WORLD BANK’S OVER E700M FOR POWER PROJECT

MBABANE – The World Bank has pumped over E700 million into the network reinforcement and access project implemented by the Eswatini Electricity Company (EEC) in the Shiselweni Region.

The project is expected to benefit an estimated 8 000 households (approximately 30 000 people). The funding is in the form of loans and grants. The Project Coordinator at EEC Joseph Ncwane stated that existing residential, commercial and industrial customers of EEC will also experience an improvement in the quality of service. He said the project would have multiple benefits in the targeted areas, including supporting rural electrification targets as included in the Network Reinforcement Project (NEP)  (2018) with the view of stimulating productive use of electricity and increased entrepreneurial activities. It also includes improving electricity supply quality and reliability through the introduction and construction of the proposed 132 kV overhead transmission line and associated 132/11 kV substations at strategic locations to improve the voltage profile of the electric distribution system in Shiselweni.

Demand

The project would ultimately stimulate business and entrepreneurial activities, owing to improved reliability and quality of supply. It is expected to lead to increased commercial, industrial and residential electricity demand in the Shiselweni Region, especifically around Matsanjeni and Lavumisa. When unpacking the project, Ncwane stated that the project was divided into four components, whereby the first component was the transmission network reinforcement subcomponent. This component include;

The construction of 87km 132kV Nhlangano 2 – Lavumisa transmission line
Construction of two new 32/11kV substations at Matsanjeni and Lavumisa
Expanding and converting the existing Hluthi 11kV Switchyard into fully-fledged 132/11kV substation.
Expanding existing Nhlangano 2 substation HV side to accommodate 1x 132kV line bay

Includes recruitment of an owner’s engineer, technical feasibility study and ESIA/ESMP and RAP development. The second component of the project was electricity access targeting to connect about 8000 households to electricity. The third and fourth components were analytical support and capacity building and contingent emergency response component respectively.
The project coordinater stated that for the first component, which was further divided into two Lots A and B and Lot A, a contract was awarded to Transrail Lighting (India) for E193 798 997.83 (US$10 681 997.70). He stated that 249 out of 354 foundations have been cast and a string of conductor has achieved 19km out of 84km to give an overall progress of 53 per cent. He added that a total of E5 580 378.58 and E14 074 222.67 has been paid as compensation to 181 Eswatini Nation Land (ENL) and 22 Tittle Deed landowners affected by the project. He said the 181 ENL project affected persons were paid in two instalments, one for each crop harvest.

He stated that they have already paid 120 224 113.47 (US$6 627 843.68) for the supply of materials and construction activities. On Lot B of the first contract, the substations construction, contract awarded to Kalpataru Power Transmission (India) for E 272 135 679.58 (US$15 007 170.60)  and the works are at 40 per cent with civil works are 90 per cent completion and installation, commissioning of equipment not started.

Commodity

On the challenges faced during the implementation of the project, Ncwane highlighted that the project had experienced cost overruns due to price volatility of commodity goods such as steel and copper, among other things. He said additional funding was being mobilised to achieve all objectives of the project. He added that to meet the target of 8 000 connections of households to electricity, an extension of 12 months had been requested from the World Bank and additional funding of about E35 million is being mobilised.

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