Introduction to Agua Imara - Norwegian

Introduction to Agua Imara
By Einar Stenstadvold
Chief Executive Officer
Content
► The Mission and Business Model
► Ambitions and Experiences
► Agua Imara has started construction of Hydropower plant in Panama
► Agua Imara has acquired Hydropower company in Zambia ► Agua Imara is targeting Mozambique ”Hydropower”
Agua means Water or Hydro in Spanish and Portuguese
Imara means Power or Strength in Swahili Our mission:
“To become a leading renewable energy company in Africa and Central America, with a main focus on hydropower, contributing to economic growth and sustainable development”
Agua Imara’s Owners:
Statkraft Group ► Europe’s largest renewable energy company
► 282 plants, 16 000 MW and 57 TWh in power production
Norfund
► The Norwegian Investment Fund for Developing Countries ► Africa is a priority SN Power Group, Established June 2002 ► Owned by Statkraft (60%) and Norfund (40%)
► 16 power plants (15 hydro, 1 wind), 1 140 MW and 5.0 TWh
BKK
► 31 hydro power plants, 1,685 MW and 6.7 TWh
Trønder Energi
► 19 hydro power plants and two wind‐power plants 490 MW and 2.1TWh
It is our owners heritage and experience we sell to the markets in Central America and Sub‐Sahara Africa
► Hydropower equals electricity in Norway , and using this tremendous experience and expertise “is” Agua Imara:
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More than 100 years of Norwegian hydropower development
•
10 years of pioneering efforts by Statkraft in Laos and Nepal in the 90’s
•
10 years of SN Power experience in Asia and South America after year 2000
► Agua Imara name and logo commits us to execute according to the heritage
► We must execute and operate hydropower better than most others
It is our ambition to do everything we can to fill this role.
‐ It is our “license to operate” Renewable energy projects are complex and expensive to develop ► Our best efforts include the following:

Move people and resources into the project organizations
 Team up with the best possible local partners and consultants
 Follow international well proven standards of conduct
 Use our owners experience and methods  Avoid using agents and expensive and risky middlemen
 Solve the “showstoppers” first  Avoid “shortcuts”
A well proven project process is a valuable tool, but do not substitute good business judgment
Agua Imara’s ambitions
► Have around 700 MW of Hydropower in operation or under construction by
2015:
What we announce so far can fulfill 1/3 of this
► Follow all important international standards of conduct and project develop ,
such as:
UN Global Compact
World Bank Standards
► Develop a cost effective organization where we all take responsibility:
Operate a classic Matrix Organization, either Line or Project
Focus on a long term profitable operation
Long term Profitability = Strong Partners = Control
= Safety , Health and Environmental Quality
Organization structure Agua Imara
Agua Imara AS
Headquarters Oslo ‐ 8 people + 3 full‐time consultants
SN Power ACA Holding Pte Ltd
Singapore ‐ 1 person
Regional Branch Office
Central America 5 people
Fountain Intertrade Corp
The Bajo Frio Project
Panama 15 people
Regional Branch Office
Africa 2 people
Lunsemfwa Hydro Power Company
Zambia 61 people
Hydropower in emerging markets is business‐ not “aid”
► Agua Imara is asked to execute profitable projects with the following characteristics:
Light environmental footprint
Minimize negative social consequences without jeopardizing the positive once
Hands‐on approach to minimize risk
Avoid projects at a too early stage Maintain good, long term Corporate Social Responsibility Standards
► Poor countries cannot afford to subsidize commercial projects that are unprofitable
Profitable projects pay taxes locally and in the host country
Profitable companies create new jobs
We use profits to reinvest
► Very few loss making businesses are socially profitable
The Bajo Frio Hydropower Project 50,1% Agua Imara 49,9% CrediCorp Group
► 220 MUSD (1,2 Billion NOK) total investment
► Construction has started in 2011, in operation from early 2014
► 58 MW capacity ‐ 260 GWh average annual production
Lay out of the Bajo Frio Project
Agua Imara acquires 51% of Lunsemfwa
Hydropower Company in Zambia
Lunsemfwa
Mulungushi
Facts about Lunsemfwa Hydropower Company ► Independent Power Producer established in 2001 when Zambian mining conglomerate ZCCM was privatized
► Owner/operator of
•
two ageing hydropower plants (46.5MW) with two large upstream storage/regulation reservoirs:
‐ Mulungushi: 28.5 MW, 235‐250 GWh/year ‐ Lunsemfwa: 18 MW, 150‐160 GWh/year
Mulungushi
•
•
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66 kV transmission infrastructure
80 km road network
Lunsemfwa is currently being extended with another 6 MW.
► Off‐takers
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Zesco 95% (=Zambia’s “Statkraft”)
Chiman 5% (Chinese mining company )
► Concession holder for Lower Lunsemfwa
Lunsemfwa
and Mukushi hydropower development (200 MW ‐ 400 MW)
Big potensial in Lunsemfwa Hydropower Company
► Water use 38 m³/sec out of 60 m³/sec
► Side rivers downstream are not used
►“Head” use is 480 m out of 950 usable meters
► Simple mathematics shows a large potential
If we used 10 % of the likely expansion to electrification, we can electrify 10 % of all households
Agua Imara in Mozambique
Agua Imara is currently looking into two projects in Mozambique
► Alto Malema (50‐60 MW)
• The Alto Malema project is located about 10 ‐ 15 km north‐
east of Gurue in the Zambezia Province. The project will transfer water from the Malema River to the Innari River ► Massingir (25‐60 MW)
• The Massingir dam is located on the Elefantes River in southern Gaza province and it is provided for a power plant at the foot of the dam.
Alto Malem
Massingir
Agua Imara in Mozambique
Cooperation with EDM
► Long lasting cooperation with EDM
► Before 2009 we pursued the development of a ROT scheme for the rehabilitation of the existing Chicamba and Mavuzi power plants, and signed an agreement with EDM in this regard – however, without reaching realization
► 2010/11: Signed a Master Cooperation Agreement (MCA) and
a Joint Development Agreement (JDA) with EDM for the development of the Alto Malema
project. ► Performed investigations of environmental and social impacts of developing Alto Malema
► Site visits to Alto Malema and Masingir
► Meetings with Prime Minister, Ministry of Energy, EDM, Ara ‐Sul
Mozambique – Alto Malema
► Utilizes a gross head of about 500 m metres
► Installed capacity is 60 MW and average energy production is 222 GWh/year
► Rock fill dam at the Malema river. Water transfer from reservoir through tunnel to powerhouse at the Innari
river. ► Challenges:
Inundation of land in the reservoir area; relocation of people, use of land in the buffer zone and availability of new farmland; Increased flow in the Innari river. EDM and Ministry of Energy to engage in proper mitigating measures.
Mozambique – Massingir
► The Massingir dam was built in the 1970s, but the civil war
prevented its completion, notably the installation of the
sluice gates.
► Between 2004 and 2006, the dam was rehabilitated, its
height was raised and sluice gates were installed.
► In 2008, the bottom outlet pipes of the dam ruptured,
causing substantial damage. Repair works are planned to
start by end 2011.
► The development rights for a power plant are presently not
clarified. EDM and Agua Imara is seeking to obtain these
rights.
Water intake and location of damaged section at power house location, Massingir
Agua Imara is ready to invest in Mozambique
► Alto Malema: As soon as it is clarified that possible environmental and social impacts of the project can be satisfactorily mitigated, Agua Imara is prepared to speed up project development.
In this connection we need support and active participation from central and local authorities.
► Massingir: EDM and Agua Imara want to start development of the power plant. Thereafter the project can be efficient planned and built – in parallel with the planned repair works of the bottom outlet pipes and reconstruction of the irrigation capability. Agua Imara has unique experience in combining power production and irrigation.
www.aguaimara.com