The local Kipay Energy has signed a project preparation facility financing agreement with the African Export-Import Bank (Afreximbank) for the 200MW Sombwe hydropower project in the Democratic Republic of Congo (DRC).

The scheme is situated on the Lufira River, 30km downstream from the Kiubo Falls in southern DRC and nestled deep within the copper belt mining region in the north of the Haut Katanga province.

Kipay Energy will develop, design, construct, install, commission, operate and manage the reservoir-based facility over 30 years.

In partnership with the firm, Afreximbank will finance the technical and bankability studies, legal, financial advisory and fundraising costs for the development of the Sombwe plant. The bank will also lead the structuring of the captive power project’s debt financing, with a total investment cost estimated at upwards of US$500 million.

The Sombwe scheme will entail the construction of a 94-metre-high roller compacted concrete arch gravity dam wall to impound a reservoir that can store approximately 320 million cubic metres. The construction period is envisaged to be four years.

The project will also see the construction of a 205km 220kV transmission line linking the plant to the Fungurume substation, enabling a connection to national utility SNEL’s network.

The power generated is to be supplied to mining companies, enabling the beneficiation of minerals such as copper and cobalt within the DRC. The facility will also expand electricity access to about 100,000 homes in the nearby community and enhance supply to education and healthcare facilities.

The Sombwe project is planned to include a photovoltaic (PV) solar component set to generate 46MW, which will supplement demand during the dry season, particularly during low water level conditions. The environmental flow is also aimed to form part of an electrification project aimed at empowering local communities within the vicinity.

The plant will sit downstream from two operational hydro facilities – the 42MW Koni and 78MW Mwadingusha plants.

Upon completion, the Sombwe scheme is expected to facilitate the creation of over 2,000 direct jobs and 952 potential indirect jobs, as well as augment fishing and other economic activities on the reservoir. Other envisaged benefits include the realisation of tax revenues to the DRC government over the project’s duration and the development of industrial clusters around the mining area.

The project marks Afreximbank’s first private sector renewable energy initiative in the DRC.

“Afreximbank is committed to supporting the DRC’s energy transition, enhancing the country’s energy security whilst leveraging its vast renewable energy potential to develop sustainable trade-enabling energy infrastructure,” said Kanayo Awani, executive vice-president of intra-African trade and export development at Afreximbank.

“This financing reinforces Afreximbank’s commitment to mobilising private capital to develop renewable energy projects and secure a sustainable future for DRC and the region. We are also proud to highlight the innovative structure deployed that encompasses a captive market that enhances the project’s bankability.”

The scheme's technical feasibility studies were carried out by global consulting firm Knight Piesold and France's Ingerop.

The DRC is estimated to hold 50% of Africa's waters and 6% of the world's waters. The Central African country has a hydro potential of 100,000MW, of which only 2.5% is currently operational.

As of late August, the DRC had 2,800MW of installed capacity and power demand was at 5,250MW while overall supply was 2,100MW.

Kipay Energy is also working on the 48MW Fungurume solar scheme in the Lualaba province. A local team of Smart Congo, LBK and EKMM began work in December 2022 on the project, which is being constructed in phases. It is expected to become the largest PV plant in the DRC and the first in Central Africa to use tracker technology.

 Top photo: Kiubo Falls in DRC (Source: Knight Piesold)