Date: 09/03/2006
Source: Ministry of Minerals and Energy
Title: Hendricks: Closing remarks at African Ministerial Conference on Hydropower and Sustainable Development
Closing Remarks by Minister of Minerals and Energy, L Hendricks, at the African Ministerial Conference on Hydropower and Sustainable Development, Sandton Convention Centre, South Africa
Honourable Ministers from Africa
Distinguished delegates,
Ladies and gentlemen,
Before I give my address I would like to express our condolences to the government and the people of Uganda for the tragedy that befell their country when the roof of a church collapsed killing 21 people, I give my condolences to the families of the people who died in that tragic accident. I would also like to pledge our support to the people of Malawi whose country has been severely impacted by the recent torrential rain.
1. Introduction
Ladies and gentlemen, I am sure all of you will agree that this important conference has been extremely valuable and a milestone for development of the hydropower sector in Africa. I think all of us realised after the presentations that were made and the issues raised in our deliberations, that hydropower will not be successful if taken forward by one country alone, it can only be successful through co-operation by the countries of Africa and through the support of our strategic partners in this sector.
The honourable Ambassador from the Democratic Republic of Congo (DRC) in his presentation gave an indication of the potential that hydropower holds for powering Africa. With a possible 100 000 Mega Watts from DRC alone we could achieve electrification of the entire continent and still have excess capacity.
The challenges, however, were noted in that hydropower developments have long lead times and require significant upfront capital investments. This, ladies and gentlemen means that flexible financial terms are required.
We heard the commitments made by the World Bank and the African Development Bank during session six that took place yesterday morning that they are ready to fund large regional hydropower projects.
The private sector also indicated their willingness to invest in these projects, and we all recognise the importance of crowding in private sector investment in order to stimulate economic growth. The private sector did, however, note the importance of African countries having a conducive environment for investment, particularly noting the governance and regulatory issues.
The private sector brings with it technologies that we might not otherwise have available. We must however be cautious in how we interact with these market players as well as developed countries that offer technology support.
In working with the private sector on technology issues and in participating in technology transfer programmes we must ensure that:
* Technology co-operation should be consistent with the development priorities of our countries,
* Technology co-operation should form but one part of our interaction, there must be co-operation and support for poverty alleviation programmes. The example of having poverty and no electricity for communities that live along side massive hydropower projects is clearly unacceptable.
* Our interactions should ensure capacity building of our regional structures, local institutions and their personnel, so that we are able to increase capacity in Africa for the long term management of these projects.
* Participatory approaches should be adopted to ensure that activities are demand-driven and local or regional considerations are incorporated into projects. The World Bank, among others, are well aware of the many development projects have failed due to decisions taken in Europe or America that do not take into account the beneficiaries or people affected by these large scale developments. Due to the length of these investments it is often necessary for consultations to be ongoing rather than once off at the beginning of the project.
The representatives from civil society who participated in this conference made some valuable inputs on the above issues.
2. Regional Presentations
Ladies and gentlemen, during the course of yesterday we received presentations from all five regions in Africa. Some of the key issues that were raised by the Ministers in these regional presentations and during our deliberations include the following:
1. The Minister from Sudan who presented on behalf of North Africa emphasised the importance of regional co-operation and interconnections. He further noted that we have to ensure the achievement of the New Partnership for Africa’s Development (NEPAD) and Millennium Development Goals (MDGs) for hydropower projects.
2. The Minister from Ghana who presented on behalf of West Africa further emphasised that small hydro projects and renewable energies, capacity building and industrial development are also important and should become an integral part of our strategies. And that single countries are unable to fund the high capital costs of hydropower projects and therefore regional co-operation and flexible funding options are needed.
3. The Minister from Uganda who presented on behalf of Eastern Africa noted that their region is rife with poverty and environmental degradation. He urged African countries to ensure that the political risks are reduced to ensure private sector investment and that the risks will be reduced if legislation and regulatory mechanisms are in place so that there could be certainty for investors. The Minister further mentioned that sub-regional projects will require the creation of institutional bodies between countries to steer projects. Regional plans and system expansion plans as well as the interconnection of power grids will be important. He indicated that the financial institutions should provide a mixture of grants and loans. Cultural beliefs should also be taken into account when hydropower projects are planned and implemented.
4. The Minister from Congo (Brazzaville) and the Ambassador from DRC presented on behalf of Central Africa; they highlighted the significant potential of hydropower in that region, the need to bring in private companies who are interested in investing and in establishing Public Private Partnerships.
5. The Minister from Zambia who presented on behalf of Southern Africa indicated that maintenance is a problem and the existing plants are not performing optimally. Investment in new generation capacity did not take place for the past 20 years and there has been no new development in the power sector in Southern Africa during that period. He raised a concern that electricity tariffs in the region are not high enough to attract investment and there is an urgency now to build new power stations as capacity will start running out in 2007/08.
The Minister of Water Affairs and Forestry of South Africa who chaired some of these session raised the need for countries to have national strategies but these must also be evaluated at regular intervals. She also noted that these strategies should fit into regional plans and that hydropower as a key source of clean renewable energy must be put onto the agenda of the African Union (AU).
3. Declaration
Programme Director have during the course of today been negotiating the conference declaration and action plan. I would like to thank the valuable inputs we received yesterday which allowed for the process to flow smoothly this morning.
The issues raised by each region as well as the declaration and the action plan gives us a very clear direction on what we as Ministers will have to do now. We must all ensure that we make provision in our budgets for hydropower projects in our regions. We must empower our regional bodies to start planning so that regional projects can be done in an equitable, transparent and sustainable manner.
4. Conclusion
To conclude, honourable ministers, ladies and gentlemen, a number of people including our own Deputy President in her address last night raised the need for action and to quote one of the presenters “we are tired of hearing the word ‘potential’ – it must become a reality now!”
I would like to thank everyone for attending this conference and for your inputs. I look forward to continued collaboration between countries and between regions so that we get power to the people as soon as possible and create a better life for our people.
I thank you.
Issued by: Ministry of Minerals and Energy
9 March 2006
Source: Ministry of Minerals and Energy
Title: Hendricks: Closing remarks at African Ministerial Conference on Hydropower and Sustainable Development
Closing Remarks by Minister of Minerals and Energy, L Hendricks, at the African Ministerial Conference on Hydropower and Sustainable Development, Sandton Convention Centre, South Africa
Honourable Ministers from Africa
Distinguished delegates,
Ladies and gentlemen,
Before I give my address I would like to express our condolences to the government and the people of Uganda for the tragedy that befell their country when the roof of a church collapsed killing 21 people, I give my condolences to the families of the people who died in that tragic accident. I would also like to pledge our support to the people of Malawi whose country has been severely impacted by the recent torrential rain.
1. Introduction
Ladies and gentlemen, I am sure all of you will agree that this important conference has been extremely valuable and a milestone for development of the hydropower sector in Africa. I think all of us realised after the presentations that were made and the issues raised in our deliberations, that hydropower will not be successful if taken forward by one country alone, it can only be successful through co-operation by the countries of Africa and through the support of our strategic partners in this sector.
The honourable Ambassador from the Democratic Republic of Congo (DRC) in his presentation gave an indication of the potential that hydropower holds for powering Africa. With a possible 100 000 Mega Watts from DRC alone we could achieve electrification of the entire continent and still have excess capacity.
The challenges, however, were noted in that hydropower developments have long lead times and require significant upfront capital investments. This, ladies and gentlemen means that flexible financial terms are required.
We heard the commitments made by the World Bank and the African Development Bank during session six that took place yesterday morning that they are ready to fund large regional hydropower projects.
The private sector also indicated their willingness to invest in these projects, and we all recognise the importance of crowding in private sector investment in order to stimulate economic growth. The private sector did, however, note the importance of African countries having a conducive environment for investment, particularly noting the governance and regulatory issues.
The private sector brings with it technologies that we might not otherwise have available. We must however be cautious in how we interact with these market players as well as developed countries that offer technology support.
In working with the private sector on technology issues and in participating in technology transfer programmes we must ensure that:
* Technology co-operation should be consistent with the development priorities of our countries,
* Technology co-operation should form but one part of our interaction, there must be co-operation and support for poverty alleviation programmes. The example of having poverty and no electricity for communities that live along side massive hydropower projects is clearly unacceptable.
* Our interactions should ensure capacity building of our regional structures, local institutions and their personnel, so that we are able to increase capacity in Africa for the long term management of these projects.
* Participatory approaches should be adopted to ensure that activities are demand-driven and local or regional considerations are incorporated into projects. The World Bank, among others, are well aware of the many development projects have failed due to decisions taken in Europe or America that do not take into account the beneficiaries or people affected by these large scale developments. Due to the length of these investments it is often necessary for consultations to be ongoing rather than once off at the beginning of the project.
The representatives from civil society who participated in this conference made some valuable inputs on the above issues.
2. Regional Presentations
Ladies and gentlemen, during the course of yesterday we received presentations from all five regions in Africa. Some of the key issues that were raised by the Ministers in these regional presentations and during our deliberations include the following:
1. The Minister from Sudan who presented on behalf of North Africa emphasised the importance of regional co-operation and interconnections. He further noted that we have to ensure the achievement of the New Partnership for Africa’s Development (NEPAD) and Millennium Development Goals (MDGs) for hydropower projects.
2. The Minister from Ghana who presented on behalf of West Africa further emphasised that small hydro projects and renewable energies, capacity building and industrial development are also important and should become an integral part of our strategies. And that single countries are unable to fund the high capital costs of hydropower projects and therefore regional co-operation and flexible funding options are needed.
3. The Minister from Uganda who presented on behalf of Eastern Africa noted that their region is rife with poverty and environmental degradation. He urged African countries to ensure that the political risks are reduced to ensure private sector investment and that the risks will be reduced if legislation and regulatory mechanisms are in place so that there could be certainty for investors. The Minister further mentioned that sub-regional projects will require the creation of institutional bodies between countries to steer projects. Regional plans and system expansion plans as well as the interconnection of power grids will be important. He indicated that the financial institutions should provide a mixture of grants and loans. Cultural beliefs should also be taken into account when hydropower projects are planned and implemented.
4. The Minister from Congo (Brazzaville) and the Ambassador from DRC presented on behalf of Central Africa; they highlighted the significant potential of hydropower in that region, the need to bring in private companies who are interested in investing and in establishing Public Private Partnerships.
5. The Minister from Zambia who presented on behalf of Southern Africa indicated that maintenance is a problem and the existing plants are not performing optimally. Investment in new generation capacity did not take place for the past 20 years and there has been no new development in the power sector in Southern Africa during that period. He raised a concern that electricity tariffs in the region are not high enough to attract investment and there is an urgency now to build new power stations as capacity will start running out in 2007/08.
The Minister of Water Affairs and Forestry of South Africa who chaired some of these session raised the need for countries to have national strategies but these must also be evaluated at regular intervals. She also noted that these strategies should fit into regional plans and that hydropower as a key source of clean renewable energy must be put onto the agenda of the African Union (AU).
3. Declaration
Programme Director have during the course of today been negotiating the conference declaration and action plan. I would like to thank the valuable inputs we received yesterday which allowed for the process to flow smoothly this morning.
The issues raised by each region as well as the declaration and the action plan gives us a very clear direction on what we as Ministers will have to do now. We must all ensure that we make provision in our budgets for hydropower projects in our regions. We must empower our regional bodies to start planning so that regional projects can be done in an equitable, transparent and sustainable manner.
4. Conclusion
To conclude, honourable ministers, ladies and gentlemen, a number of people including our own Deputy President in her address last night raised the need for action and to quote one of the presenters “we are tired of hearing the word ‘potential’ – it must become a reality now!”
I would like to thank everyone for attending this conference and for your inputs. I look forward to continued collaboration between countries and between regions so that we get power to the people as soon as possible and create a better life for our people.
I thank you.
Issued by: Ministry of Minerals and Energy
9 March 2006
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