Investment Opportunities

Transcription

1 Republic of Angola Ministry of Energy and Water April 2014 MINEA 0

2 Agenda 1 Angola - Country in Development 2 Electricity Industry Dynamics and 3 Water Industry Dynamics and 4 Summary of MINEA 1

3 Agenda 1 Angola - Country in Development 2 Electricity Industry Dynamics and 3 Water Industry Dynamics and 4 Summary of MINEA 2

4 Angola a Country of Opportunities Factbook Angola offers today an excellent investment prospect as the economy continues to grow 7% annually. Factbook Population 1 : ~20.8 M GDP 2 : $114.1 billion Agriculture 3 : 10.2% Industry 3 : 61.4% Services 3 : 28.4% External Public Debt 4 : 17,1% Oil industry represents 5 : 47% of GDP 80% of government revenues 90% of exports Capital: Luanda (population 5.2 M) Life expectancy 6 : 51 years Population median age 7 : 18 years Currency: Kwanza Sources: 1 World Bank, World Bank, 2012 current prices 3 CIA World Factbook, 2011 est. 4 OGE2014 -Ministériodas Finanças, African Economic Outlook, Banco Mundial, CIA World Factbook, 2011 est. Angola growth perspectives for the coming years outpaces those of other relevant peer countries GDP Growth (according to World Bank) 10,0 8,0 6,0 4,0 2,0 0,0 5,1 8, Middle East and North Africa Sub-Saharan Africa regional Angola 7,3 Source: Banco Mundial, 2013 Latin America and the Caribbean South Asia Angola to Raise Power Output Fivefold to Attract Investors Angola [] plans to build hydroelectric plants to boost power generation fivefold in a bid to attract investment in other industries to the country. The goal is to have an installed capacity of 9,000 megawatts of generation capacity by 2025 compared with about 1,800 megawatts now Bloomberg.com 7,0 MINEA 3

5 Agenda 1 Angola - Country in Development 2 Electricity Industry Dynamics and 3 Water Industry Dynamics and 4 Summary of MINEA 4

6 Angola a country of opportunities Electricity and Income Correlation Angola believes that access to electricity is key to economic growth and country development, benefiting the overall population's standard of living and welfare. Electricity and Income Correlation Electrification rate Angola aims to double its electrification rate until 2025 and equal that of reference countries 100% 90% 80% 70% Middle East and North Africa 2600 KWh per capita Latin America and the Caribbean 1900 KWh per capita 60% 50% 40% 30% 20% 10% Sub-Saharan Africa 552 KWh per capita Angola 2010: 247 KWh per capita Angola 2025 Increase electrification to 60% World: 2900 KWh per capita GDP per capita ($) Source: World Bank, 2010 Legend: The diameter indicates average energy consumption per capita MINEA 5

7 Electricity Industry Dynamics and 2025 Goals The guidelines were established by the government, reinforcing the importance of electricity and allowing for external investments to achieve major development goals in the sector Goals Ensure and Increase Electricity Supply Industry Competitiveness System Sustainability Increase the electricity rate from 30% to 60% Quadruple generation capacity from current ~2.000 MW to ~9.500 MW in 2025 Extend more than km of lines and substations in the transmission grid, and establish international interconnections Rehabilitate distribution networks, adding more than 1,5 million consumers Improve the efficiency of public companies Implement a new market model that allows for cost reductions Develop a new regulatory model encouraging efficiency Reduce tariff subsidization Develop an optimal generation mix, making better use of Angola s natural resources Develop the capabilities of the local workforce MINEA 6

8 Electricity Industry Dynamics and Assure and Increase Electricity Supply Industry Competitiveness System Sustainability To successfully achieve the proposed goals in the energy sector a large amount of investment is necessary in generation assets and grid infrastructures. Installed capacity GW Transmission grid Kilometers # Consumers Millions 10,0 8,0 6,0 x4 8,9 GW 9,5 GW 0,43 0,78 1,50 1, ,0 2,5 2,0 x3 2, ,5 4,0 6,88 6, X1,5 1,0 1,2 2,0 2,0 GW 1, ,5 0,8 0,0 0, , Other Renewables Conventional Thermal Combined Cycle Hydro Quadrupling generation capacity is a key pillar for electrification andsupply security A significant investment extending transmission lines to connect the new generation and unify the three transmission systems The expected growth in generation is followed by the extension of the distribution network and consumer base Sources: Data 2012 MINEA Expanded Council Board; Financial Reports ENE e EDEL; Estimated data PSEA, 2009 MINEA 7

9 Electricity Industry Dynamics and Assure and Increase Electricity Supply Industry Competitiveness System Sustainability Angola is managing large, concurrent infrastructure developments, carefully planned to take advantage of Angola's unique national resources natural gas, hydro, wind and solar CABINDA ZAIRE CONGO UIGE North System SIMPLIFICATION How to take advantage of Angolan natural resources LUANDA BENGO Center System BENGUELA K. NORTE MALANJE SE. Cambambe* K. SUL HUAMBO SE. Capanda elevadora L. NORTE East System L. SUL MOXICO Benefit from the hydro potential of Kwanza river Laúca and Caculo- Cabaça Install combined cycle gas turbines, partnering with Sonangol/ Angola LNG National integration of transmission systems HUILA International interconnection with Namibia and Congo NAMIBE South System CUNENE NAMIBIA K. KUBANGO Grid connections until 2025 Rural electrification with distributed renewables sources MINEA 8

10 Electricity Industry Dynamics and Assure and Increase Electricity Supply Industry Competitiveness System Sustainability To achieve the aforementioned goals, Angola defined an ambitious 23B investment plan. A 12,11B program lasting until 2018 is already in execution. Electricity Project Portfolio Billion Total portfolio: $US 22,92B On-going and scheduled projects (PIP) Billion Projects Cost ( B) End by G,T Laúca hydroelectric (2.000 MW) 3,87 Aug G,T Combined cycle gas in Soyo (750 MW) and associated transmission grid 2,89 Dec ,81 billion 12,11 billion G,T Cambambeheightening and 2nd generation group (700 MW) 1,52 Nov G Construction of thermal powerplants 0,67 Dec T Transmissiongrid extension and modernization of current substations (grid automation) 1,01 - On-going and scheduled projects (PIP) Projects in pre-analysis Fontes: MINEA, 2013, 2014 estimations D Distribution grid extension and residential connections 0,69 - G,T,D Other projects 1,37 - Total 12,11 - MINEA 9

11 Electricity Industry Dynamics and Assure and Increase Electricity Supply Industry Competitiveness System Sustainability From 2011 to the end of 2014 Angola is expected to employ 5,32 billion and is currently seeking to attract private partners to share the efforts and rewards of the remaining investments ( 17,6B). Electricity Project Portfolio Funding Billion Total portfolio: $US 22,92B B Funded 5,32B 3.08B 2.24B MINEA and the Angolan Government are already associated with recognized prestigious financial institutions and providers in the electricity sector, with proven management capabilities Financial Institutions Energy, Technology and Infrastructure companies EXAMPLES 6.80B To-be funded 17,6B Public funding External funding On-going and scheduled projects to-be funded Projects in pre-analysis to-be funded MINEA 10

12 Electricity Industry Dynamics and Assure and Increase Electricity Supply Industry Competitiveness System Sustainability The Electricity Sector Transformation Program (PTSE) seeks to improve efficiency by unbundling activities and a new market regulation that allows private participation. Public Companies Restructuring Market and Regulation Models Value Chain Current Status Future Organization Allow Private Generation Generation Transmission Private Investors Generation National Company Private Investors Transmission National Company Establish a Single Buyer to purchase all energy generated Power Purchase Agreements negotiated by Single Buyers with generation companies Distribution and Customer Operations Regulator Municipalities Distribution National Company Private Concessions Incentives and liberalization in generation and distribution, with private players Tariffmodel design to promote energy efficiency to project poorer consumers Engineering Engineering Office (for strategic projects) Progressive outsourcing of services (engineering, maintenance, construction) Develop service quality improvement MINEA 11

13 Electricity Industry Dynamics and Assure and Increase Electricity Supply Industry Competitiveness System Sustainability The social, economic and environmental sustainability is the third building block for development in the Angolan electricity sector. Economic Sustainability Establish new electricity market conditions Reduce governmental tariff subsidization Develop regulation capabilities to promote efficiency Management professionalization Social Sustainability Expand rural electrification, boosting growth and development in these regions Ensure long-term sustainability and independence of local capabilities Deliver results to society in the short term Environmental Sustainability Adopt a better installed capacity mix focused on Angola s natural resources Choose thermal powerplant technologies with reduced CO2 emissions Develop pilot projects to expand renewable energies Promote electricity efficiency with mass installation of prepayment meters MINEA 12

14 Agenda 1 Angola - Country in Development 2 Electricity Industry Dynamics and 3 Water Industry Dynamics and 4 Summary of MINEA 13

15 Water Industry Dynamics and Angola has defined an ambitious plan to bring water and sanitary services to most of its population. Goals Widespread access to water supply and sanitation Increase access to water 100% of urban population 80% of rural population Increase sanitization and sewerage coverage 85% of urban population 65% of rural population Improvement of operations and quality service Significant increase in water consumption: Additional 70 liters/per capita/day in urban areas Additional 30 liters/per capita/day for rural areas Decrease of around 25% in water loss through the network Rehabilitation and expansion of water supply systems and wastewater treatment Adequate and sustainable use of national water resources Balancing the availability of water resources and consumer demand Implementation of an integrated water resource management in at least half of the water basins MINEA 14

16 Water Industry Dynamics and To successfully achieve the proposed goals in the water sector large investments are necessary in both water supply and sanitation assets. Water supply points Number Angola population access to water supply 100% Angola population access to sanitation 100% % 80% x1,6 60% 60% x2, % 20% 0% 100% 80% 63% 66% 36% 35% +78% % 20% 0% 83% 85% 85% 65% +44% 17% 19% Small water distibution systems Fontains and water wells Rural Water Supply Urban Water Supply Rural Sanitation Access Urban Sanitation Access Source: Plano Nacional de Desenvolvimento , MPDT, 2012 Source: World Bank Source: World Bank MINEA 15

17 Water Industry Dynamics and Current Situation, Challenges and Evolution Evolving the Water Industry is key in order to enhance the health of the population and living conditions. A number of initiatives are being launched by MINEA to improve the current situation. Industry current status Future evolution Urban water resources Rural water resources Establish a Water Industry regulator Ministry MINEA Restructure theepal company and aggregate other small-scale suppliers EPAL (Luanda) EASB (Benguela) EASL (Lobito) Other Public Provincial Companies Increase the population saccess to clean water Service Provision Municipalities (Benguela, Uíge, Cunene, Huambo, Huíla, Outras) Local governments Develop a strategic plan for rural water supplywith new management models Improve service delivery and cost recovery in Urban Water Supply Small-scale independent providers User groups Increase regular performance monitoring Regulator In development Develop a sustained and common sanitation policy and strategic plan MINEA 16

18 Water Industry Dynamics and Access to Water and Sanitation Operational and Quality Improvement Hydro Resources Utilization Angola defined a Water Project Portfolio of 5,95B to execute until the end of Projects worth 4,36B focusing on the expansion of water supply distribution systems have already been planned Water Project Portfolio Billion Total portfolio: $US 5,95B ,59 billion 4,36 billion On-going and scheduled projects (PIP) Projects in pre-analysis On-going and scheduled projects (PIP) Billion Projects Cost ( B) End Water for All Program 1,05 Feb Luanda Water Distribution System (system 4) 0,51 Dec Quilongawastewater treatment station and associated distribution system Rehabilitation of CaluequeDam and construction of a new pumping station 0,30 Dec ,26 Mar New water supply systems for every municipality 0,20 Dec Implementation of residential connections 0,16 Dec Expansion ofbenfica, Maiangaand Viana water reservoirs 0,14 Dec Rehabilitation of Lubango's water supply systems 0,13 Dec Rehabilitation of Huambo's water supply systems 0,12 Dec Other projects 1,60 - TOTAL 4,36 - Fontes: MINEA, 2013, 2014 estimations MINEA 17

19 Water Industry Dynamics and Access to Water and Sanitation Operational and Quality Improvement Hydro Resources Utilization The total investment for on-going and scheduled projects, from 2011 until the end of 2014, will be 2,2B. Angola will need 3,73B of capital investment for the remaining years Water Project Portfolio Funding Billion Total portfolio: $US 5,95B Funded 2,22B 1.59B 1.36B To-be funded 3,73B 2.15B 0.86B Public funding Private funding On-going and scheduled projects to be funded Projects in pre-analysis to-be funded MINEA 18

20 Agenda 1 Angola - Country in Development 2 Electricity Industry Dynamics and 3 Water Industry Dynamics and 4 Summary of MINEA 19

21 Summary of Investment Opportunities In total, from 2011 to 2014, Angola has already invested 7,53B, 41% from external financing. The country is now evaluating alternative financing models for additional 21,34B Electricity Project Portfolio Funding Billion Total portfolio: $US 22,92B Water Project Portfolio Funding Billion Total portfolio: $US 5,95B Total Funding Billion Total portfolio: $US 28,87B B Funded 5,32B 3.08B 2.24B 6.80B 1.59B 2.15B 1.36B Funded 2,22B 0.86B Funded 7,53B + To-be funded 21,34B To-be funded 17,6B To-be funded 3,73B Legend: Public funding Private funding On-going and scheduled projects to-be funded Projects in pre-analysis to-be funded MINEA 20

22 Thank you Contacts Address: Ministério da Energia e Águas Edifício da EDEL Avenida Cónego Manuel das Neves, n 234 Sambizanga, Luanda, Angola MINEA 21