Copperbelt Energy Corporation
Belting out
powerful solutions
Copperbelt Energy Corporation
Belting out
powerful solutions Copperbelt Energy Corporation is going from strength to strength with a number of lucrative energy and telecommunication schemes on its books Written by: Sheree Hanna and produced by: Nick Norris >>>
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ambia-based power supply company Copperbelt Energy Corporation (CEC) is going through an exciting period with a number of lucrative projects in its pipeline. CEC is split into two divisions, one that carries on the core business of bulk electricity transmission and distribution, and the other which is focused on identifying and developing new business projects, both in Zambia and Sub-Saharan Africa, and includes telecommunications. The company develops, owns and operates power infrastructure, and accounts for about 50% of power consumed in Zambia. It operates around 900 kilometres of 220KV and 66KV transmission lines, an
interconnector between Zambia and the Democratic Republic of Congo, 42 major substations and 80MW of gas turbine generation. One of the major schemes the company is working on is the US$200 million Kabompo Gorge hyrdro-electric project in North Western Province of Zambia which involves the construction of a dam that is 47.5 metres high and 123m long, a reservoir with an area of 3,485 hectares, an underground chamber for the power house and four kilometres of tunnelling. A transmission line will also be constructed to connect to the national grid. Michael Tarney, Managing Director of Corporate Development, said: “The scheme is near to financial close, it has taken a long CEC Central Switching Station
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Copperbelt Energy Corporation Belting out powerful solutions
time to get all of the necessary environmental approvals due to the size of the project, but we have now moved onto site to prepare the township area where workers will be housed, and we expect to reach full financial close later in 2013”. CEC is also completing feasibility studies on five further separate schemes with an estimated generation capacity of 800 MW along the Luapula River, which is on the border with the Democratic Republic of Congo. He said: “These schemes give us the challenge of dealing with governments to agree the principles for the development of the schemes, but that is part of the feasibility study process. We are working with both governments and mining Hanson Sindowe, Executive Chairman
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companies in the Democratic Republic of Congo and Zambia who are interested in buying the power.” Tarney revealed CEC was looking at a number of other power projects in Zambia and in West Africa where a number of opportunities have been identified. He said: “It is too early to announce them yet but we see potential in a number of other countries apart from Zambia.” Successful bidder However, CEC has been successful in its bid to take a bite of Nigeria’s power sector which is undergoing a multi-billion dollar privatisation process to improve its efficiency and has since split Power Holding Company of Nigeria’s distribution assets into 11 different units to be operated under private management, selected through a process of international competitive bidding. He said: “We are the preferred bidder for the Abuja Electricity Distribution Company which covers the Federal Capital of Abuja as well as Niger, Kogi and Nasarawa States in Central Nigeria. We will acquire 60 percent of the distribution company in accordance with a Sale and Purchase Agreement that was signed in Abuja on 21st February 2013, with the Government retaining
leading provider of last mile fibre connectivity to the key commercial and residential sectors in Zambia. CEC Liquid has constructed three international fibre links, two in the south connecting through to Zimbabwe and one in the north connecting through to the Democratic Republic of Congo. CEC Liquid provides the network for another joint venture company of CEC, Realtime that provides the customer service interface for the majority of CEC Liquid’s customers. Tarney said: “We have invested in a new venture which is for laying — Michael Tarney, Managing fibre throughout the country, some Director of Corporate Development of it is on our power lines, but most of it is buried underground. We have set up a joint venture with Liquid a 40 percent share. The project Telecom and currently the turnover is being undertaken as a Joint from our telecoms business has Venture with XerXes, a Nigerian increased to more than $15 million a investment company.” year in revenue.” “CEC has been through the The total fibre network in process of privatisation itself some operation is in excess of 2,000km 15 years ago so it has learned some and has been extended to cover lessons which can be applied in towns, such as Livingstone, Kabwe Nigeria, where there is a need to and Solwezi. The main customer increase efficiency and investment, improve customer service and reduce base for the fibre is the banks, mining companies, mobile service losses due to electricity theft.” providers and internet service providers that operate in Zambia. Connecting the country “There is strong demand for fibre CEC has also formed a joint venture from these and other sectors and with Liquid Telecom under the brand name of CEC Liquid to be the the business is expected to grow
CEC has been through the process of privatisation itself some 15 years ago so it has learned some lessons which might be useful in trying to help the Nigerians with this privatisation scheme”
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Copperbelt Energy Corporation Belting out powerful solutions
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steadily in the foreseeable future,” added Tarney. Other projects include a $200 million heavy fuel oil generation plant in Namibia which will supply 120MW to NamPower, to be situated close to the town of Arandis. Solar power CEC has developed a renewables arm and is looking at a number of renewable technologies, including solar and bio-mass generation. Tarney said: “We are quite bullish on the future of solar energy. The capital costs have reduced significantly, they can be implemented quickly, there is abundant solar resource in Africa and 6
CEC control room they are generally low in maintenance. The government is advertising a number of sites which we are quite interested in bidding for”. “We see solar as being a good generation source in Zambia and other countries and we are looking to invest in projects of up to 50 MW.” Prospects for 2013 CEC’s most established business remains its network for supplying power to the mines in the Zambian Copperbelt. Copper prices fell when the recession hit in 2008/09 and for about a year things were a little uncertain, said Tarney. There have been a number of changes to ownerships of mines, with some of the smaller ones being sold off to larger companies. “We have seen a lot of new
STATISTICS
Industry: Power Founded: 1997 investment come into the Copperbelt,” he said. “Companies such as African Rainbow Minerals, which has started up a new mining operation and Vedanta, which is continuing to expand and produce a lot more copper than they used to. Then we have the Chinese-owned mines which have also expanded rapidly.” “Copper prices have held up pretty well through the global economic crises and I don’t think we have really noticed any recession in Zambia. We are very happy to be where we are and not just in Zambia, generally economies in Sub-Saharan Africa are improving and there is a requirement for significant investment in the power sector by companies such as CEC to satisfy customer demand.”
Headquarters: Zambia Key People/Titles: Michael Tarney - Managing Director of Corporate Development Products: Power supply Revenue: Not disclosed Employees: 388 Website:
www.cecinvestor.com
Visit us online:
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Copperbelt Energy Corporation Copperbelt Energy Corporation PLC P.O. Box 20819 Plot No. 3614 23rd Avenue Nkana East Kitwe Zambia Tel: +260 212 244556 Fax: +260 212 244040 info@cecinvestor.com www.cecinvestor.com
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