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20/10/2023
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FEC on Mpiana Mwanga Power Station highlights ongoing Memorandum of Understanding between Department of Hydropower and Water Resources and AVZ Power”
NEWSECONOMY
For the FEC, it is AVZ POWER which is rehabilitating the MPIANA MWANGA hydroelectric plant, what about the work of COMINIERE excluding the Australians
October 18, 2023
Kiki Kienge
As part of the development of the Manono lithium project in the province of Tanganyika, a joint venture was created by the Congolese State, DATHCOM, of which today the Australians of AVZ MINERALS own the majority of the shares, which notably financed and carry out the feasibility studies which led to the development of the Manono deposit.
The Ministry of Hydraulic Resources and Electricity of the Democratic Republic of Congo, responsible for the MPIANA MWANGA I&II power plant, signed a memorandum of understanding with AVZ POWER SAU, the subsidiary of AVZ MINERALS, on January 13, 2020 with the rehabilitation of these two hydroelectric power stations.
Memorandum of understanding between the Ministry of Hydraulic Resources and Electricity of the DRC and AVZ POWER SAU for the rehabilitation of the power plant.
The MPIANA MWANGA hydroelectric plant, once restored, in addition to providing electricity to the Manono lithium mining project, must in particular ensure the distribution of electrical energy to the population and state infrastructure in this part of the country which suffers enormously from an energy deficit, something which blocks development in the province of Tanganyika.
Let us recall that for the moment the Manono lithium project is stagnating, due to “political implications” and the desire of the Chinese group ZIJIN, which is keen to get its hands on the project regardless of the means used, even at the risk of eject the Australians of AVZ MNERALS from the adventure in the Manono deposit.
Here recently on social networks, more on Twitter, an "uncertified" account in the name of COMINIERE, the state company of the Congolese State on lithium in Tanganyika, shows images and videos of work in progress on the site of the MPIANA MWANGA I&II hydroelectric power station.
This “ongoing” work for the rehabilitation of the MPIANA MWANGA I&II hydroelectric power station raises questions, such as:
The Australian company from Perth, was quick to react to possible work taking place without its knowledge on the site of the MPIANA MWANGA I&II hydroelectric power station, recalling the memorandum of understanding signed with the Congolese Government, which still remains in force. force:
- Who finances this work?
- With what agreement (contract) are they carried out?
- Which companies are involved in this work?
- Is the Congolese Government which owns the plant aware of this and has it authorized this work?
- Why is COMINIERE embarking on this work without waiting for the court's decision on DATCHOM?
“The FEC article on the Mpiana Mwanga Power Station highlights the ongoing Memorandum of Understanding between the Department of Hydropower and Water Resources and AVZ Power, which has completed the DFS for the rehabilitation and all the required technical and environmental studies. » Direction AVZ INTERNATIONAL.
In a publication by the FEC (Federation of Congolese Businesses) for the third quarter of 2023; “Investments in the electricity sector. What is the outcome for private projects? » published last September, confirming the position of the FEC on the right to rehabilitate the MPIANA MWANGA I&II hydroelectric plant, which remains with the Australians of AVZ POWER SAU.
SOME PASSES FROM THE FEC ARTICLE
AVZ POWER, which is developing the rehabilitation project of the MPIANA MWANGA I and II hydroelectric power station for a total capacity of 44 MW in Manono in the Province of Tanganyika. The rehabilitation will begin with MPIANA MWANGA II which has large turbines before the second phase to rehabilitate MPIANA MWANGA I.
The electricity produced by this plant will be used for the exploitation of Lithium by the company DATCOM and part of it will serve the local population.
Rehabilitation of MPIANA MWANGA I&II
PROPERTY TITLES
Mpiana Mwanga I and II belong to the Congolese State according to the provisions of article 52 of Law 14/011 of June 17, 2014 relating to the electricity sector.
AVZ POWER SAU, subsidiary of the international company under Australian law AVZ MINERALS LTD, whose corporate purpose consists of the study and development of projects in the electricity sector such as hydroelectricity, solar power, wind power and thermal energy in the DRC, had, on June 4, 2019, requested the rehabilitation of Mpiana Mwanga by submitting a letter of intent expressing interest to the Ministry of Hydraulic Resources and Electricity.
1. HISTORY
Manono developed from the beginning of the 20th century when Belgian settlers exploited a promising cassiterite deposit, as it was then known to be a cassiterite deposit.
2. Memorandum of understanding
On January 13, 2020, a Memorandum of Understanding (MOU) was signed between the DRC (MHRE) and AVZ POWER SAU.
Objective: rehabilitation of the Mpiana Mwanga I and II hydroelectric power stations in as part of the implementation of the joint venture contract, led by AVZ INTERNATIONAL LTD and signed between them, that is to say, between the companies COMINIÈRE SA, AVZ INTERNATIONAL LTD, DATHOMIR MINING RESOURCES SARL and DATHCOM MINING SA, not only for the exploitation of the lithium mine but also for the electrification of Manono and its surroundings.
The memorandum of understanding stipulated the responsibility of the AVZP to carry out a definitive feasibility study (DFS). AVZP also obtained a baseline Environmental and Social Impact Assessment (ESIA) in September 2020, a prerequisite for proceeding with the DFS.
3.DFS
has. DFS – REHABILITATION OF POWER PLANTS
AVZ Power SAU (AVZP) is working in collaboration with the Ministry of Water Resources and Electricity (MHRE) to secure a concession to renovate and operate the existing Mpiana Mwanga power station to provide electricity to the lithium and of Manono and to the communities of Mpiana Mwanga and Manono.
To date, AVZP has conducted a DFS on the former Mpiana Mwanga facilities and found the following:
b. ENVIRONMENTAL STUDIES ON POWER GENERATION, POWER TRANSMISSION LINES AND ROADS
In accordance with the requirements of the concession application process, AVZP also conducted three ESIAs which were all approved by the Congolese Environment Agency (ACE).
These were awarded by the ACE on November 5, 2020 for:
The ESIA report was approved by the Congolese Environment Agency (ACE).
- Hydroelectric power plant
- 120 kV overhead power line
- 90 km of road repair from Manono to Mpiana Mwanga
4. INTERMEDIATE STEPS IN THE PROCESS LEADING TO THE SFD VALIDATION PROCESS
The CONSISTENT intermediate steps leading to the DFS validation process are listed below:
5. CONSTITUTION OF THE DFS VALIDATION COMMITTEE BY MHRE
- June 21 to July 3, 2019: SG/MHRE and COMINIÈRE SA carry out a joint on-site visit mission through their collective mission orders:
- June 21 to July 3, 2019: SG/MHRE and COMINIÈRE SA carry out a joint on-site visit mission through their collective mission orders...
- January 13, 2020: Signature of a memorandum of understanding between MHRE and AVZ POWER SAU for the rehabilitation of the installations of the Mpiana Mwanga I and II hydroelectric power stations and their outbuildings.
- September 15 to 31, 2020: SG/MHRE dispatched a second mission by service order n°RHE/0/SG/070/B9/SM/2020 carried out by an MHRE expert to support the technical agents of the bidding companies with AVZ POWER SAU as part of technical and environmental assessments.
- November 5, 2020: AVZ POWER SAU obtains three Environmental Certificates from ACE (Congolese Environment Agency) upon favorable opinion from the panel of experts in environmental and social impact studies:
- Environmental certificate No.100/ACE/CM/JCEE/2020 for the rehabilitation of 120kV high voltage power Manono –Mpiana Mwanga.
- Environmental certificate No. 101/ACE/CM/JCEE/2020 for the Manono-Mpiana Mwanga road rehabilitation project, 95 km long, Tanganyika province.
- Environmental certificate No. 102/ACE/CM/JCEE/2020 for the rehabilitation project of the Mpiana Mwanga I and II power stations with a potential production capacity of 44.4 MW in Mpiana Mwanga, Tanganyika province.
- December 23 to 10, 2020: SG/MHRE dispatched a third mission by service order no. RHE/4/SG/0/114/B9/SMW/2020 carried out by experts from COMINIERE SA and AVZ POWER SAU for a complete assessment for the planning of rehabilitation works.
- December 14, 2020: Request by the company AVZ POWER SAU to convene a Joint Technical Committee to examine the file relating to the award of the concession contract for the rehabilitation of the Mpiana Mwanga I and II hydroelectric power stations.
- January 29, 2021: Signature of Ministerial Order No. 129/CAB/MIN/RHE/EMM/2021 of January 29, 2021, by His Excellency the Minister of State, Minister of Hydraulic Resources and Electricity creating the Committee Monitoring Technique for the Rehabilitation Project of the Mpiana Mwanga I and II Power Plants.
- February 27, 2021: Convocation by the SG-MHRE by its reference letter No. RHE/SG/0/0327/D9/SM/2021 of an ad hoc committee of multisectoral and multidisciplinary experts for the analysis and validation of feasibility studies of the Mpiana Mwanga I and II hydroelectric power stations.
- March 22, 2021: By his letter no. CAB/MIN/RHE/BMP/209/AAM/21, His Excellency the Minister of State, Minister of Hydraulic Resources and Electricity after validation of the studies by the ad hoc committee of multi-sectoral experts, authorized AVZ POWER SAU to continue work on the Mpiana Mwanga I and II site taking into account its recommendations.
According to the MoU, the DFS was to be submitted to the MHRE along with ACE certificates of ESIA reports on power generation, power lines and roads.
Following this submission, a validation committee was formed by the MHRE composed of representatives
of the following institutions:
• Advisor in charge of hydroelectricity at MHRE
• Advisor in charge of solar and wind energy to MHRE staff
• Advisor in charge of finances for MHRE staff
• Advisor in charge of training MHRE staff
• Director – Head of Electricity Department of the MHRE General Secretariat
• Director – Head of the Renewable Energy Department of the General Secretariat
of the MHRE
• Single division head of the MHRE General Secretariat
• Rural Electrification Division Head of the MHRE General Secretariat
• Head of the Distribution Division of the General Secretariat of the MHRE
• Head of the Renewable Energy Division of the General Secretariat of
MHRE
• Expert from the NATIONAL ENERGY COMMISSION (CNE)
• Expert from the UNIVERSITY OF KINSHASA (UNIKIN)
• Expert from the HIGHER INSTITUTE OF APPLIED TECHNIQUES (ISTA)
• Independent expert
6. THE DFS VALIDATION COMMITTEE BY MHRE
COMMISSION’S WORKING METHODOLOGY
• Presentation of the report by the representative of the Consortium
• Free reading and criticism, by expert, of the DFS report (scientific and technical opinions and considerations)
• The entire 120KVA overhead line will be replaced with new aluminum and OPGR cables using modern insulation technology.
• Pooling of opinions and reflections of experts from the DRC made up of scientific discipline sectors (hydrology and geotechnics, electromechanics and electricity, social and environmental protection,
economic and financial aspects)
• Debate and exchanges with the Consultant's panel of experts on each concern expressed by the DRC experts.
• Preparation of the report confirming the end of the validation work.
AVZP fulfilled all requirements in accordance with the DRC Electricity Law 2014 and its secondary legislation, to obtain the concession contract. AVZP will be integrated into a PPP collaboration agreement which was under review by the DRC government.
7. THE EXPANSION CONCESSION AWARD PROCESS
The authorization to continue the stages of implementation of the works on the Mpiana Mwanga I and II site being granted by His Excellency the Minister of State, Minister of Hydraulic Resources and Electricity, only the signature by His Excellency will remain.
Excellency the Governor of the Province of Tanganyika of the document of the
concession of the Company AVZ POWER SAU in order to comply with the requirements of articles 47, 74, 75 and 76 of Law 14/011 of June 17, 2014 relating to the electricity sector.
The process of awarding the concession for the operation of the Mpiana Mwanga power stations to begin the financing and execution of the renovation of MM I and II has not yet materialized due to the interference of Cominière although the final use of electricity is to power the mine and the surrounding area of Manono.
AVZ POWER SA has excluded itself from distribution outside the mining enclosure.
Pour la FEC, c'est AVZ POWER qui réhabilite la centrale hydroélectrique de MPIANA MWANGA, quid des travaux de la COMINIERE excluant les australiens - Kongo Presse
AVZP a rempli toutes les exigences conformément à la Loi de 2014 sur l’électricité de la RDC et à son droit dérivé, pour obtenir le contrat de concession. AVZP sera intégré dans un PPP à l’accord de collaboration qui était en cours d’examen par le gouvernement de la RDC.
kongopress.com
