NYAMAGASANI I + II
Run-of-river SHP with a planned installed capacity of 15 MW and 64 GWh in annual production, located in the Kasese district. The Project secured investments of USD 36.7M, with USD 9.4M in GFPPM commitments. The Project experienced substantial delays during 2017, in part due to changes in design, which included relocating the intake at the weir site and the first few hundred metres of headrace waterway, where there is particularly challenging terrain. Having finally achieved financial close at the end of Q4, however, the Developer plans to substantially scale-up resources and construction operations early during 2018.
The EPC Contractor for the Project is also constructing the Nyamagasani II SHP – the second cascade of schemes in the portfolio – and therefore benefits from sharing facilities and resources across both Projects, such as the main construction yard and construction plant. The Contractor also has the benefit of sharing the bespoke penstock workshop established for the Lubilia SHP for the purpose of sandblasting and applying protective coatings to the pipe sections. Nonetheless, the Project will face many logistical challenges during 2018 with respect to being able to deliver, install, weld, and apply protective coatings to the nearly 5 km of steel pipeline – the second longest waterway in the portfolio!
Construction commenced during Q1 2017 and the Developer is aiming for commercial operation during Q4 2018. However, given the size of project structures and the challenging nature of the site and construction programme, a COD during Q1-Q2 2019 appears more realistic.
One of the key challenges for the Nyamagasani projects is the timely implementation of the power evacuation infrastructure, which is being implemented by REA, and will include the construction of a new 33 kV evacuation line. The procurement of an EPC Contractor for line construction was substantially delayed during 2017 and is now expected to conclude in January 2018. Line construction is expected to commence in Q1 2018, with an optimistic completion date estimated in March 2019. Further delays in concluding the procurement of an EPC Contractor and in implementing the infrastructure will substantially increase the risk of deemed energy for these projects.
Run-of-river SHP with a planned installed capacity of 5 MW and 25.5 GWh in annual production, located in the Kasese district just downstream of the Nyamagasani 1 SHP. The Project secured investments of USD 19.8M, with USD 3.7M in GFPPM commitments. Similar to the Nyamagasani I SHP, the Project experienced substantial delays during 2017, in part due to changes in design, which included changing the location of the intake to the right bank to avoid the need for a siphon across the river. The form of penstock was also changed from steel to GRP pipes, which has the benefit of substantially reducing competing pressures on skilled welders that are shared across the two Nyamagasani Projects. This is important given the remaining timescale available for construction within the GET FiT window.
The Developer plans to substantially scale-up resources and construction operations early during 2018, having finally achieved financial close at the end of Q4. The Contractor also has the benefit of sharing the concrete batching plant, which has been established to supply concrete to both Nyamagasani projects. Construction commenced during Q1 2017 and the Developer is aiming for commercial operation during Q4 2018. Many of the challenges, key programme dates, and ambitious construction programme are similar to the Nyamagasani I SHP and, therefore, a COD during Q1-Q2 2019 appears more realistic. The Nyamagasani projects will share the power evacuation infrastructure and, therefore, as for Nyamagasani I SHP, there is a real risk of deemed energy for this Project once the COD is achieved.