INVEST IN MALI (SECTOR OF ELECTRICITY)

Transcription

1 INVEST IN MALI (SECTOR OF ELECTRICITY) A WORLD OF OPPORTUNITIES (version corrigée)

2 OVERWIEW 1. KEY DATA OF MALI 2. WHY INVEST IN MALI? 3. BUSINESS CLIMATE 4. INVESTMENT OPPORTUNITIES 5. INVESTMENT NEEDS IN THE POWER SECTOR 6. CONCLUSION

3 1. KEY DATA OF MALI AREA: large territory of plains of plateaus with an area of Km 2 ; POPULATION: approximately 17,9 millions inhabitants in 2015, a rapid growth (+3,62%/annum); GDP: $12 billions in 2013, $732/capita; STRATEGIC LOCATION: At the heart of the west african region,a key trade hub, with 7 neighboring countries (Burkina, Ivory Coast, Guinea, Senegal, Mauritania, Algeria, Niger); STABILITY: a new governance implemented to enhance the political stability regained since early 2013; ELECTRICYTY CONSUMPTION: fast growing; an average growth rate of 10,2% per annum;

4 2. WHY INVEST IN MALI 1. MALI, A HUB IN WEST AFRICA: Strategic access point to the subregional and regional market (WAEMU,ECOWAS); 2. RICH AND AUTHENTIC CULTURE: a real cradle to many cultural and tourist wonders, and many sites classified as world cultural heritage by UNESCO ; 3. ENABLING ECONOMIC ENVIRONMENT: a GDP annual growth rate around 5.5%; 4. IMPROVING BUSINESS CLIMATE: better-suited investment code, good ranking in business reform: 2 nd in WAEMU, 3 rd in Sub-saharan Africa and 7 th in the world; 5. COMPETITIVE LEGAL AND REGULATORY FRAMEWORK: Improved governance to facilitate doing business; 6. DYNAMIC AND THRIVING PRIVATE SECTOR: enters into partnership with international firms for the transfer of technology. Ambitious private sector orientation law being implemented; 7. WIDE RANGE OF INVESTMENT OPPORTUNITIES: Energy, agriculture, mines, tourism, handicraft industry, etc. 8. WELCOMING COUNTRY RESOLUTELY GEARED TOWARDS A LONG-TERM POLITICAL STABILITY AND ECONOMIC GROWTH

5 3. BUSINESS CLIMATE (1/2) THE TREND IN FOREIGN DIRECT INVESTMENTS (% GDP): 20.21% in 2011; 14.77% in 2012; 19.33% in 2013; 21.59% in The global average is 22.20% EVOLUTION OF BUSINESS START-UPS ( one-stop shop for new businesses ): firms in 2009; firms in 2013,or 2.61 times the number of firms in 2009.

6 3. BUSINESS CLIMATE (2/2) NO DISCRIMINATION: between foreign investors and domestic investors. They are given the same privileges. REVENUE TRANSFER: the right to capital transfer and their earnings is guaranteed to natural or legal persons conducting an investment financed by a contribution in currencies in Mali ; PARTERSHIP WITH DOMESTIC INVESTORS: Foreign investors are not required to have a Malian partner in their investments in Mali. The capital may be totally foreign; EXPROPRIATION : Investors are protected by law against nationalization and expropriation actions; SETTLEMENT OF DISPUTES: Mali is a member of the International Centre for the Settlement of Investment Disputes, of the Common Justice and Arbitration Court, and the Organisation for the Harmonization of Business Law in Africa (OHADA); GUARANTEES: Investors in Mali are guaranteed within the meaning of article 15 of the Treaty establishing the Multilateral Investment Guarantee Agency (MIGA);

7 4. WHY INVEST IN THE POWER SECTOR IN MALI: FISCAL AND CUSTOMS ADVANTAGES TO INVESTORS REGIMES AMOUNT OF THE INVESTMENT (USD) CUSTOMS EXEMPTIO NS VAT EXEMPTION S 25% REDUCTION IN TAXATION RATES MINIMUM TAX RATE EXEMPTION Exemption from all taxes A < invest.< years 3 years 7 years n/a 30 years (if over 80% of the production if exported) B < invest.< years 3 years 10 years 8 years n/a C Invest.> years 3 years 15 years 10 years n/a D Invest. Of more than (Export 80%) 30 years

8 4.2. INVESTMENT OPPORTUNITIES IN THE POWER SECTOR A STRONG GROWTH IN DEMAND AROUND 10%/ANNUM Accentuated by the strong growth in demand of the mining sector which remains a significant solvent customer AN IMPORTANT POTENTIAL MW and GWh/an hydro; 5 to 7 KWh/m2/day in solar power, reasonably distributed; 3 to 7 m/s wind speed (wind energy) in the sahelo-saharan areas IMBALANCES BETWEEN SUPPLY AND DEMAND EVOLUTION OF THE DEMAND (GWh) The Malian power sector is experiencing a considerable deficit of production, hence an increasing resort to power purchase (imports, IPP) With an installed capacity of approximately 450 MW, the interconnected grid covers the half of the current demand, which grows at the pace of 10%/annum; The unmet demand, including the autoproducers, is covered by self-generation by using diesel generators, which cost hinders the economic development of Mali

9 5.1 INVEST IN POWER GENERATION ADDITIONAL CAPACITY OF 1 554,6 MW REQUIRED IN ORDER TO MEET THE DEMAND BETWEEN 2015 AND 2035 AND AN INVESTMENT OF 2 144,52 MILLION TO BE REALIZE INCLUDING: INVESMENT REQUIRED: 2 144,52 MILLIONS OF EUROS: 1 992,8 million for the construction 13 hydro power stations for an overall capacity of 453,6 MW; 438,92 million for 6 thermal power stations amounting to an overall capacity of 375 MW; 250 million for the construction of 4 solar power plants amounting to an overall capacity of 173 MWp; 46 millions for 3 hybrid power stations amounting to an overall capacity of 55 MW; 116,8 million for 5 interconnections with neighbouring countries allowing the importation of up to 498 MW.

10 5.2 INVEST IN THE TRANSPORTATION GRID KM (225 KV et 90 KV): EXTENSION PLANNED OVER THE PERIOD INCLUDING: km in 90 KV; km in 225 KV ,95 MILLION: ESTIMATED AMOUNT REQUIRED TO MEET THE INVESTMENT NEED FOR THE TRANSPORTATION GRID ( ) IS AS FOLLOWS: 991,7 million (high voltage B: 225 and 90 KV) and 54,25 million (high voltage A: 33 KV).

11 5.3 INVEST IN THE DISTRIBUTION GRID IMPLEMENTATION PLANNED OVER THE PERIOD : km medium voltage (15 KV); km low voltage; posts MV/LV. AMOUNT ESTIMATED AT MILLION : million: medium voltage ; million: low voltage; million: posts MV/LV

12 5.4 INVESTMENT AND AVERAGE COSTS OVERALL NEED IN INVESTMENT ESTIMATED AT 4 234,52 MILLION OVER INCLUDING: ,52 million for power generation, or 50,6% of the total amount of Investment); million for transportation and distribution, or 49,4% of the total amount of investment; - AVERAGE COST OF THE kwh ESTIMATED AT 15,2 CENTS: - 13,2 cents on average for 1 kwh electricity generation; - 2,1 cents on average for 1 KWH transportation of electricity

13 5.5 FUTUR HYDROELECTRIC PROJECTS PROJET RIVIERE PAYS PUISSANCE INSTALLEE PRODUCTION MOYENNE ANNUELLE PUISSANCE GARANTIE ENERGIE GARANTIE DATE DE MISE EN SERVICE COUT HORS IDC (2014) COUT DU KW COUT DU KWH QUOTE-PART (PROJET OMVS) MW GWh MW GWh Million d' /kw /kwh Sotuba II Niger Mali Centrales Programmées Centrales Candidates Kenie Niger Mali Taoussa Niger Mali Gouina (base) Gouina (pointe) Sénégal Mali 63 (Mali) (Mali) Sénégal Mali 63 (Mali) (Mali) 8.5 en base (Mali) 40 en pointe (Mali) 94.5(Mali) dont 48 en pointe (Mali) Markala Niger Mali Talo Bani Mali Non Connu Bagoé II Bani Mali Non Connu Baoulé III Baoule Mali Non Connu Baoulé IV Baoule Mali Non Connu Badoumbé Bakoye Mali Non Connu Koukoutamba Bafing Guinée 93.2 (Mali) 246 (Mali) 18 (Mali) 170 (Mali) Boureya Bafing Guinée 36.1 (Mali) 242 (Mali) 17 (Mali) 165 (Mali) Gourbassi Falémé Mali (Mali) 102 (Mali) % % (Mali) (Mali) % %

14 5.6 FUTUR SOLAR POWER PROJECTS Project R20/AKUO 50 MWp to be located in Kita Expected production: 86 GWh Project Scatec 33MWp to be located in Ségou Expected production : 57 GWh Project Xon 50 MWp to be located in Sikasso Expected production : 73 GWh Project CGCOC GROUP 40 MWp to be located in Kati Expected production : 59 GWh Many calls for tenders Koutiala Sikasso Diema

15 5.7 POWER TRADE WITH NEIGHBORING COUNTRIES Interconnexion Senegal-Mauritania Senegal remains an importater Mauritania capable of exporting up to 48 MW (annual maximum of 340 GWh) at a purchase price of 70 FCFA/kWh ( 10,67 cents/kwh) by 2016 Interconnexion with Ivory Coast Exchange Capacity of 80 MW in 2018 Possibility to increase this capacity to 150 MW by 2025 Purchase Price: 86 FCFA/kWh ( 13,11 cents/kwh) Interconnexion with Ghana Transit by Burkina Faso Exchange Capacity of 100 MW by 2018 Purchase Price of 90 FCFA/kWh ( 13,72 cents/kwh) Interconnexion with Guinea (Conakry) Exchange Capacity of 50 MW by 2022 Increased Exchange Capacity to 200 MW by 2025 Increased Exchange Capacity to 400 MW by 2030 Purchase Price: 80 FCFA/kWh ( 12,20 cents/kwh)

16 6. CONCLUSION - THE NEEDS OF INVESTMENT IN THE POWER SECTOR ARE CONSIDERABLE, IN AVERAGE 212 MILLION PER ANNUM THESE NEEDS ARE EVEN GREATER IN OTHER SECTORS SUCH AS: agriculture, with vast tracts of arable land and constituting the largest untapped land resource of the region; livestock, with the largest herd of cattle in the sub region. mines with very rich and varied potential; Business tourism, due to its geographical position Mali proves be a destination of choice for international conferences. IN ORDER TO INCREASE THE FOREIGN DIRECT INVESTMENTS IN MALI, A STRATEGIC AND OPERATIONAL PLAN HAS BEEN VALIDATED ON OCTOBER 2ND,2015. THIS PLAN TAKES INTO ACCOUNT THE BEST SUB-REGIONAL AND GLOBAL PRACTICES IN TERMS OF BUSINESS CLIMATE IMPROVEMENT. THE EXECUTION OF THE PLAN WILL FACILITATE DOING BUSINESS, ENHANCE THE STRUCTURAL REFORMS AND CREATE AN ENABLING BUSINESS ENVIRONMENT FOR AN EMERGING MALI.