WAPP Project Implementation Strategy

WAPP Project Implementation Strategy

WAPP Generation & Transmission Master Plan Its identified all the Generation and Transmission Projects required to develop and implement the power pool project; Provided a sequential and harmonised project implementation plan. 2

WAPP Implementation strategy based on realizing the following subprograms: Coastal Transmission Backbone Subprogram (Cote d Ivoire, Ghana, Benin/Togo, Nigeria). Inter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, Cote d Ivoire via Mali, LSG via Cote d Ivoire). North-core Transmission Sub-program (Nigeria, Niger, Burkina Faso, Benin). OMVG/OMVS Power System Development Subprogram (The Gambia, Guinea, Guinea Bissau, Mali, Senegal) Cote d Ivoire-Liberia-Sierra Leone-Guinea Power System Re-development Subprogram (Cote d Ivoire, Liberia, Sierra Leone, Guinea). 3

WAPP Generation & Transmissions Master Plan Interconnections in service 2004-2011 West Africa Gas Pipeline Phase II interconnections OMVS SENEGAL MALI NIGER THE GAMBIA GUINEA BISSAU OMVG GUINEA BURKINA FASO BENIN SIERRA LEONE LIBERIA CÔTE D IVOIRE GHANA TOGO NIGERIA 4

Project Implementation Strategy Traditional Approach New Approach 5

Traditional Approach Pre-investment Studies; Each Country through it Utility implements portion of project in its territory by soliciting for funding separately from the other(s); Carrying out procurement process separately from the other(s) using its procurement rules; Awards Contracts separately from the other(s) This Results in Too many contractors carrying out the project implementation; Poor project implementation coordination Long delivery periods; 6

Case Study The WAPP 330 kv Coastal Transmission Backbone 7

The WAPP 330 kv Coastal Transmission Backbone GHANA TOGO BENIN NIGERIA Kumasi Momé Momé Hagou Hague Sakété AfDB Obuasi Obuasi Akosombo Cotonou CÔTE D IVOIRE Prestea APL 1B APL 1A Volta Accra APL 1B Lomé Existing 161 kv Committed 330 kv line Committed 161 330kV line Aboadze Proposed 330 kv operated at 161 kv

First Phase of the 330 kv Coastal Transmission Backbone Ikeja West (Nigeria) Sakété (Benin) Interconnection Project The Project consist of: 70 km 330 kv Transmission Line 75 MVAR shunt reactor to be installed in Ikeja West 200 MVA, 330/161 kv and 25 MVA, 161/63/20 kv transformers to be installed at Sakété Maximum power transfer between Nigeria and Benin will be 210 MW Time Schedule: Discussions about interconnecting the national electricity systems in West Africa started in the 1970 s Pre-feasibility studies were carried out in 1983 / 84 Final feasibility study prepared in 1996 Commissioning of the transmission line in February 2007

Actual Project Implementation Plan

Preferred Project Implementation Plan TYPICAL TIME SCHEDULE FOR TENDERING (Example) YEAR 2xxx ACTIVITY MONTH 1 2 3 4 5 6 7 8 9 10 11 12 WEEK NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Project Preparation Completed (Feasibility Studies etc.) X Preparation of Advert and Prequalification Documents Call for PQ Applications Preparation of PQ applications Dead line for submission of PQ Applications Evaluation of PQ Applications Preparation of Short List - Approvals Preparation of Tender Documents, Two Stage Bidding Invitation to Pre-qualified Bidders Tender Period, First Stage Pre-bid meeting / Site visit Clarification of Queries from Bidders Submission of Bids (Technical, First Stage) Evaluation of Technical Proposals, First Stage Call for Clarification Meetings Clarification Meetings, issue of Memorandums Invitations to submit Second Stage Bids Preparation of Second Stage Bids Evaluation of Second Stage Bids Final Tender Evaluation Report issued and approved Contract Award, Signing of Contract Mobilization period Commencement of Work X X X X X X

Ikeja West Sakété 330 kv Transmission Line Lessons learned The preparation period was too long (about 10 years) Provision of consultancy services was divided into three contracts Financing of the project was not secured up front The decision process among the involved countries / utilities was cumbersome. WAPP was not actively involved at the time Division of the project into four lots created further delays

Upcoming Project Stages within WAPP- member states Recommendations of the Case Study WAPP should play a more active coordinating role and be responsible for securing financing up front The utilities involved should set up one Project Implementation Unit (PIU) Consultancy Services to be provided by one consulting firm The construction work to be carried out by one contractor working on output based specifications (PBP) O & M to be carried out by the same contractor

New Project Implementation Strategy The Authority of ECOWAS Heads of State and Government enacted a Supplementary Act on January 18, 2008 to provide the legal framework for the use of Special Purpose Companies within the framework of Public-Private Partnership to raise the required financing for the implementation of the project, operation and maintenance of the facility. 14

Conclusion New Project Implementation Strategy for Implementing Cross-border interconnection projects: Carry out the pre-investment studies including preparing functioning specifications for the project under supervision of the Power Pool Secretariat; Set up a Special Purpose Company under a Public- Private Partnership to manage the procurement process and supervise the project implementation; Use Performance-Based Procurement for the tendering/procurement for the project; Restructure the funding arrangements to support the new approach. 15