Co-Prosperity Alliance Zone (COPAZ) Meeting Of Experts on Energy Cotonou
June 15th -16th 2011
1. INTRODUCTION
The meeting of Experts in energy from member States was held on June 15-16, 2011 in Cotonou at the ‘Hotel du Port”.
The meeting aimed at considering the level of implementation of the directives given by the Heads of State and Government in the final Communique at the third Summit held in Kara, Togo on July 21, 2009 on energy-related issues.
Attendance:
From Member States:
Experts in energy from COPAZ, Member States (Benin, Ghana, Nigeria and Togo) as well as focal points in Ministries of Foreign Affairs, respectively.
From COPAZ Technical Support Facility (TSF):
The Executive Secretary, the Deputy Executive Secretaries and the TSF personnel (see attendant list in annex).
2. DELIBERATIONS
2.1 OPENING
In his welcome address, the Executive Secretary of the Co-Prosperity Alliance Zone (COPAZ), Dr. Fatai ADEYEMI expressed his deep gratitude to Beninese authorities for their attention and support throughout the organisation of this meeting of Experts in energy in the member States of the Zone. He also warmly welcomed each delegation and recalled the decisions made during the 3rd Summit of Heads of State and Government on the crucial and lasting energy crisis and that the countries of the Zone are facing. To address this, according to him, the Heads of State and Government of COPAZ mandated the Executive Secretariat to convey the Experts meeting in this sector in order to determine the urgent actions to be taken for the pooling of the energy generation resources through the financing of integrated and priority projects.
In his conclusion the Executive Secretary advised the Experts to come out with recommendations likely to enable the member countries to take up the challenges that undermine the sector with a view to a sustainable development and well-being of the population in member states.
In his opening speech, Ambassador. Pamphile GOUTOUNDI, Permanent Secretary of the Ministry of Foreign Affairs and African Integration, Francophone and Beninese in diaspora, welcomed the Experts congratulated the Executive Secretariat and then enjoined the meeting to make constructive recommendations for the improvement of the living conditions and reduction of poverty of the populations in the Zone and consequently, for a sustainable development of the sector.
2.2 ELECTION OF THE BUREAU
The Bureau of the meeting was elected as follows:
Chairman – Armand DAKENOU (Benin)
Vice Chairman – Emmanuel DANKWA OSAFO (Ghana)
Rapporteur 1. – Bello SAIDU (Nigeria)
Rapporteur 2. – Tcharabalo ABIYOU (Togo)
2.3 DRAFT AGENDA AND WORKING PROGRAMME
The draft agenda was adopted without any amendment as follows:
1. Opening ceremony
2. Election of Bureau
3. Adopting of Draft Agenda and programme of work
4. Presentation of document COPAZ.SEC01/11
5. Presentation and discussion of Country papers
6. Preparation of conclusions/recommendations
7. Adoption of recommendations
8. Any other business
2.3.1 PRESENTATION OF COPAZ DOCUMENT
The document referenced COPAZ.SEC01/11 related to directives on the energy sector as adopted at the 3th Summit of COPAZ Heads of State and Government on 21″ July, 2009 in Kara, Togo was presented by the Executive Secretariat. This document pointed out the priority actions as indicated by the COPAZ Heads of State and Government to address the energy crisis that the Zone countries are facing. These actions include items 6.a, 6.b and 6.c of the final communiqué of the 3rd Summit as follows:
6a. That Ghana should endeavour to improve supply to Communauté Electrique du Bénin (CEB) to meet the electricity requirements of Benin and Togo as soon as gas is delivered to the Takoradi plant;
6b. That Nigeria should make an effort to satisfy in quality and quantity of gas in accordance with the contractual agreement. The request for additional 100 million cubic feet/day of gas by the other three countries will be studied and met at a later date;
6c. That effort should be made to pool the existing energy resources in Member States through the financing of integrated priority projects; and
2.3.2 PRESENTATION AND DISCUSSION OF COUNTRY PAPERS
NIGERIA
The first presentation was made by Nigerian delegates (Power) with the following submissions:
1. Nigeria has increased electricity supply to Benin and Togo from 80MW to 150MW since the last COPAZ summit in Karı, Togo, in July 2009.
2. Nigeria has secured World Bank loan to partly use for rehabilitation of Kainji Power Station to support the proposed 330KV Kainji – Parakou – Kara – Yendi interconnection among the COPAZ member states. The station is firmly connected to the rest of Nigerian grid where export of power is possible as soon as there is improvement in generation. Presently, there is a lot of government investment and commitment in power sector to improve power supply in Nigeria.
3. Implementation of the proposed 330KV Kainji-Parakou-Kara -Yendi interconnection will require the following action plans:
a. International Agreement relating to the Interconnection of Power Grids between the Federal Republic of Nigeria, the Republics of Benin and Togo and Republic of Ghana.
b. Interconnection Agreement between the Power Utilities of Nigeria, Ghana, Benin and Togo for the supply of Electrical Power and Energy.
c. Appointment of Consultant to conduct feasibility and EIA studies and produce bankable report for funding.
d. Source of funding for the studies and EPC.
e. Strategy for project implementation.
On the issue of gas Nigeria is committed to the delivery of the foundation volume of about 140mmscf/day. Supply has been consistent as required in the last few months with plans to ramp up shortly. With respect to the additional demand of 100mmscf/day of gas to the other three countries Nigeria will have to conduct a study and meet at a later date
TOGO
While highlighting the major items of the 3 Summit, Togo informed the meeting about the increase in supply of energy by Ghana. Efforts are being made by Ghana to maintain the supply levels to meet the demand of CЕВ.
The issue of additional 100 mmcf per day to be provided by Nigeria is crucial to Togo as it will enable the operation of the recently commissioned ContourGlobal plant.
The pooling of energy generation sources of the four (4) countries of the Zone requires the synchronization of the grids. To this end, the stakeholders, namely la Communauté Electrique du Benin (CEB) of Benin and Togo, the Transmission Company of Nigeria (TCN) and Ghana Grid Company (GRIDCo), should undertake joint actions in order to harmonise the interconnection of their grids.
Once the technical conditions of synchronisation are met, the development of generation and interconnection of existing high capacity lines will enable effective pooling of power generation resources in the Zone.
As regards trans-border electrification projects undertaken by WAPP, the first phase of electrification of about twenty (20) rural areas between Togo and Ghana, with financing from EU and contribution from national power companies (CEB, CEET and ECG) has been completed. Funding for the second phase of trans-border electrification is under negotiation with the EU for the electrification of about thirty (30) rural communities between Togo-Benin and Togo-Ghana.
GHANA
Supply to CEB has increased from the pre 2009 values of 747GWh in 2006 to 235GWh in 2007 to 811GWh in 2010. This was aginst the backdrop of erratic supply of gas from WAGP. The Takoradi plant to date does not receive compressed gas which would guarantee the contracted volume of 120 mm cubic feet/day adequate to run 4 x 100MW gas turbines as was envisaged at the third summit of the COPAZ in 2009.
Generation of power to meet the demands of Togo and Benin had to be augmented. from more expensive sources of fuel namely light crude oil and diesel.
Ghana’s energy policy objectives include increasing the total installed capacity from 2,00MW to 5,000MW in the short term.
Some of the strategies adopted to achieve the above include:
§ Promotion and encouragement of the private sector in the participation of the power generation sub-sector.
§ Continuation of the reforms which has resulted in the unbundling of the power generation sector and the creation of the wholly state owned Ghana Grid Company (GRIDCo), to operate and manage the national transmission network and also undertake dispatch functions.
§ Transparent permitting and licensing regime.
Government through GRIDCo is preparing an update of the Generation and Transmission Master Plans as a road map to future developments in the sector.
During the preparation of the Master Plans adequate consultations were held with CEB and their forecast demand were factored in the Plans. This is to ensure that the present and long-term needs of the CEB are catered for during the development of the Ghana Systems.
To ensure that the power generated is reliably and adequately transmitted to Togo and Benin, a number of transmission projects are underway. These include:
§ 330kV, Tema Lome line, which is part of the 330kV Coastal back-bone project. This contract has been awarded and it is expected to be effective by the middle of this year and project completed by mid 2013. This will provide a high-capacity line to remove the bottleneck associated with the existing line which limits the amount of power Ghana can supply CEB.
§ Upgrade of the existing Bolgatanga-Bawku line to 161kV to enable more power to be supplied to northern Togo/Benin. Expected to be completed in 2013.
BENIN
The energy system in Benin being strictly linked to the international agreement and Togo-Benin code on electricity adopted since July 1968 and reviewed in December 2003. The issue of power supply by VRA and interconnections of CEB grids on behalf of Benin as presented by Togo is still topical.
At the end of these presentations, the meeting exhaustively deliberated on the items presented.
Then, the meeting made recommendation to be submitted to the Council of Ministers in charge of energy matters for perusal and submission to the 4th Summit of COPAZ Heads of State and Governments.
2.3.3 RECOMMENDATIONS
After exhaustive deliberation on the country submission the Experts made the following recommendations:
a) On the issue of enhancement of power supply to CEB (Togo/Benin), the Experts expressed their satisfaction over the efforts made by Ghana and Nigeria in spite of the challenges of gas supply to the Takoradi plant and asked that these countries to maintain their efforts at meeting the demand of CEB.
b) The Communiqué of the Heads of State urged Nigeria to study the request of the additional 100mmscf/day of gas for Benin, Ghana and Togo at a later date
The Executive Secretariat of COPAZ was tasked to liaise with the relevant competent authority in Nigeria on the directive of the Heads of States with a view to ensuring its expeditious implementation.
c) The Meeting of Experts recognise the appreciable progress the various interconnection projects between the Member States have achieved and greatly appreciate the efforts of all Countries to the realisation of the objective of pooling energy resources for the development of the zone.
The Meeting however noted that one challenge the projects face is the synchronisation of the two main systems of Ghana and Nigeria.
The Experts noted that under the auspices of the West African Power Pool (WAPP), a study is to be undertaken to come out with amongst others the causes and solutions to that challenge.
On the issue of proposed 330 kV Kainji- Parakou-Kara-Yendi interconnexion, the meeting recommended the appointment of a reputable consultant to conduct feasibility and EIA studies and produce a bankable report for funding.
The following two options were considered for the funding of the studies:
a) Contribution from COPAZ member States
b) External financial institutions
Due to the importance and expediency of the project the Experts recommended contribution from COPAZ member States as the preferred option.
The Meeting therefore recommends to the COPAZ Executive Secretariat to liaise with the WAPP Secretariat to ensure that the Study and the Recommendations thereof are undertaken and implemented speedily to enable the full benefits of the interconnection projects to be realised.
DONE IN COTONOU ON THIS 16TH DAY OF JUNE, 2011
The Chairman
A. DAKENOU
VOTE OF THANKS:
The Experts on Energy from COPAZ member States meeting in Cotonou from 15-16 June, 2011 at Hotel du Port, expressed their deep gratitude to His Excellency. Dr. Boni Yayi, President of the Republic of Benin, the Government and People of Benin for their warm hospitality extended to the participants during their stay.
They also thank the Executive Secretariat for a successful meeting.
DONE IN COTONOU ON THIS 16TH DAY OF JUNE, 2011