More than a billion dollars will be needed to rebuild and expand the country’s damaged electricity network
lowly
but surely, Angola’s power stations are being rehabilitated, providing
electricity to areas which have been without reliable supplies during
the years of civil war. More than a billion dollars will be needed for
reconstruction and expansion works to meet rising demand.
Nevertheless, despite the enormous task of restoring the infrastructure
destroyed by Unita rebels, Angola could one day become a net electricity
exporter within the Southern African Development Community (SADC). The
country has already signed an agreement with its southern neighbour,
Namibia, to promote cross-border electricity supplies, and on other
issues of common interest.
Work on the largest-ever civil construction project in the country,
a dam and 520MW hydroelectric plant on the Cuanza River at Capanda,
300km from the capital, Luanda, has resumed. Brazilian industrial giant
Odebrecht is building the multi-million dollar Capanda project with
Russian technical assistance.
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Energy
and water minister Luis Filipe da Silva
says: “Capanda should have been completed in 1994, but because
of the war the work stopped. Then Unita occupied it and destroyed all
the equipment and machines. But they did not destroy the building itself
as it was already at an advanced phase.”
A further seven hydroelectric dams may be built between Capanda and
Cambambe (where there is a 180MW power plant) to produce a total of
5,000MW of power. “We want to transfer this potential to other
regions and to countries in the SADC,” adds Mr da Silva.
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Gamek,
created by the government in 1982, is responsible for carrying out studies
and implementing projects in the Kwanza region. General manager Jose
Sonnemberg Fernandes says the first unit will start operating
in December 2002 and the final unit will start the following June.
“With the construction of Capanda dam, a 164 sq km lake will be
created that will used to irrigate the plateau in Malange province,”
says Mr Fernandes. “This is an extremely rich agricultural zone
and it will encourage the development of livestock rearing.”
Gamek is trying to diversify its activities. “We already have experience
in other areas that could be used in the development of the country,
such as the construction of bridges, roads and factories, although our
main duties are in Middle Kwanza,” he says. “Capanda is an
extraordinarily good area in which to create an industrial zone and
to develop agriculture. It is also an area with good prospects for the
development of tourism. There are some enormous and beautiful rock formations
at Pungo Andongo near Capanda.”
Mr
da Silva adds: “We have been reconstructing infrastructure whenever
areas have been made secure and we have the finance to do so. But we
are still very far from the complete rehabilitation of the electricity
network. Just to rehabilitate it we will need more than $500 million
and to expand it we need another $500 million.” Angola is a large
country with a low population density, so it is not always easy to spread
the investment evenly.
The country has several other potential hydropower sources, including
the Zaire River. “We are interested in foreign participation,”
says Mr da Silva. “All the conditions for foreign investment, including
legislation, incentives, security and investment guarantees, and the
repatriation of money are being created.”
The Russian Alrosa diamond company is planning to build a hydroelectric
plant on the Chicapa River to provide a source of power for its $40
million investment in diamond mining operations.
“Until 1996 the power sector was monopolised by the state, but
today the picture has changed,” adds Mr da Silva. “At the
moment we are working to create an organisation to regulate the energy
sector so that investors can have more confidence in Angola.”
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The
state-owned Empresa
Nacional de Electricidade (ENE) is responsible for the generation
and supply of electricity. Chairman Eduardo
Gomes Nelumba is optimistic about the future, but says
it will take at least five years to fully rehabilitate the sector, and
he emphasises the need for outside help.
“Our government has invested, but not enough to solve our problems.
We need enough money to assure the areas of production, transmission,
distribution and maintenance of equipment,” he says. “ENE
will need national or foreign partners to perform some projects, and
it will need the help of the international financial institutions. Only
with international support will we be able to do it.”
Most of ENE’s operations are in the coastal provinces, where there
are more people. “Luanda is the single biggest consumer and demand
is growing daily,” he says. “The cities of Benguela, Lobito
and Catumbela are also priorities because of the industries there, including
the new refinery.”
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