Kenya signs infrastructure, energy deals worth US$5 bln with China

On 19th August 2013, Kenya signed deals worth US$5 billion with China to construct a railway line and an energy project, deepening ties with the Asian country keen to expand investment in Africa.

The cash would be spent on energy projects, a standard gauge railway linking the port of Mombasa in east Africa's biggest economy to its border town of Malaba, meant to provide faster access from Kenya's port to markets in the region, the presidency's media service said in a statement on Monday.

The rest would be used to improve wildlife protection, in a country where well armed criminal gangs have killed elephants for tusks and rhinos for their horns that are often shipped mainly to China for use in ornaments and medicines.

It was not specified whether the cash was a loan or grant, or whether this was all new money or part of a previously negotiated but unannounced package.

The deals were agreed in Beijing after talks by Kenya's new President Uhuru Kenyatta and President Xi Jinping. 

During his first visit to Africa in March, Xi pledged to help the continent develop, responding to concerns that China is only interested in shipping out the continent's raw materials.

China is already key player in Kenya, constructing capital-intensive flagship projects, mostly roads.

Kenyatta's visit follows a promise he made during the presidential election campaigns preceding the March 4 vote.

On 19th August, Xi said China supports Kenya's quest for industrialization and plans to host a clearing house for the Chinese renminbi currency in Nairobi, as part of Kenya's plans to become an international financial hub.

Kenyatta urged China to invest in Kenya's newly discovered oil sector, power generation, a technology city near the capital city and a new port in Lamu, north of Mombasa.

The US$25.5 billion Lamu project would link landlocked South Sudan and Ethiopia to the Indian Ocean port of Lamu by constructing a major highway, a railway and an oil pipeline. 

(Writing by James Macharia; editing by Ron Askew)

Tanzania anticipates fivefold increase in gas reserves by 2015

"It is expected that Tanzania's natural gas resources will rise to 200 trillion cubic feet after the next two years," the energy and minerals ministry said in a statement.

Discoveries offshore of Tanzania and Mozambique's waters have led to predictions the region could become the world's third-largest exporter of natural gas, with the country strategically located for exports to Asia.

The country's energy ministry said on Wednesday that oil and gas exploration activities were being carried out offshore, along the coastline, lakes and on onshore blocks.

Tanzania has previously estimated it has 43.1 tcf of recoverable natural gas reserves, most of it found offshore south of the country.

Tanzania's minister for energy and minerals, Sospeter Muhongo, announced in May exploration companies planned to drill 17 new wells in the country during the 2013/14 (July-June) fiscal year at a cost of at least US$680 million.

Tanzania has currently licensed 16 international energy companies to search for oil and gas.

British gas firm BG Group, Norway's Statoil, Brazil's Petrobras, Royal Dutch Shell and Exxon Mobil Corp are among companies already operating in Tanzania.

The country plans to offer seven deep offshore blocks and one onshore block in October for oil and gas exploration, with the potential of making more high-impact gas finds.

Tanzania to start gas related power exports in 2015

Tanzania, which has made big natural gas discoveries, plans to start power exports to its energy-starved east African neighbours in 2015 after the completion of a gas pipeline.

East Africa's second-biggest economy said the pipeline, funded by a US$1.2 billion Chinese loan, would be completed by December 2014 enabling the country to double its power generation capacity to 3,000 MW.

Energy and minerals minister Sospeter Muhongo said Tanzania, which currently imports around 14 megawatts of electricity from its neighbours and suffers from chronic energy shortages, was poised to become a net power exporter within the next two years.

"We are on course to start power exports in 2015 because of the surplus electricity that we will be producing after the completion of the ongoing pipeline construction," Muhongo told reporters late on Saturday after inspecting construction of the 532 km pipeline on the outskirts of Dar es Salaam.

He said Kenya had made enquiries about importing some 1,000 megawatts of electricity from Tanzania.

Tanzania has 43.1 trillion cubic feet of recoverable natural gas reserves and anticipates that will rise fivefold within the next two years if new finds prove productive.

In July the country also revised its coal reserves to 5 billion tonnes from about 1.5 billion tonnes, and said it plans to use coal and gas for power generation.

Muhongo said Chinese firms had recently shown interest in Tanzania's oil and gas sector and were expected to bid for blocks in its October oil and gas exploration bid round.

Tanzania has so far licensed 16 international energy companies to search for oil and gas. British gas firm BG Group , Norway's Statoil, Brazil's Petrobras, Royal Dutch Shell and Exxon Mobil Corp are among companies already operating in Tanzania.

Source: Reuters

Conferences, Seminars, Workshops

           Cost On-grid Electrification Technologies

September 3 - 4, 2013, Arusha, Tanzania

This workshop is being organized through the Africa Electrification Initiative (AEI), a collaboration between the Energy Sector Management Assistance Program (ESMAP), the Africa Renewable Energy Access Program (AFREA), the EU Energy Initiative Partnership Dialogue Facility, the Forum of African Energy Ministers (FEMA), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the Energizing Development Partnership (EnDev) and the World Bank.

For more information please visit Web site: http://www.euei-pdf.org/thematic-studies/low-cost-on-grid-rural-electrification

Mini-Grids Opportunities for Rural Development in Africa

September 5, 2013, Arusha, Tanzania

This workshop aims to discuss: experiences on mini-grid technology application in Africa; deployment success factors; recommendations and tools to improve policy and regulatory frameworks; experiences on best practices; and successful project development processes and operation. The workshop aims to attract: decision-makers from public authorities; technical staff and practitioners from public authorities; advisors, regulators, engineers and representatives from standards authorities; private sector project developers; local business associations; civil society; and development partners. 

The workshop is an initiative of the Africa-EU Renewable Energy Cooperation Programme (RECP), in collaboration with the Africa Electrification Initiative (AEI), the Rural Energy Agency (REA) Tanzania, the World Bank, and the European Union Energy Initiative - Partnership Dialogue Facility (EUEI PDF).

For more information please visit Web site: http://www.ren21.net/Portals/0/documents/Events/Announcement%20of%20RE...

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