Sept 2018
Sept 2018
Dec 2018
March 2019
June 2019
July 2019
July 2021
Rift Valley Hydro Projects
Empower Energy's Rift Valley Projects are located in the Mbulu and Babati Districts, Manyara Region in the north of Tanzania. Taking advantage of the Rift Valley's steep escarpments, the Projects are characterized by high water head (change in elevation) which allows for high generation capacity while using relatively small river flow.
The Projects are all located within 40 kilometres of the town of Mbulu and will be developed, constructed and operated as a group to capture economies of scale and reduce costs.There are several high voltage transmission lines running near the sites and the national grid is being extended to reach most villages.
The Project Company has executed an agreement with an engineering and financial consortium which is preparing a proposal to construct the Projects. The consortium will acquire a minimum 51% equity interest in the Projects if the proposal is accepted.
Project in Brief
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Project Company: Power Matrix Corporation Limited
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Project: 4 run-of-river hydro projects with a total estimated capacity of 17MW
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Location: Manyara Region Tanzania
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Generation: 72,000,000 kWh / annum
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Total Investment: US$ 46 million
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Start of Construction: January 2021 (1st project)
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Planned Completion: December 2023 (4th project)
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The Project Company will sell its generation to the Tanzanian Electric Supply Company (TANESCO) under a 25-year SPPA's with a tariff set in US$.
Milestones
Feasibility Study (Project 1)
Pre-feasibility Study (Projects 2,3,4)
Land Title (99-year lease) (Project 1)
Letter of Intent for PPA (Project 1)
Feasibility Study (Project 2,3,4)
Land Title (Project 2,3,4)
SPPA Execution
ESIA (IFC/EIB Standards)
Financial Close
Start of Construction
Commercial Operation (1st Project)
Commercial Operation (4th Project)
Achieved
Achieved
Achieved
Applied
March 2019
June 2019
April 2020
July 2020
December 2020
January 2021
July 2022
January 2024
Investment Requirement
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Expected equity required is $US 14 million of which a minimum of 51% is currently under offer, therefore up to $7 million of equity could be available.
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The Project is a very attractive investment due to the potential cost savings of developing and constructing the together and it will provide a healthy rate of return to equity investors.
