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Summit Communications : Could you give
us an outline of Congo's energy-giving resources?
Minister of Energy, Mr. Mwanahembe : Our
country has countless potentials. First
of all, we have the Congo River which has
a navigable stretch of over 2000 kilometers.
It is the next largest river in the world
after the Amazon River, and has a great
number of tributaries and confluents that
link the whole country together. We have
also several waterfalls that provide the
nation with great potentials to develop
electrical energy in order to supply the
entire country and even a great part of
Africa.
We also have forestry resources which constitutes
90% of the African forest. In the Eastern
part, bordering Rwanda, the Lake Kivu abounds
in methane gas. In the Northern part of
Katanga, lays coal, and numerous mineral
resources such as uranium, cobalt and others.
The sun as well as the wind is a source
of abounding energy. In short, all kinds
of possible energies are found in the Congo.
In order to give you an accurate idea, we
have 100,000 MW (megawatts) of hydro-electrical
energy throughout the country, that is to
say 13% of energy resources of the planet.
The 100,000 MW represents the potentials
in terms of electrical energy in the whole
country. Nowadays, the hydro electrical
site of Inga located in the Southeast of
the country can produce 44,000MW, which
adds up to three times the potential energy
of "3 Gorges site" in China, the
biggest site in the world under construction.
We also have oil, the productivity of which
is still very small compared with Angola's
that extracts one million barrels a year.
The Democratic Republic of Congo produces
350,000 barrels and our production is hardly
30,000 barrels. It goes to show only the
coastal production, but there is also oil
found in the central basin and in the east
part of the country towards the borders
with Uganda. Yet, we are seeking partners
for its exploitation.
Summit Communications: How many partnerships
have been established so far?
Minister of Energy, Mr. Mwanahembe: We
are always in search of partners. That is
why the president of the Republic and the
vice-president in charge of finance and
economy has travelled in Asia. Lots of investors
have shown their interest mainly Indian
companies as well as Chinese, American and
Japanese companies are present to exploit
oil.
Summit Communications: Could you give
us an outline us about the geopolitical
size of energy value of the country?
Minister of energy, Mr. Mwanahembe: The
Congo is one the state members of UPDA.
It has been shown that hydro electrical
potentials in Central Africa represent 52%
of the whole continent. Most of the 52%
are concentrated in Inga so much so that
we receive many demands from different countries
that request to be interconnected to 5 business
(commercial) markets of Western Africa called
"Energy Pool". This pool springs
from Inga. Therefore, we are planning to
set interconnections from South Africa via
Angola and Namibia and other one via Zimbabwe
and Botswana. Another connection will be
extended towards Northern Africa: Egypt
through RCA and Sudan. However, we are planning
to build highways of interconnections. Meanwhile
in Kinshasa, we are holding talks with either
UPDA or DAC (Central Africa Energy Pool)
in order to end up concerning international
interconnections real projects.
Summit Communications: What are the
current operating links?
Minister of energy, Mr. Mwanahembe: Presently,
we are interconnected with the Democratic
Republic of Congo, Angola, Zambia, Rwanda
and Burundi through the Ruzizi Dam. Actually,
we are virtually interconnected with all
bordering countries, but we need currently
to strengthen the present connections because
formerly the electrical.
There used to be a relatively small demand,
but now as many factories have grown, these
different countries require a larger quantity
of energy. Furthermore, companies will open
factories in the Democratic Republic of
Congo, Mozambique, South Africa and Angola.
Then, we have to charge cabling sections
or use optical fibres straightforward because
there is an ever increasing demand of our
energy as many factories would like to be
connected to these networks.
Summit Communications: What are the
advantages that are beneficial to the Congo
profit in terms of natural resources in
relation with other countries?
Minister of energy, Mr. Mwanahembe: South
Africa does need our energy because within
two years, it will exceed consumption capacity.
The increase in factories implies additional
energy. Yet, Congo presently doesn't have
sufficient industries and even though it
could, they lack having operating means
of these industries. We potentially have
now 44,000 MW energy power but only 1,765MW
are exploited at Inga site 1 (365MW) and
Inga site 2 (1,400 MW), which only represents
2.5 % of Inga potentials. The overall national
energy power exploited is roughly estimated
at about 2,500 MW out of 100,00MW that the
whole country can produce. Therefore, the
consumption of energy power for the country
represents 4 % of what we can produce. However,
along with our partners we can set up again
Inga site 3, which will produce again 3,500MW
and we can build the "Great Inga"
that is supposed to produce 39,0000 MW in
addition to existing facilities.
Summit Communications : In terms of
strategy, are the electrical resources more
important than the others mainly the mining
resources?
Minister of energy, Mr. Mwanahembe: I hope
they are highly more important than other
mining resources because they can be exceedingly
beneficial for the country. Essentially
these resources provide political stability,
mainly because everyone will desire to protect
the Great Inga, and the country will then
be secured. The problem will settle for
itself and will be considered as a Common
Heritage. Thus, it is profitable to us to
see that Inga becomes a "Guarantee
of Peace" all over Africa and that
will gather everybody.
Summit Communications : What are the
country resources as regards to hydrocarbons
like gas or oil?
Minister of energy, Mr. Mwanahembe: We
have tremendous potentialities. In the central
basin, we have oil that is insufficiently
exploited thus far. Obviously, preliminary
exploitations have already started but we
are bound to keep on for the moment with
oil from the coastal basin side. But the
exploitation in the Lower Congo province
is very small ( 30,000 baril per day). Millions
of dollars are available from our partners
but the exploitation is still very small.
Companies are contacting us in order to
intensify the exploitation and exploration
on that coast because there is a part that
is still not exploited. This exploitation
is done off-shore and on-shore. It's an
area covering 6000 square metres. One side
is in the ocean and the other one on dry
land, but the reserve on off-shore is about
80M of barrels. However, we have 20 million
barrels on-shore. To sum up, 100 M barrels
are probably available in the coastal basin.
But we have also gases associated with petroleum
(oil), burnt gas with torchlight (procession).
Besides, an American company is interested
in its exploitation. But up to now, gas
is flying up in the air and it's a useless
loss of millions and millions of dollars.
We possess rare gas namely methane gas in
Kivu Lake as well as bitumen derived from
petroleum, in the Lower Congo, which are
not exploited and are estimated at 14 million
tons. Its exploitation can facilitate to
renovate roads because it is made of asphalt
sand.
Summit Communications: We have learnt
that the gas which in Kivu Lake has the
peculiarity to be the only gas found in
the water. Would you confirm its peculiarity?
Minister of energy, Mr. Mwanahembe: Absolutely
right. But we need to manage to extract
it out of the water and no survey to date
has been performed in order to assess its
extraction cost. But it requires a great
technology. Lake Kivu abounds in this sort
of gas.
Summit Communications: Let us revert
to the issue of Inga dam. Would you give
us a general view of the potentials of Inga
Dam and the reasons which are a setback
to its development?
Minister of energy, Mr. Mwanahembe: Our
production capacity is 1,765 MW. In terms
of obstacles, we have mainly financial constraints.
In fact, Inga I was built in 1972 and Inga
2 in 1980; therefore the equipment has become
old. We cannot keep on doing the upkeep
of the equipment because we must be able
to rehabilitate it. And the cost is rather
high; roughly 500 million dollars. Apart
from fixing the water "wheels",
we must unclog the channel that is filled
with the sand for 32 years. It is clogged
with 60 million cubic metres of sand, preventing
the "wheels" to operate properly.
We need to fill in all the cracks in the
infrastructure of civil engineering and
then succeed building Inga 3, the cost of
which is estimated to 3.5 billion dollars,
that we don't have presently. On the other
hand, the solution will be to negotiate
with donors on public or private partnership
and increase the number of companies. I
would like to acknowledge the commitment
of the World Bank that granted us a funding
of 9 million dollars for reliability survey.
But for the complete rehabilitation, we
need a minimum of 20 million dollars per
wheels. Now, we need 320 million dollars
for 16 "wheels" and if we have
access to the equipment to dredge and other
additional works we'll reach virtually 500M
dollars. As for the production, that's the
whole picture. We also have a high-tension
electrical transport line to launch again
because the population has exceedingly increased
and in fact the current line between Inga
and Kinshasa is full, we must double the
line. It requires roughly 80 M dollars in
order to obtain the second electrical line
as it is the wish of other partners. We
always joint-venture partnership because
the first partners will build, then exploit
and finally transfer the investment through
a certain number of years. We have created
a joint-management company, and the investor
is not supposed to make a loss, but the
reimbursement will be done in the electrical
exploitation.
Another rising problem is the distribution
of the energy in Kinshasa; we should change
cables, counters and transformers owing
to the network out-of-date.
Summit Communications: What are the
financial means that your ministry has to
achieve the rehabilitation works of Inga
dam and in electrical network in general?
Minister of energy; Mr. Mwanahembe: Unfortunately,
the ministry has almost nothing. We have
about a hundred million dollars that is
imparted to the budget, but it is still
virtually insufficient. The aforesaid amount
can not meet the rehabilitation needs. We
can just only meet the reliability need,
that is to say, undertaking small works
of maintenance and renovating ones, as replacing
engine (lubricant) oil or small spare parts
but the complete maintenance and rehabilitation
requires a great amount of money.
Summit Communications: At the organizational
level, what are state companies that are
linked to your ministry and how do they
operate?
Minister of energy, Mr. Mwanahembe: The
National Company of Electricity (SNEL) and
REGIDESO, the national water supplying company
are both state companies. The ministry has
a political impact but these companies have
an autonomous management. Obviously, they
run their own funds but we give some boost
and control their actions as well. Moreover,
we have noticed that there aree things to
revise for instance for SNEL, the collecting
rate of which decreased seriously down to
30%; but SNEL is even unable to collect
all the funds. Therefore, if we can do it,
I hope they would have means to meet some
obligations in terms of maintenance. That
is why we are developing a reforming program
in order to motivate back state companies
in general but especially commercial division
of SNEL and REGIDESO as regards to our ministry.
For example REGIDESO has 53% collecting
rate. We need to improve policies of management.
The state is also responsible for this decrease
because they consume water and electricity
but they have never paid. Therefore, we
owe a lot of money to SNEL: about 400M dollars;
and 245 M dollars to REGIDESO. The state
is unable to pay all these overdue payments.
Absolutely, internal governance of these
companies must be reorganised.
Summit Communications: How do you get
along with foreign investment partnerships?
Minister of energy, Mr. Mwanahembe: Companies
make partnerships with investors but as
long as the whole country is concerned;
the Ministry examines agreements and submits
them to the government board (council),
which has to appreciate and finally we can
allow the partnership. We can also identify
partners and guide them as well. Currently,
we don't prefer the monopoly system SNEL
and REGIDESO have, respectively monopoly
in producing electricity and distributing
water throughout the country. We would like
to open this sector to private partners
in order to rouse competition and more efficient
management system. Moreover, CORIREP (an
initiative of the World Bank, which aims
at reforming the state companies) and I
expect that within a month, it will end
up in reforming state companies like SNEL.
Maybe, we can hand to private administrations
the technical and commercial sectors. As
regards REGIDESO, undoubtedly it will solve
current problems in accessing to drinking
water, the rate of which represents circa
25% for the whole country. In Kinshasa,
there is a 30 cubic meters deficit; while
local and international NGOs assist the
population to access to drinking water in
some areas of the country. But it is the
responsibility of the government to provide
sustainable responses for the population.
So we are looking forward to seeing these
reforms bring considerable improvements.
Summit Communications: What is the confident
message you would like to deliver to potential
investors in the sector of Energy?
Minister of energy, Mr. Mwanahembe: Generally
speaking, an investor is one who likes taking
risks. Frankly, in Congo, I admit that security
conditions are no more a true reason to
scare investors. We have got tremendous
potentialities in exploiting oil virtually
in all over the country because deposits
are regularly identified. We have possibilities
to exploit energy everywhere as well. Presently,
we dispose of 100,00MW energy power (capacity)
and 2.5% of this potential is exploited;
possibilities to obtain such investments
in energy sector. Energy highway directs
Congolese electricity towards bordering
countries and even far up to the Western
Europe. Actually, we are planning to have
interconnection with Europe from Egypt and
eventually benefit in return from what we
invested. However, I invite investors who
are planning to come in supporting our country;
in order to face these Millennium Goals
in meeting these challenges positively:
provide drinking water and electricity to
everyone, and giving out petroleum to everyone
as well.
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