European Investment Bank(EIB) have each lent US$ 17.8 million tohelp ZESCO cover its US$ 35.86 millionshare of the US$ 71.7 million in equity withTata Africa. Debt financing totalling US$142 million was provided by the AfDB, theDutch Development Bank FMO, theDevelopment Bank of Southern Africa(DBSA) and Proparco, a subsidiary of theAgence Française de Développement (AFD),to the Zambian Government for on-lendingto ZESCO, in April 2014 (see H&D IssueThree, 2014). India’s Exim Bank also provid-ed subordinated debt of US$ 50 million forthe electro-mechanical equipment to be sup-plied by Alstom India.

Further financing has been supplied by theAfDB (US$ 35.9 million), the EIB (US$ 34million) and AFD (US$ 34 million) for theconstruction of the associated transmissionlines at an estimated cost of US$ 111.36 mil-lion.

Transmission lines will convey power fromthe plant to a new substation at Mumbwathrough a 142 km, 220 kV single-circuit lineand from Mumbwa to the Lusaka West sub-station through a 134 km, 330 kV double-cir-cuit line.

The 62 m-high, 1800 m-long Itezhi Tezhidam was built between 1974 and 1977 tostore water for the downstream 900 MWKafue Gorge Upper plant.

EGP targets Asia-Pacific withMarubeni Enel Green Power (EGP) has teamed up withJapanese trading group Marubeni Corp-

oration to cooperate in evaluating potentialbusiness opportunities in renewable projects,including hydropower, mainly in the Asia-Pacific Region. EGP announced on 1 Aprilthe signing of a two-year MoU withMarubeni to study opportunities jointly todevelop hydro, geothermal, wind, and solarprojects in The Philippines, Thailand, India,Indonesia, Vietnam, Malaysia and Australia.Other geographic areas may be considered ata later stage. Projects under construction andoperating assets are not included in the scopeof the cooperation.

The MoU is expected to be implementedthrough development agreements aimed atestablishing the structure of the projects.Under each agreement, EGP and Marubeniwill establish a joint venture to build, ownand operate the relevant projects, in whichEGP will hold a controlling stake. Under theMoU, EGP and Marubeni will also establisha joint working group to exchange informa-tion and data regularly on project opportuni-ties.

“The Asia-Pacific Region is promising forEnel Green Power, as we do not have anoperational presence there yet, and throughthis agreement we are venturing into devel-opment opportunities across all renewabletechnologies in this area abundant withresources and growth potential,” commentedFrancesco Venturini, CEO and GeneralManager of EGP. “We are looking forward tooperating in one of the fastest-growingregions in the world with our strong expertiseand experience, also benefitting from thetechnological edge and business network ofsuch a strong Asian partner.”

Enel Green Power owns and operates about740 wind, solar, hydroelectric, geothermaland biomass plants, with an installed capaci-ty of approximately 9600 MW in 15 coun-tries in Europe, the Americas and Africa.

Georgian fund agrees Nenskraproject with K-Water Georgia’s state-owned Partnership Fund (PF)announced on 19 March the signing of anagreement with Korea Water ResourcesCorporation (K-Water) on the main condi-tions for the implementation of the 280 MWNenskra storage hydropower project in the

Construction of the 120 MW power station at the Itezhi Tezhi scheme in Zambia will be completed later this year.

northwestern region of Upper Svaneti,Georgia, as well as the purchase of the plant’soutput during the winter months.

The project, on the Nenskra, the largesttributary of the river Inguri, is to be built,owned and operated by the state-run assetmanagement and investment fund in partner-ship with K-Water.

Construction of the project should be com-pleted by 2021 at an estimated cost of US$ 1billion. PF has said that it expects to select acontractor to build the project in May, afterreceiving seven bids from experiencedhydropower plant construction groups,including companies from Italy, Spain, Koreaand Turkey.

Both the cost and the capacity of the proj-ect, originally US$ 570 million and 210 MW,respectively, were increased during the nego-tiations. The plant is expected to produceaverage annual output of 1.2 TWh, with 30per cent of total production to be supplied tothe domestic grid during the six wintermonths of October to March, with the rest tobe exported to Turkey.

The project was initially conceived in 2009,culminating in a pre-feasibility study inMarch 2010, and a detailed feasibility studyproduced by Stucky of Switzerland in May2011. The preliminary environmental studieswere carried out during the feasibility study.

The project is expected to comprise a 135m-high, asphalt-core rockfill dam on theupper Nenskra, creating live storage of about182 ¥ 106 m3.

The IFC acted as project consultant andprovided advisory services to PF.

PF attracts and supports private sectorinvestment in key sectors of the economy byproviding co-financing at an initial stage ofdevelopment, and helps secure senior financ-ing from commercial sources or IFIs. It wasestablished in 2011 to consolidate the owner-ship of Georgia’s key national infrastructurecorporations.

IFC to help develop Nyagak IIIin Uganda The International Finance Corporation (IFC)is to provide transaction advice to theUganda Electricity Generating Company Ltd(UEGCL) to attract private investment todevelop the 4.3 MW Nyagak III hydro plantin the West Nile Region of Uganda. The IFCannounced in March that it will conduct tech-nical, legal, environmental and social duediligence, and provide recommendations on atransaction structure that is appropriate forattracting a private sector partner. If UEGCLdecides to proceed with the transaction, IFC

will also assist UEGCL in marketing theopportunity and selecting an appropriatepartner.

The run-of-river project, on the riverNyagak, in Zombo District in northwesternUganda, is to be developed as a PublicPrivate Partnership with UEGCL, the state-owned power producer. In June 2013,UEGCL invited bids for a private partner,who, as majority shareholder in the projectcompany, would be required to design, con-struct, finance, operate and maintain NyagakIII over the 20-year period of the PPA.UEGCL, which will hold a 30 per cent stakein the project owner-operator, will be the des-ignated power offtaker. In September 2010,an Environmental Impact Assessment studywas concluded by Lahmeyer International ofGermany.

It is one of three run-of-river projects to bedeveloped on the river Nyagak near the townof Paidha, under the Efficient andSustainable Energy Supply in Uganda pro-gramme developed by the Government ofUganda through the Ministry of Energy andMineral Development, with the support ofthe German Government. The GermanyGovernment, through KfW, has provided agrant of €8 million towards the developmentcost of the project.

Nyagak III is to be developed downstreamof the existing 3.5 MW Nyagak I run-of-riverstation, which was commissioned inSeptember 2012. Nyagak I was developedunder a 20-year BOT concession by WestNile Rural Electrification Company (WEN-RECO), a subsidiary of Industrial PromotionServices, the infrastructure and industrialdevelopment arm of the Aga Khan Fund forEconomic Development, with financial sup-port from the World Bank and KfW. TheGovernment of Uganda, with the support ofthe World Bank and KfW, has been continu-ing with plans for both Nyagak III and the 5MW Nyagak II scheme, which is currentlyplanned to be developed by UEGCL, to meetthe electricity needs of the West Nile sub-region of Uganda. In addition, the towns ofAruu and Mahagi, across the border in DRC,expressed their desire to be supplied withelectricity from the neighbouring region inUganda.

The West Nile sub-region is not connectedto the national grid, and is unlikely to be con-nected until the planned 600 MW Karumahydropower station comes online in 2018. Atpresent the power generated by Nyagak I isdelivered to the local population in the townsof Paidha, Nebbi, Bondo, Okollo and Aruathrough the existing 33 kV transmissionlines.

USTDA funds study of Malawirun-of-river project The US Trade and Development Agency(USTDA) announced in late March that ithad awarded a grant to the Ministry ofNatural Resources, Energy and Mining ofMalawi to fund a feasibility study for a hydroproject on the river Luweya. The feasibilitystudy, for a 15 MW run-of-river scheme inthe Nkhata Bay District of Malawi’s northernregion, will be carried out by Water WheelInternational, a US hydropower developerbased in Texas. The project could be expand-ed in a second phase to 35 MW, using WaterWheel International’s patented system, thecompany has said.

The project supports the objectives ofPower Africa, a US government-led initia-tive to increase electricity access acrossAfrica, as well as those of the MillenniumChallenge Corporation, a bilateral US for-eign aid agency established by the USCongress in 2004. “The project will benefitfrom, and expand upon, the MillenniumChallenge Corporation’s infrastructuredevelopment and power sector reform proj-ects, which are improving the availability,reliability and quality of Malawi’s electricpower supply,” said US Chargé d’Affaires,Michael Gonzales, at the grant signing ceremony.

OFID funding for small hydroin Armenia The OPEC Fund for InternationalDevelopment (OFID) announced on 1 Aprilthat it had agreed to provide a US$ 10 mil-lion loan to Armenia’s Ardshinbank, to beused for on-lending to small and medium-sized enterprises involved in the construc-tion and operation of small-scale hydropow-er. The loan agreement was signed by OFIDDirector General, Suleiman J. Al-Herbish,and the CEO of Ardshinbank, MherGrigoryan.

Ardshinbank, the third largest bank inArmenia, is pursuing commercially feasiblesmall hydro projects to support Armenia’ssocio-economic development, according toGrigoryan. “Small hydropower plants con-tribute to broadening access to energythroughout the country and serve as catalystsin stimulating job creation and income gener-ation for socially vulnerable groups of thepopulation,” Grigoryan said at the signingceremony. The Bank’s loan portfolio to enti-ties involved in building and operating smallhydro plants represents a 33 per cent share ofall such sector lending.

BID INFORMATIONWAPDA extends bidding forDasu I civil works Water and Power Development Authority(WAPDA) of Pakistan has extended the bid

deadline for prequalification applications fortwo major civil works contracts for the 2160MW Dasu hydropower project. Bids shouldnow be submitted by 28 April for the supplyof the main hydraulic structure, spillway, low

level outlets, river diversions and hydraulicsteel structures (ICB-DASU-MW-01) and forthe construction of the underground powercomplex, tunnels and hydraulic steel struc-tures (ICB-DASU-MW-02).

The Dasu Hydropower Stage-I project(DHP-I) is a run-of-river scheme on the Indusriver, about 240 km upstream from theTarbela dam, close to Dasu in Kohistan dis-trict. The World Bank approved in June 2014a financing package from the InternationalDevelopment Association (IDA), comprisingan IDA credit of US$ 588.4 million and aPartial Credit Guarantee (PCG) of US$ 460million to help mobilize commercial financ-ing for the project (see H&D Issue Four,2014). The majority of the funds from theIDA credit are to be used for the preparatoryworks, environmental and social managementplans and project monitoring and supervision.

WAPDA and the Government of Pakistanintend to finance these contracts throughcommercial sources, with credit enhance-ments to be provided by the Government ofPakistan and the World Bank’s Partial CreditGuarantees (PCGs). The qualified applicantswill be expected to mobilize the requiredfinancing at the bidding stage. For such com-mercial financing, the applicant or financialinstitutions (working with the applicant tofinance these contracts) may ask WAPDA toprovide credit enhancement, such as govern-ment guarantees or World Bank PCGs. Moreinformation on World Bank PCGs would beprovided in the prequalification package.

Prequalification will be conducted throughthe prequalification procedure specified in theWorld Bank’s Guidelines ‘Procurement ofGoods, Works, and Non-Consulting Services’under ‘IBRD loans and IDA credits andgrants by World Bank borrowers - January2011’ and is open to all applicants from eligi-ble source countries, as defined in the guide-lines.

Interested eligible firms and joint venturescan obtain further information and inspect theprequalification document at the address givenbelow. The full tender notices and addenda areavailable for viewing on the websites ofWAPDA, PPRA and the World Bank atwww.wapda.gov.pk, www.ppra.org.pk and/orwww.worldbank.org. A complete set of pre-qualification documents in English may bepurchased on submission of a written applica-tion and upon payment of a non-refundablefee of Pak Rs 20 000 or US$ 200 for mailingwithin Pakistan or Pak Rs 30 000 or US$ 300for mailing to an address outside Pakistan.The payment shall be made through a bankorder or demand draft in favour of theGeneral Manager, Dasu HPP, WAPDA,Sunny View Estate, Kashmir Road, Lahore,Pakistan. Applications for prequalificationshould be submitted in sealed envelopes,clearly marked: ‘Application to prequalify forDasu hydropower project DASU-MW-01 orDASU-MW-02’ and delivered to the addressgiven below by 11.00 hrs local time on 28April. Only prequalified firms and joint ven-tures will be invited to bid.For further information, contact: General Manager, Dasu HPP project, Water and Power Development Authority5th floor, Al-Malik Plaza, Davis Road, Lahore, Pakistan Tel: +92 42 99202676 Fax: +92 42 99202667Email: dasuhpp@yahoo.com

Consultancy services forKurichhu expansion project Druk Green Power Corporation (DGPC),Bhutan’s state hydropower producer, hasinvited bids by 30 April for consultancy serv-ices for the design and engineering of theextension of the 60 MW Kurichhu hydroplant. The project envisages the installationof an additional powerplant on the right bankof the existing dam and powerplant inMongar Dzongkhag, eastern Bhutan, entail-ing the construction of an intake and pen-stock system, a surface powerhouse and atailrace. The existing facility, which uses thewater of the Kurichhu, a tributary of the riverDrangmechhu, includes a 55 m-high concretegravity dam and a surface powerhouse,equipped with four 15 MW units at the toe ofthe dam. The four units of the run-of-riverscheme were commissioned between 2001and 2002, and produce on average 400GWh/year, mainly for export to India.

The contract will require a review and val-idation of the topographical survey andmapping, hydrological and sedimentationstudies, geological and geotechnicalappraisal and power potential studies thathave been carried out or are being undertak-en by DGPC, as well as the project layoutand optimization studies, design and engi-neering of the civil works, electro-mechani-cal and hydro-mechanical equipment, con-struction methodology, equipment planningand project scheduling and project cost esti-mates, in close association with DGPC. Aninception report is to be submitted onemonth after the signing of the contract, witha draft report due by 31 October 2015 and afinal report by 15 November 2015. The fullscope of work is detailed in the terms of ref-erence of the Request for Proposals.

Detailed specifications and terms of refer-ence are detailed in the bidding documents.The tender notice and bidding documents canbe viewed and downloaded free of chargefrom DGPC’s website at www.drukgreen.bt.Gorab Dorji, Head of DGPC’s projectsdepartmentTel.: +975 2 336877; Email: g.dorji2248@drukgreen.bt.

A pre-proposal meeting will be held at theConference Hall, Corporate Office of DGPCin Thimpu on 13 April.

Bidders must submit the original and onecopy of the technical proposal and the origi-nal of the financial proposal by 14.00 hrslocal time on 30 April to: Head P&DD, Projects Department, Druk Green Power Corporation Ltd, PO Box No. 1351, Motithang, Thimphu, Bhutan; Tel: +975 2 336877

Georgia invites bids to buildand operate three run-of-riverprojects Georgia’s Ministry of Energy invites bids forthe rights to build and operate three run-of-river plants, with a combined installed capac-ity of around 78 MW in the northwesternregion of Samegrelo–Zemo Svaneti.

Expressions of interest are invited by 15 Mayfor the 37.4 MW Khumpreri project on theriver Khumpreri, and a two-plant cascadetotalling 40.6 MW on the rivers Skurchali andMagana, comprising the 20.6 MW Maganaand 20 MW Lekarde stations.

The formal invitation for bids follows thesubmission of applications for the Khumpreriproject and the Magana and Lekarde cascadefrom local developers Geo Hydro CapitalGroup and Hydro Development Company,respectively, according to a ministry decreeissued on 20 March.

Khumpreri is expected to cost US$ 42.59million and will produce average output of153.3 GWh/year. The Magana and Lekardecascade is estimated to cost US$ 73.1 millionand to produce average annual output of 213.4 GWh.

The winning bidders in the two tenders willbe decided on the basis of the lowest proposedprice at which output will be sold to the coun-try’s Electricity System Commercial Operator,and must not exceed the maximum sellingprice fixed by the Ministry of US$0.055/kWh. Under the terms of the tender, thefuture concessionaire must sell 20 per cent oftotal annual output during the months fromOctober to March for a period of 10 years,starting from the date of commercial serviceof the plant to JSC Electricity SystemCommercial Operator in accordance with thepower purchase agreement.

The winners of the tenders are obliged tosign a Memorandum of Understanding regard-ing the implementation of the project with theGovernment of Georgia and JSC ElectricitySystem Commercial Operator, within 120days from the announcement of the winner. Inaddition, each investor is required to completeand present for public consultation a feasibili-ty study and an Environmental and SocialImpact Assessment for the project within 12months of the signing of the MoU. It is alsorequired to secure land rights for the projectand obtain a construction permit.

Construction work should begin within sixmonths of taking an investment decision.

The tender documentation is available on theMinistry’s website at www.energy.gov.ge.

Interested parties should submit expressionsof interest by 18:00 hrs local time on 15 Mayto:Ministry of Energy of Georgia4th floor, 2 Sanapiro StreetTbilisi, Georgia. For further information, contact: Ms Liza Tavdumadze Head of the Investment Projects Dept Ministry of Energy2 Sanapiro Street, Tbilisi, Georgia. Tel: +995 32 2357825Email: L.Tavdumadze@menr.gov.ge

Consultancy services soughtfor Búrfell extension inIceland Landsvirkjun, Iceland’s state-owned powerproducer, has invited bids by 28 April forengineering consultancy services for the

extension of the Búrfell hydro station in thesouth of the island. The contract will com-prise detailed design and design review, ten-der design, procurement services, cost esti-mate and work scheduling and assistanceduring construction, with the consultancyservices to be carried out between June 2015and the end of 2018.

The company aims to increase the installedcapacity at the 270 MW station by 100 MW,with the installation of a single unit in theunderground powerhouse.

The Búrfell run-of-river plant, which islocated near the head of the ThjórsárdalurValley, was commissioned in 1972. All sixvertical Francis turbines were upgradedbetween 1997 and 1998, boosting the plant’sinstalled capacity from 210 MW to 270 MW.Trashracks and intake gate equipment wererenovated between 1996 and 2003. The plantproduces average annual output of 2300GWh, under a gross head of 115 m, with theflow of the river Thjórsá diverted into theBjarnarlón reservoir and from there to theThjórsárdalur valley through a 1564 m-long,10 m-wide headrace tunnel to the power-house. The water is released through the drafttubes and a short canal to the river Fossá,which joins the river Thjórsá, 2 km down-stream.

The tender notice for contract No. 20188,which was issued on 18 March, can beviewed at http://utbod.lv.is/is/ or on the EU’sprocurement website. Tender documents orinformation can be requested until 27 April.

Bids should be submitted, by 12.00 hrs on28 April 2015 to the address below, fromwhich further information can also beobtained. Attn: Bjarni Jakob Gíslason Landsvirkjun, Háaleitisbraut 68 103 Reykjavik, Iceland.Tel: +354 5159000 Fax: +354 5159006Email: innkaup@lv.isWebsite: www.landsvirkjun.is.

EPS seeks bids to reconstructsmall hydro plants in easternSerbia Serbia’s state-owned power utility Elektro-privreda Srbije (EPS) seeks bids by 24 Julyfor the supply and installation of electricaland mechanical equipment for the recon-struction of seven small hydro plants in east-ern Serbia. The European Bank forReconstruction and Development (EBRD)has provided a loan to EPS towards the costof the reconstruction of a total of 15 hydroplants in the country, including the sevencovered by this tender, as well as the con-struction of two other schemes at existingdams, which is estimated at about €50 mil-lion (US$ 67 million). A general procurementnotice for the project was issued in July2014. EPS will seek the supply of electro-mechanical equipment and civil works inthree groups of tenders, covering west, eastand central Serbia.

Sealed tenders are invited from contractorsfor Lot 3, covering the supply and installa-tion of electrical and mechanical equipment

for the following seven small hydropowerplants, which are owned and operated byEPS. The plants are:• Sveta Petka, near the city of Nis, involvingthe refurbishment of the three existing tur-bines; • Sicevo, near Nis, entailing the installationof two new turbines; • Gamzigrad, near Zajecar, involving therefurbishment of two existing turbines; • Sokolovica, near Zajecar, requiring thereplacement of three existing turbines; • Vucje, near Leskovac, involving the instal-lation of one new turbine; • Jelasnica, near Surdulica, requiring thereconstruction of two existing turbines; and, • Temac, near Pirot, where the three existingturbines are to be upgraded.

Procurement also includes reconstruction ormodification of auxiliary equipment such asgates, valves, transformers, cranes, pen-stocks, and governing and control systems.Detailed descriptions of the scope of workfor each small plant are provided in VolumeIII of the tender documents.

Tendering for contracts, to be financed withthe proceeds of a loan from the EBRD, isopen to firms from all countries. Tender doc-uments may be obtained from the addressbelow on payment of a non-refundable fee of€500 to the account of Javno preduzećeElektroprivreda Srbije, 11000 Beograd,Carice Milice 2, held at Banca Intesa Ad,Belgrade, Milentija Popovića 7B, RepublikaSrbija; SWIFT: DBDBRSBG. Beneficiary:Elektroprivreda Srbije JP Beograd IBAN:RS35160005030000152939; Intermediary:BCITITMM Intesa Sanpaolo SpA, Milan,Italy. A note should be added stating:‘Payment for purchase of tender documents- Reconstruction of seven small hydropowerplants’.

Tenderers from the Republic of Serbia mayobtain the tender documents on payment of anon-refundable fee of RS Dinar 50 000, tothe account of JP EPS No.160-700-13 heldwith Banca Intesa AD, Belgrade.For further information, contact: Nebojša Aleksić Project DirectorDepartment for Renewable Energy SourcesJavno Preduzeće Elektroprivreda Srbije Office 1113, St. Balkanska 11000 Belgrade, SerbiaTel: +381 11 3952 540Fax: +381 11 3972 967 Email: nebojsa.aleksic@eps.rs

Bids sought to replace cablesat Toktogul Kyrgyzstan’s state power producer, ElectricPower Plants (EPP) invites bids by 22 Junefor the replacement of high voltage cables atthe 1200 MW Toktogul hydropower planton the Naryn river, in the western provinceof Jalal-Abad, as part of the electrical com-ponents, electrical auxiliaries and instru-mentation contract. The contract is to befinanced by the Asian Development Bank(ADB), which in December last year

announced it would provide financingtotalling US$ 110 million to theGovernment of Kyrgyzstan to upgrade theplant, including replacement of two of theplant’s four 300 MW units, increasing unitcapacity to 360 MW, and refurbishing asso-ciated equipment and structures at the powerplant.

The contract, which is open to bidders fromeligible source countries of the ADB, mainlyincludes replacement of the plant’s 500 kVcables, including design, manufacturing,delivery, installation, testing, commission-ing, and services, on a turnkey basis.

Bidding documents may be purchased onpresentation of a written application to theaddress below, and on payment of a non-refundable fee of US$ 300. The full procure-ment notice, including details of how to pur-chase the bid documents is available onADB’s website.For further information, contact: Electric Power PlantsProjects Implementation Unit Office 525, 326 Jibek Jolu Avenue 720070 BishkekKyrgyzstan Tel: +996 312 67 02 73 Tel/Fax: +996 312 66 20 54Email: ipiu@es.kg

Bids sought to build Muyanzadam in Rwanda Rwanda’s Ministry of Agriculture andAnimal Resources has invited bids by 2 Juneto construct the Muyanza dam in Rulindodistrict, in the country’s Northern Province.The contract to build the 26 m-high irrigationdam is to be financed by the World Bank’sInternational Development Association(IDA) as part of the Land Husbandry, WaterHarvesting and Hillside Irrigation (LWH)Project and the Third Rural Sector SupportProgram (RSSP3).

Interested bidders can access and inspectthe complete set of bidding documents, inEnglish, from the LWH Project Head Officesin Kigali, Rwanda, on payment of a non-refundable fee of Rwandan Francs 20 000 orits equivalent in a freely convertible currencyto the account 1000005254 forMINAGRI/LWH Project, held in the BanqueNationale du Rwanda.

Bids must be submitted to the addressbelow, and addressed to the Coordinator ofthe LWH project on or before 2 June at10.00 hrs local time, and must be accompa-nied by a bid security of Rwandan Francs 50million or its equivalent in a freely convert-ible currency. Bids should clearly indicatethe tender name and number - 269/W/015/LWH.For further information, contact: Jolly DusabeProject Coordinator, LWH ProjectLWH-RSSP Head OfficeMinistry of Agriculture and Animal ResourcesPO Box 6961 Kigali,RwandaTel: +250 727191900 Email: lwh@minagri.gov.rwWebsite: www.lwh-rssp.minagri.gov.rw

Contact details: Aqua~Media International Ltd, PO Box 285, Little Woodcote, Wallington, Surrey SM6 6AN, UKTel: + 44 20 8773 7244 • Fax: + 44 20 8773 7255 • Email: Margaret Bourke: hydro2015@hydropower-dams.com

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