Business
Grand Inga Hydropower Project: The ultimate African power project
Timeline: Work at Inga III could begin in 2014 and take several years
Costs: Inga III could cost upwards of US$7 billion, Grand Inga would cost US$80 billion
Probability: 30 percent – unless the Democratic Republic of Congo’s leadership improves
In 2010, the government of the DRC rejected a plan to develop Inga III by Westcor, a consortium of regional power producers led by South Africa’s Eskom.
A rival proposal by BHP Billiton to build a 2,500MW plant collapsed in February due to the credit crunch and the firm’s frustration with the Congolese government’s economic decision-making.
Now the South Africans are back.
The government of the Democratic Republic of Congo says it wants work on Inga III to begin in 2014 and electricity production to commence in 2017.
Yet the Democratic Republic of Congo remains a volatile, risky investment destination, negotiating with the energy parastatal is as difficult as ever, and it is still not clear whether the government wants to build Inga III or Grand Inga, or both.
Also, the absence of a promised treaty between the Democratic Republic of Congo and South Africa on Inga remains an ominous sign.
Source: The Africa Report
