Sub - Saharan Africa Projects

September 2012

Sub-saharan Africa Projects Newsletter September 2012 · www.roedl.com/it

Index: How to use the Newsletter > > > > > > > > > > > > > > > > > >

Angola Botswana Burundi Cameroon Congo (DR) Gabon Ghana Guinea Kenya Lesotho Malawi Mauritania Mozambique Namibia Nigeria Somalia South Sudan Tanzania Zambia

How to use the Newsletter 1.

The newsletter provides information on projects in Sub-Sahara Africa from different official sources (World Bank, IFC, Afdb, AIB, EU, National Governments, Africa Project Access etc.)

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For the projects included in the newsletter kindly contact Rödl & Partner (tel. 049 8046911; fax: 049 8046920; e-mail: [email protected]; [email protected];) who will be able to provide additional information on the projects.

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An additional service pertains to additional detail on the Project itself. If a subscriber is particularly interested in a specific Project and feels that additional detail is required, he or she is welcome to contact Rödl & Partner. It should be remembered that the most important factor is to be able to apply for a project in the most timely manner.

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Sub - Saharan Africa Projects > Angola > Description & location: Angola: Caio Deepwater Port, Northern Cabinda. > Sector: Ports/Transport/Infrastructure. > Stage in project cycle: Early implementation. > Details: The new Caio Deepwater Port in northern Cabinda has been inaugurated. It will be constructed over three years in three phases. There will initially be a quay of 775 metres which will be lengthened to 1.550 metres by the end of the third phase. There will be a storage area of 1.600 hectares and a container cargo area of almost 4.000 hectares. A Public Private Partnership (PPP) will be set up between the government and CaioPorto SA. Over the next five years, Angola aims to invest $1bn in the ports sector of the Cabinda region. > Value of the project: Total funding is USD 360 million. > Sponsors and contractors: CaioPorto SA, Ministry of Transport.

> Botswana > Description & location: Botswana/Lesotho/Namibia/Mozambique/South Africa/Zimbabwe/Regional: SADC Integrated Water Resources Development and Management Programme (IWRM). > Sector: Water & Sanitation/Infrastructure. > Stage in project cycle: Planning. > Details: The Gesellschaft für Internationale Zusammenarbeit (GIZ) of Germany recently issued a call for expressions of interest by consultants in the SADC Integrated Water Resources Development and Management Programme (IWRM). The Programme concerns transboundary water management in selected SADC countries to strengthen capacities of local communities by developing local water development and management plans. The countries concerned are Botswana, Lesotho, Namibia, Mozambique, South Africa and Zimbabwe. The Programme is also supported by DfID of the UK and AusAid. > Value of the project: Unfinalized. > Sponsors and contractors: Gesellschaft für Internationale Zusammenarbeit (GIZ), DfID of the UK, AusAid.

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Power of India of CIC Energy and its Mmamabula coal power generation & export project in Southern Botswana. The project has four components: export of coal via Namibia; power supply to the domestic market; the main energy Project for power supply in the region; and coal-to-hydrocarbons (diesel fuel). The project has in the past, experienced numerous delays. > Value of the project: The value of the deal is USD 120 million. > Sponsors and contractors: The Botswana Competition Authority, Jindal Steel & Power of India, CIC Energy.

> Burundi > Description & location: Jiji and Mule Hydro-Power Projects, Southern Burundi. > Sector: Power/Infrastructure/Mining. > Stage in project cycle: Planning. > Details: Funds from the Capital Projects Feasibility Programme (CPFP) have been used for the partfunding of feasibility studies for the Jiji and Mule hydro-power Projects. The 50 MW Jiji Project is in the south of the country. The 16,5 MW Mule project is incorporated in the Nile Basin Initiative. The implementing agency is REGIDESO. > Value of the project: Unfinalized. > Sponsors and contractors: Capital Projects Feasibility Programme (CPFP), Nile Basin Initiative, REGIDESO.

> Cameroon > Description & location: Logbaba natural gas project, Douala, Cameroon. > Sector: Oil & Gas/Industrial/Environmental. > Stage in project cycle: Early implementation. > Details: Victoria Oil & Gas has begun the supply of gas to the industrial estates and port in Douala from its Logbaba natural gas Project. The gas is being used to generate power, to replace heavy fuels and to reduce fuel waste. There has been a considerable increase in industrial activity in the city’s port area. Victoria Oil and Gas intends in future to secure licences for oil and gas exploration in other parts of the country - onshore and offshore. > Value of the project: Unstated. > Sponsors and contractors: Victoria Oil & Gas, Doula Port Authority.

> Botswana > Congo (Democratic Republic) > Description & location: Mmamabula coal power generation & export project, Southern Botswana. > Sector: Power/Infrastructure/Mining. > Stage in project cycle: Planning. > Details: The Botswana Competition Authority has now approved the majority take-over by Jindal Steel &

> Description & location: Congo (DR), Luano City commercial property development, Lubumbashi, Katanga. > Sector:

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Commercial Property/Construction/Housing/Health/ Water & Sanitation/ Education. Stage in project cycle: Early implementation. Details: Branco Construction is the contractor working on the Luano City commercial property development situated in Lubumbashi near the airport. The master plan was done by the British company, JTP. Offices are being advertised for occupation in December 2012. Show houses and offices are under construction. The site covers 400 hectares. The 15 - year project will include 1.545 housing units, a shopping centre, a clinic, an hotel, a church, a school, a consular precinct, sports facilities and some 70 units for light industry and warehousing. The road from the town to the airport is being widened and a bridge will soon be constructed. The project has experienced numerous delays in the past. Value of the project: Unstated. Sponsors and contractors: Branco Construction, JTP of the UK, Extreme Projects Design Services (XPDS), City of David, Jennyland. Ancillary information: Two other larger commercial property developments at planning stage are City of David situated 39 kilometres from Lubumbashi on the road to Likasi and Jennyland which is 15 kilometres from the provincial capital.

> Congo (Democratic Republic) > Description & location: Congo (DR), wheat production project, Katanga Province. > Sector: Agricoluture/Agribusiness. > Stage in project cycle: Planning. > Details: The South African-origin firm, Entreprises Swanepoel is looking for USD 5 million from a development finance institution for the development of a wheat production Project situated about 40 kilometres south-west of Likasi in Katanga Province. It has just completed a dam on the site and has prepared 1.500 hectares. The company has a farm producing maize, beans and beef. The company recently launched a butchery in the area. The company recentely launched a butchery in the area. > Value of the project: USD 5 million. > Sponsors and contractors: Enterprises Swanepoel.

> Congo (Democratic Republic) > Description & location: Congo (DR), cement plant, Likasi, Northern Katanga Province. > Sector: Industrial. > Stage in project cycle: Early implementation. > Details: Grand Cimenterie du Katanga (GCK) is rehabilitating a cement plant in Likasi, northern Katanga Province. It officially opened in April 2012. It hopes to commence cement production in 2014. It already produces 1.200 tons of lime. The targets are 1

September 2012

million tons of cement per annum (3.000 tons per day) and 500.000 tons of lime. GCK is a new consortium. Calcaire, Chaux & Ciment (CCC) of Gecamines becomes an affiliate. The Forrest Group and state mining utility, Gecamines were looking for a third investment partner. HNUE of Belgium now holds about 66% with Gecamines holding the rest. The initial investment was USD 170.000. > Value of the project: The initial investment was USD 170.000. > Sponsors and contractors: Grand Cimenterie du Katanga (GCK), Calcaire, Chaux & Ciment (CCC), Forrest Group, Gecamines, HNUE of Belgium. > Ancillary information: Currently there is no locally produced cement in the Katanga market.

> Ethiopia > Description & location: Third electricity access and rural expansion project in Ethiopia. > Sector: Energy. > Stage in project cycle: Conceptual. > Details: The main objective of the second phase of the electricity access rural expansion project is to increase access to electricity in rural towns and villages with grid access, by assisting Ethiopian Electric Power Corporation (EEPCo) in its connection fee-financing program, extending loan tenors of five years to poor household customers. > Value of the project: € 140.000.000. > Sponsors and contractors: World Bank.

> Gabon > Description & location: Gabon Mayumba Forest Reserve, Southern Coast. > Sector: Forestry/Agri-Industrial. > Stage in project cycle: Conceptual. > Details: A South African group has been approached by the Gabonese government for the development of the Mayumba Forest Reserve on the southern coast of the country. Gabon is a producer of top quality hard woods. > Value of the project: Unfinalized. > Sponsors and contractors: Ministery of Water and Forests.

> Gabon > Description & location: Gabon, Belinga iron ore project, North Eastern Gabon. > Sector: Mining/Ports/Rail/Transport/Infrastructure. > Stage in project cycle: Planning. > Details: There are reports that the two-year delay in the long-mooted Belinga Iron Ore Project could lead to the cancellation of the contract to China Machinery 3

Sub - Saharan Africa Projects Engineering Corporation. The contract was won by the Chinese against strong contention from Brazil and France. The Chinese had undertaken to build a rail spur and establish bulk handling facilities at a new port near Owendo in addition to development of the resource. > Value of the project: Unfinalized. > Sponsors and contractors: China Machinery Engineering Corporation, Ministry of Industry and Mines.

> Ghana > Description & location: Takoradi 2 power plant, Southern Ghana. > Sector: Power/Infrastructure/Oil & Gas. > Stage in project cycle: Early implementation. > Details: Some USD 330 million is being raised for the expansion of the Takoradi 2 power plant to run on gas coming from the West African Gas Pipeline. The plant has been running on light crude oil but the turbines are being converted to enable them to run on natural gas too. The conversion will double the capacity of the 220 MW plant. > Value of the project: USD 330 million. > Sponsors and contractors: Takoradi International Company (TICO), International Finance Corporation (IFC), Opec Fund for International Development, Canada Climate Change Programme.

> Ghana > Description & location: Ghana rural water supply & sanitation. > Sector: Water. > Stage in project cycle: Project approved on 24/07/2012. > Details: The programme has four main objectives: 1) to develop a programmatic approach to scale-up provision of water, sanitation and hygiene services in small towns and rural areas and participate in the development of the Sector Wide Approach; 2) to increase access to water supply in small towns and rural areas; 3) to increase access to sanitation and hygiene services in small towns and rural areas; and 4) to implement capacity building to ensure programme inclusiveness and sustainability. > Value of the project: € 93.000.000. > Sponsors and contractors: EIB and Agence Française de Développement (AFD), which will be the lead institution during implementation, will ensure that equipment, works and services to be financed under the programme will be procured at the most advantageous price, having regard to quality and efficiency, and that an open international bidding procedure will be followed when appropriate.

September 2012

> Guinea > Description & location: Kouroussa gold project, Southern Guinea. > Sector: Mining. > Stage in project cycle: Early implementation. > Details: The Toronto-listed Cassidy Gold is undertaking several initial studies for the development of its Kouroussa Gold concession. It is currently undertaking a preliminary feasibility study and a new scoping study will be produced. Drilling could take place during 2013. Once the preliminary studies have been completed, further investigation is likely to be assigned to SRK. > Value of the project: USD 110 million. > Sponsors and contractors: Cassidy Gold of Canada, SRK, Ministry of Mines.

> Kenya > > > >

Description & location: Four power projects, Kenya. Sector: Power/Infrastucture. Stage in project cycle: Planning. Details: The World Bank has approved guarantees that will mobilize some USD 620 million (USD 400 million from private sources) for four power Projects in Kenya. The Projects will generate an additional 285 MW by 2014. The guarantees are for Projects to be implemented by Thika Power, Triumph Generating Company, Gulf Power and OrPower. The companies all have power purchasing agreements with the national utility, Kenya Power and Lighting Company (KPLC). > Value of the project: Total USD 620 million. > Sponsors and contractors: The World Bank, Thika Power, Triumph Generating Company, Gulf Power, OrPower, Kenya Power and Lighting Company.

> Kenya > Description & location: Kenya - Nairobi missing link roads and non- motorised transport facilities. > Sector: Infrastucture/Transport. > Stage in project cycle: Planning. > Details: Regional economic integration by means of transport infrastructure constitutes the first focal sector of the EU–Kenya country strategy programme/national indicative programme (CSP/NIP, 2008–2013). The works under this project shall cover the construction of approximately 14 km of missing link roads to paved standards and approximately 12 km of non-motorised transport facilities (cycle tracks and footpaths); rehabilitation and dualling of approximately 4 km of existing roads; and construction of grade-separated interchange. > Value of the project: Works: € 24.500.000; supervision: € 900.000. > Sponsors and contractors: EU and EDF.

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Sub - Saharan Africa Projects > Kenya > Description & location: Energy sector recovery project in Kenya; consulting services: wind energy data analysis and development program. > Sector: Energy. > Stage in project cycle: Project approved on 07/02/2012. > Value of the project: € 265.000.000. > Sponsors and contractors: European Investment Bank.

> Lesotho > Description & location: Motete Dyke diamond project, Butha-Buthe, Lesotho. > Sector: Mining. > Stage in project cycle: Early implementation. > Details: The UK based Paragon Diamonds have reported positive initial results from their studies at the Motete Dyke Diamond Concession. It has signed a Memorandum of Understanding with the local Matekane Group for implementation of the project. > Value of the project: USD 10 million initial funding. > Sponsors and contractors: Paragon Diamonds, Ministry of Mines, Matekane Group. Studies were undertaken by the MSA Group.

> Malawi > Description & location: Coal-fired power station, Southern Malawi. > Sector: Power/Infrastructure. > Stage in project cycle: Pre - implementation. > Details: The Ministry of Energy and Mining has announced that the Gezhouba Group of China will be building a coal-fired power station in the proximity of Vale’s Nacala rail line. Construction will commence in 2013 and end in 2015. > Value of the project: The cost is estimated at USD 500 million. > Sponsors and contractors: The Ministry of Energy and Mining, Gezhouba Group of China, Vale. > Ancillary information: The Millennium Challenge Account of the USA has renewed its USD 350,7 million compact with Malawi most of which is allocated to the energy sector.

> Malawi > Description & location: Malawi/Tanzania/Regional: oil exploration, Northern Lake Malawi. > Sector: Oil & Gas. > Stage in project cycle: Planning.

September 2012

> Details: Surestream Petroleum of the UK is undertaking an environmental impact assessment for oil exploration in the northern section of Lake Malawi near the Tanzanian border. > Value of the project: Unfinalized. > Sponsors and contractors: Surestram Petroleum of the UK.

> Mauritania > Description & location: Nouadhibou free zone development, Northern Mauritania. > Sector: Ports/Transport/Infrastructure/Industrial/MacroEconomic. > Stage in project cycle: Planning. > Details: The Mauritanian Government intends establishing a Free Zone / Export Zone at Nouadhibou situated 465 kilometres north of Noukchott on the border with the Western Sahara. The intention is also to establish the port town as an industrial growth pole. The town has a port with capacity for the export of iron ore, mining products and gas. > Value of the project: Unfinalized. > Sponsors and contractors: Ministry of Industry, Société Nationale Industrielle et Minière (SNIM).

> Mozambique > Description & location: Mozambique/Swaziland/Regional: Goba rail line. > Sector: Rail/Transport/Infrastructure/Mining. > Stage in project cycle: Early implementation. > Details: The Goba rail line in Swaziland built in the 1960’s has been reactivated and 2 million tons of iron ore are being exported through Maputo, Mozambique. Exploitation of the iron ore deposits at Ngwenya had been halted due to lack of commercial viability but has now been resumed. The number of trains on the line has been doubled to four. > Value of the project: Unfinalized. > Sponsors and contractors: Swaziland Railway.

> Mozambique > Description & location: Mozambique, energy and development access project. > Sector: Power/Infrastructure. > Stage in project cycle: Signed on 01/2011. > Details: The objective of the Second Adaptable Program Loan for the Energy Development and Access Project for Mozambique is to increase access to electricity and modern energy services in peri-urban and rural areas in a sustainable and affordable manner. There are three components to the project. The first component of the project is reinforcement of the 5

Sub - Saharan Africa Projects primary networks and grid extension component. This component will finance: (i) engineering and consulting services; (ii) a medium voltage (MV) network transmission efficiency pilo. > Value of the project: € 104.000.000. > Sponsors and contractors: World Bank and EIB. > Ancillary information: World Bank procedures will apply. The EIB’s schemes will be tendered with parallel publication of tender notices in the OJEU as and where appropriate.

September 2012

> Namibia

> Description & location: Ncondezi Power Plant, Tete, Zambezi Valley, Mozambique. > Sector: Power/Infrastructure. > Stage in project cycle: Planning. > Details: Ncondezi Mining of the UK is proposing the development of a 1.800 MW coal-fired power plant at the site of its Ncondezi mine in the Tete region of the Zambezi Valley. Parsons Brinckerhoff undertook the feasibility study. A number of investors in the area are proposing utilization of their coal resources for new power stations. Jindal of India is another new investor with a similar proposal. The first phase of development is focused on an 1.800 MW power plant, built in 300 MW units. > Value of the project: Unfinalized. > Sponsors and contractors: Ncondezi Mining of the UK, Parsons Brinckerhoff, Jindal of India.

> Description & location: Mozambique: Namibia. Tsumeb logistics park, Northern Namibia. > Sector: Property/Industrial/Transport/Infrastructure/Environment al. > Stage in project cycle: Planning. > Details: Econogistics/PDNA of South Africa has applied to the Capital Projects Feasibility Programme (CPFP) of the South African Department of Trade and Industry for the funding of a feasibility study for the proposed Tsumeb logistics park in Northern Namibia. The town of Tsumeb has a particularly important strategic role in that there are plans for the extension of a rail link from Tsumeb to a trade rail head situated a few kilometres into Angolan territory. > Value of the project: Unfinalized. > Sponsors and contractors: Econogistics/PDNA of South Africa, Capital Projects Feasibility Programme (CPFP) of the South African Department of Trade and Industry, GTZ of Germany, Namibia Breweries’ Thunweni Sorghum Brewery. > Ancillary information: In 2000, the GTZ of Germany undertook a study that included reference to the development of an industrial cluster around the Namibia Breweries’ Thunweni Sorghum Brewery in Tsumeb. The stated goal was to utilize as many byproducts as possible to achieve zero emission of pollutants.

> Mozambique

> Nigeria

> Description & location: Cargo corridor of the port of Maputo, in Mozambique. > Sector: Transport/Infrastructure. > Stage in project cycle: Planning. > Details: The Common Market for East and Southern Africa (COMESA) has invited consulting companies to state their interest in drawing up a strategy for the cargo corridor of the port of Maputo, in Mozambique. > Value of the project: Unfinalized. > Sponsors and contractors: COMESA. > Ancillary information: The strategy will be part of a coordinated approach focused on transport corridors and the port of Maputo framed by an integrated system intended to boost trade. The programme has two components and the national one is focused on improving facilities along the Beira and Nacala corridors by improving the transport and planning policy of the Mozambican government.The second component, which is a regional one, plans to ensure that the improvements introduced in the development corridors will turn into benefits for Mozambique’s neighbouring countries without direct access to the sea, by reducing transport costs.

> Description & location: Third urban water sector project in Nigeria. > Sector: Water. > Stage in project cycle: The project is still in the early

> Mozambique

identification stage. > Details: The third urban water sector project intends to increase access to piped water networks, and improve reliability and financial viability in selected states. > Value of the project: The value of the initiative is € 280.000.000. > Sponsors and contractors: World Bank.

> Nigeria > Description & location: Nigeria, oil refinery programme. > Sector: Oil & Gas/Industrial. > Stage in project cycle: Planning. > Details: A JV group, comprising the Vulcan Energy Corporation and Petroleum Refining & Strategic Reserve Limited, has signed a memorandum of understanding with the Nigerian government for the construction of six oil refineries. The main Nigerian 6

Sub - Saharan Africa Projects parties involved are the Ministry of Petroleum Resources, the Ministry of Trade and the Nigerian National Petroleum Corporation (NNPC). Two of the refineries are scheduled for completion within a year. The target is to refine 180.000 barrels per day. > Value of the project: The value of the initiative is USD 4,5 billion. > Sponsors and contractors: Vulcan Energy Corporation, Petroleum Refining & Strategic Reserve Limited, Ministry of Petroleum Resources, the Ministry of Trade, Nigerian National Petroleum Corporation (NNPC). > Ancillary information: Nigeria is compelled to import 70% of its petroleum requirement due to inadequate refining.

> Nigeria > Description & location: Niger Basin water resources development and sustainable ecosystems management -consultancy services for screening of potential hydropower sites. > Sector: Water. > Stage in project cycle: Project open - express interest by September 21, 2012. > Details: The project development objective is to enhance regional coordination, development and sustainability of water resources management in the Niger River Basin. The expected outcomes would include: (i) improved institutional coordination for regional management and development of water resources in the Niger River Basin; (ii) improved performances of rehabilitated hydroelectric plants in targeted areas; (iii) improved irrigated agriculture in targeted areas; and (iv) improved watershed management in targeted areas. > Value of the project: US$ 186.000 million. > Sponsors and contractors: World Bank.

> Somalia > Description & location: Mogadishu stabilization project, Somalia. > Sector: Infrastructure. > Stage in project cycle: Pre - implementation. > Details: A number of donors are involved in the Mogadishu stabilisation project for the gradual rebuilding of the city. The main partners are the United States Agency for International Development (USAID) and the Department for International Development (DfID) of the UK. The donors are assisting the Transitional Federal Government with the restoration of infrastructure such as buildings, lighting and rubble removal in the city’s sixteen districts. > Value of the project: An initial USD 9,5 million has been allocated to the project.

September 2012

> Sponsors and contractors: United States Agency for International Development (USAID) and the Department for International Development (DfID) of the UK. > Ancillary information: DFID’s aid programme in Somalia plans to spend an average of £69 million per year until 2015.

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Description & location: South Sudan, Juba Airport. Sector: Airports/Transport/Infrastructure. Stage in project cycle: Pre - implementation. Details: There are reports that China will be extending a USD 160 million loan for the completion of Juba Airport. The airport comprises three buildings, one old and two new. The second new building requires completion and handling and communications infrastructure must be installed. The Project is linked to a new government proposal for the establishment of a new national airline. > Value of the project: USD 160 million. > Sponsors and contractors: United States Agency for International Development (USAID) and the Department for International Development (DfID) of the UK. > Ancillary information: DFID’s aid programme in Somalia plans to spend an average of £69 million per year until 2015.

> Tanzania > Description & location: Coal-fired power station, Mbeya, Southern Tanzania. > Sector: Power/Infrastructure. > Stage in project cycle: Planning. > Details: Kibo Mining/Mzuri Coal Limited has announced that they have signed a memorandum of understanding with an Asian conglomerate for the construction of a 300 MW coal-fired power station near their Rukwa coal concession near Mbeya, southern Tanzania. It is reported that AIM and JSElisted Kibo Mining has taken control of Mzuri Coal. > Value of the project: Unfinalized. > Sponsors and contractors: Kibo Mining, Mzuri Coal Limited. > Ancillary information: There has been a considerable increase in economic activity in the Mbeya area.

> Tanzania > Description & location: Tanzania: Wete-Chake Chake road, Pemba Island. > Sector: Roads/Transport/Infrastructure. > Stage in project cycle: Planning.

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> Details: The Arab Bank for the Economic Development of Africa (BADEA) has approved a concessional loan of USD 10 million for the construction of the Wete-Chake Chake Road on Pemba Island, Zanzibar. > Value of the project: USD 10 million. > Sponsors and contractors: The Arab Bank for the Economic Development of Africa (BADEA), TANROADS. o

> Tanzania > Description & location: Honey King factory, Kibaha, Coast Region, Tanzania. > Sector: Agriculture/Agri-Business. > Stage in project cycle: Early implementation. > Details: Honey Kind Limited of China has opened a new honey factory at Kibaha in the coast region which has annual processing capacity of 10 000 tons. Over 20 000 beehives will be established in the Tabora, Tanga, Dodoma, Arusha, Lindi, Mtwara, Mbeya, Rukwa and Iringa regions. The produce will be exported to North America, Europe and the Middle East. > Value of the project: Unstated. > Sponsors and contractors: Honey King Limited of China, Ministry of Agriculture.

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> Zambia > Description & location: Tanzania, Zambia, Shopping Mall & Commercial Property Developments, Kitwe. > Sector: Property/Industrial/Roads/Airports/Ports/Transport/Infrast ructure/Housing/Oil & Gas. > Stage in project cycle: Planning/Pre-Implementation. > Details: The following are shopping mall and commercial property developments in Kitwe on the Zambian Copperbelt: o The Kitwe Town Council has given approval for the master plan that will lead to the development of the New Kitwe town. The lead ministry is that of Local Government and Housing. Intrinsic to the Project is the construction of the new Mufuchani Bridge with a span of 35-40 metres over the Kafue River at a cost of USD 10 million. The World Bank is contributing to the cost of the bridge as well as the relocation of the affected population. Some 3 000 housing units will be required for the resettled population. JAICA is reportedly involved. Some 100 kilometres of road with pavements and drains will be constructed and rehabilitated under the town’s five-year road Programme. o The New Kitwe Town Project includes the construction of the Southdowns Airport. The implementing agency is the National Airports Company. o Zambia’s new oil refinery is possibly going to be located in the Sub-Sahara Gemstone Exchange Complex situated over 300 hectares near Ndola airport. USD 22

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million has been secured in investments by tenants. The complex will include light industry, a dry port, a container depot, warehousing, a training centre, postal services HQ, the Kagem emerald cutting and polishing centre. The Project managers are Phoenix Materials and the architects are a+urbantechnics. Group Five is reportedly involved in the housing development. Freedom Park Mall which has been delayed due to a financial dispute. The owners are Platinum Gold and the contractor is Pouwels of Cape Town. Shoprite had shown interest in taking over the complex. A Holiday Inn is planned for a site adjacent to the mall at a cost of USD 35 million. Pam Golding is responsible for leasing and management. The Nkana Mall is owned by the Greek Zambian company, G&G Bakery. Akris Properties are involved. City Square Mall & Office which is being implemented by Zambian and South African interests. Hotel and conference centre opposite Chingola cemetery which will be one of the largest commercial property developments. Construction has begun on the Copper Hill shopping mall and the opening is scheduled for October 2012. The owners are Great Lakes Products and the property managers are Sharehold Green. It includes an ACM mineral water plant. A steel works factory will be included. Anchor tenants are Pick n’ Pay, Radion Stores, Debonairs, Wimpey, Furnmart and Bata Shoes. A hotel in the vicinity is being considered. A further five kilometres along the road from Kitwe to Chingola lies the large-scale Copperbelt City complex that will also include an hotel. It will cost USD 200 million and will be developed over the next two years. It is a subsidiary of Manda Hill Mall in Lusaka. Other parties involved are TGP Properties and HBW of South Africa. This should be Zambia’s largest mall. Land disputes have reportedly been settled. Development of four sports stadiums and a sports school of excellence on the outskirts of Kitwe on the Ndola road. Over the next five years, 100 kilometres of road will be constructed or rehabilitated in Kitwe in two phases of 40 and 60 kilometres. The USD 4,9 million Kitwe Mall being built by Pouwels Contractors of Cape Town is scheduled for completion by the end of this year. Shoprite had wanted to take it over. Construction was halted by a court case. Pouwels is building the new Barloworld/CAT headquarters in Kitwe. Pouwels is building a school and housing units in Solwezi (Stafford McGregor). Land has been cleared for the new Millennium shopping mall in Ndola. The new Jacaranda Mall in Ndola has been a success. Bell Equipment has taken a property for its HQ on the Chingola road in Kitwe. A heavy industrial area is being developed on the Chingola road on the outskirts of Kitwe.

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Sub - Saharan Africa Projects o The Chinese have almost completed a 600-unit housing development at Kalubushi that will include schools and a hospital. o 53 billion Kwacha have been allocated for road infrastructure development including concrete roads in Chingola. A South African contractor is involved.

> Value of the project: Total unfinalized. > Sponsors: Honey King Limited of China, Ministry of Agriculture. > Contractors: Ministry of Local Government and Housing, World Bank, JAICA, National Airports Company, Sub-Sahara Gemstone Exchange Complex, Kagem, Phoenix Materials, a+urbantechnics, Group Five, Platinum Gold, Pouwels of Cape Town, Shoprite, Holiday Inn, Pam Golding, G&G Bakery, Akris Properties, Great Lakes Products, Sharehold Green, Pick n’ Pay, Radion Stores, Debonairs, Wimpey, Furnmart, Bata Shoes, TGP Properties, HBW of South Africa, Bell Equipment.

> Zambia > Description & location: New township, Lumwana, North Western Province, Zambia. > Sector: Commercial/Property/Infrastructure/Housing/Education. > Stage in project cycle: Planning. > Details: Barrick has already constructed some 1.000 houses for its workers on its Lumwana mine in the North Western Province but must develop a new township for its junior and Zambian staff. The new town could be developed within the mine concession area (which is a forestry reserve) or in Manyama outside Lumwana. The government appears to prefer the Manyama development. Timing for commencement of the development is vague – it could be 18 months although an offsite development would take longer. The number of units to be built has also to be decided. The company will be spending USD 40 million over the next two years on construction Projects at its Lumwana concession. These include housing, a school, community hall and churches. > Value of the project: USD 40 million. > Sponsors and contractors: Barrick, Lumwana District Authority. > Ancillary information: 250 more expatriates will be recruited for the mine expansion and housing units must be built for them too.

> Zambia > Description & location: Zambia, aquaculture project, North Western Province. > Sector: Commercial, Agriculture/Agri-Business/Aquaculture.

September 2012

> Stage in project cycle: Early implementation. > Details: An aquaculture project is being developed just outside Barrick’s Lumwana concession in the North Western Province. It is being undertaken by the United States African Development Foundation (USADF), the Zambia Agribusiness Technical Assistance Centre Limited (ZATAC) and the Lumwana Agricultural Cooperative Union. > Value of the project: Unfinalized. > Sponsors and contractors: United States African Development Foundation (USADF), the Zambia Agribusiness Technical Assistance Centre Limited (ZATAC), Lumwana Agricultural Cooperative Union.

> Zambia > Description & location: Gorge project township, Mwinilungu District, North Western Province, Zambia. > Sector: Housing/Health/Commercial Property/Education/Roads/Transport/Infrastructure/Wate r & Sanitation/Power. > Stage in project cycle: Planning. > Details: The Copperbelt Energy Corporation (CEC) has issued an invitation for expressions of interest for building construction and civil works at the Kabompo Gorge project township the Mwinilungu District of the North-Western Province of Zambia. The building construction component is for a housing complex, guest house, offices, club house, sports hall, clinic, police station and schools. The civil works and services component is for roads, a water treatment plant with reticulation, sewerage reticulation and treatment plant and a waste disposal site. Only short-listed firms will be eligible for bidding. The CEC is developing a 40 MW hydro power station at the gorge. > Value of the project: Unfinalized. > Sponsors and contractors: Copperbelt Energy Corporation (CEC). > Additional info: There are rumours that the capital of the North-Western Province could be moved from Solwezi to Kibompo.

> Zambia > Description & location: Zambia, new open pit copper mine, Kitwe. > Sector: Mining. > Stage in project cycle: Pre-implementation. > Details: The Zambia Environmental Management Agency (ZEMA) has approved the construction of a 40 billion Kwacha new open pit copper mine by Mopani Copper Mines (MCM) in Kitwe. The new mine will provide MCM with access to over five million tons of copper ore and permit monthly production of 450.000 tons. > Value of the project: Total unfinalized.

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Sub - Saharan Africa Projects > Sponsors and contractors: Zambia Environmental Management Agency (ZEMA), Mopani Copper Mines (MCM). > Ancillary information: MCM is currently in the final phase of a detailed feasibility study involving USD 1,5 billion of additional investment in two new shafts and a processing plant in Mufulira.

> Zambia > > > >

Description & location: New brewery, Ndola, Zambia. Sector: Agri-business/Industrial. Stage in project cycle: Early implementation. Details: SAB Miller and Zambian Breweries have announced that first production from the new brewery in Ndola will take place in November 2012. The brewery was started in 2009 and will have a production capacity of 100 million litres or 267 million bottles per annum. The old brewery will continue producing until the new plant kicks in. > Value of the project: The cost is estimated at USD 90 million. > Sponsors and contractors: SAB Miller and Zambian Breweries > Additional info: Heavy equipment from Germany recently arrived on site. Beer consumption in Zambia increased some 30% in 2011.

> Zambia > Description & location: Zambia, ZAMBEEF expansion programme. > Sector: Agri-business. > Stage in project cycle: Early implementation. > Details: The International Finance Corporation (IFC) has injected a further USD 30 million in the local meat production company, ZAMBEEF. This will assist the company with its marketing as well as production of a wider range of meat products. > Value of the project: USD 30 million. > Sponsors and contractors: The International Finance Corporation (IFC), ZAMBEEF. > Ancillary information: ZAMBEEF has 16 000 hectares and employs over 5.000.

September 2012

> Sponsors and contractors: EIB.

> Zambia > Description & location: Rehabilitation of the Great East road. > Sector: Infrastructure. > Stage in project cycle: Supervision of civil works is forecasted and expected to be OPEN in 2012. Works contract cancelled (waiting for re-issue) - Budget: 5.000.000 Ref: EuropeAid/130578. > Details: Projects in pre-forecast stage:
-Rehabilitation of Luangwa Bridge-Nyimba, Sinda- Katete, Chipata Town & Chipata-Mwami Border sections (162.8km) Budget: 31.450.000 -Supervision of works - Budget: 5.300.000. > Sponsors and contractors: EU.

> Zambia > > > >

Description & location: Lumwana Mining. Sector: Mining. Stage in project cycle: Project ongoing. Details: The project represented one of the largest foreign direct investments in Zambia and as expected acted as a catalyst for the development of infrastructure in the north-western province. The development of the Lumwana project engendered positive socio-economic impacts in an area, which has so far received little investment. > Value of the project: € 43 million. > Sponsors and contractors: African Development Bank.

> Zambia > Description & location: Itezhi - Tezhi Hydro Project. > Sector: Energy. > Stage in project cycle: Approved by EIB on 07/02/2012 > Details: Major permits for a 247 MW hydropower project on the Kalungwishi river, in Zambia, are expected to be in place by February next year, reports owner Lunzua Power Authority (LPA) > Value of the project: € 265 million. 10

Sub - Saharan Africa Projects

September 2012

Contacts

Avv. Eugenio Bettella Partner Tel.: + 39 049 8046911 E-Mail: [email protected] Managing Partner of the Firm, is an expert in international corporate and commercial law, liquidations, national and international arbitration and general litigation, M & A, privatizations And i n t e r n a t i o n a l joint ventures. He assists Italian and foreign companies as a specialist in trade and production relocation projects in Eastern Europe, Russia, Middle and Far East, Africa and South America. Eugenio Bettella is an expert in commercial and corporate law in Islamic countries. He is considered a reference point in these areas for many industrialists’ associations in Italy (Confindustrie). He is a speaker at numerous courses, seminars and conferences on international law, more broadly on the development of business in the aforementioned areas. Arbitrator at the Tunisian-Italian Chamber of Arbitration of Tunis and the Chamber of Arbitration of the Chamber of Commerce Italy-Germany (AHK Italien) which is also the representative for Eastern Veneto and Friuli Venezia Giulia. Languages: Italian, English and French.

Dott.ssa Federica Scarso Tel. + 39 049 8046911 E-Mail: [email protected] Business Development Manager for the Africa Desk, graduated from the University of Trieste, after studying in Germany and U.S.A. Federica Scarso has a finance qualification from the Gordon Institute of Business Science of Joh a n n e s b u r g (South Africa). She has gained extensive experience working in Africa, from 2003, in the production of Emerging Markets Country Reports in countries such as Sierra Leone, Nigeria, Libya and then in South Africa Argentina and Brazil. In 2007 Federica Scarso joined Africa Investor, with headquarters in Johannesburg, as Business Development Manager for West Africa (Ghana, Nigeria, Liberia, Sierra Leone) Luso Africa (Mozambique, Angola) and Southern Africa (South Africa, Zimbabwe, Zambia). Then she developed specific expertise in the promotion of investment opportunities in Africa working with both the private and public sector. At Rödl & Partner Federica Scarso assists Italian companies in investment projects in Africa (particularly Ghana, Zimbabwe, Angola, Nigeria and Mali) in the areas of infrastructure, agribusiness, oil & gas and mining. She provides support to companies in their start-up phase in Africa, particularly with respect to the development of strategies and feasibility studies in sub-Saharan Africa. Languages: Italian, English, German, Portuguese and Spanish.

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Sub – Saharan Africa Projects - September 2012 Printed Published in September 2012 Editing: Avv. Eugenio Bettella, Dott.ssa Federica Scarso E-mail: [email protected] Website international: www.roedl.com Website Italia: www.roedl.com/it Offices Worldwide: Austria, Bielorussia, Bosnia-Herzigovina, Brasil, Bulgaria, China, Croatia, United Arab Emirates, Estonia, France, Georgia, Germany, United Kingdom, Hong Kong, India,Indonesia, Kazakhstan, Latvia, Lithuania, Moldova, Poland, Qatar, Czech Republic, Slovak Republic, Rumania, Russia, Singapore, Slovenia, Spain, South Africa, Sweden, Switzerland, Thailandia, Turkey, Ukraine, Hungary, USA, Vietnam

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