Congo is preparing to start construction work on a new dam, Sounda, in the south of the country. The goal is to increase the supply of electricity in a country that is experiencing severe disruptions and a low rate of industrialization.
From our correspondent in Brazzaville,
The Sounda River will host this new dam, construction of which will begin in January 2025. It is located in Kouilou, the region home to Pointe-Noire, the economic capital of Congo. The works will last five years and will be carried out by the Chinese company China Overseas Company Limited. The expected production is between 600 and 800 megawatts. “ It is a dam, a large public work and also large works, comments Thierry Moungalla, Minister of Communications and government spokesperson. It has a high cost which can be around 1,300 billion FCFA [plus de 1,9 million d’euros]. The financing mechanisms are well oiled with the great partners who are our Chinese friends”he says.
Chinese pre-financing
In this period of African debt restructuring, the use of Chinese pre-financing was probably favored by the Congolese authorities, estimates economic analyst Alphonse Ndongo. “ In these times of financial drought in Congo, I don’t see where the government can find funds to finance the construction of this important dam. This is Chinese pre-financing and I think it should be based on what we call the model build-operate-transferwhich simply means that you build, operate and this allows you to be reimbursed according to a concession period that the State will certainly find between itself and the Chinese operator ».
Attract investors
Officially, Congo already produces 720 megawatts, but according to specialists, a good portion is lost due to poor maintenance of the distribution network. Sounda’s production will add to this power. “ This will increase the energy supply to households, anticipates Alphonse Ndongo. But also, in a context where we talk about industrialization, at its peak Zlecaf [Zone de libre échange continentale africaine, Ndlr]i.e. the free trade market, Congo must have proposals to put forward in industrial terms ».
« Electricity is an important factoradds Mermans Babonga of the Consumer Rights Observatory. And, if we want to attract foreign direct investment, there must be sufficient electricity supply in the country. So, we hope that with the construction of the Sounda Dam, the country will attract large industrialists to come and invest in the country. And this will help create the jobs that young people are waiting for. ».
Congo already produces more electricity than local consumption requires. But it exports some of it and its electricity grid is not developed enough to serve the entire population.
Interview Between Time.news Editor and Economic Expert Alphonse Ndongo
Time.news Editor: Welcome, Alphonse, and thank you for joining us today to discuss the upcoming construction of the Sounda Dam in Congo. This project seems crucial for the country’s future energy supply. What’s your take on the significance of this dam for Congo?
Alphonse Ndongo: Thank you for having me. The Sounda Dam represents a vital step forward for Congo, especially considering the ongoing severe disruptions in electricity supply. With an expected capacity of 600 to 800 megawatts, the dam could substantially boost energy availability, which is essential for both households and industries. Increased electricity supply can stimulate industrialization, which is currently at a low level in Congo.
Editor: That’s a crucial point. You mentioned industrialization. How do you think the Sounda Dam could impact the broader economic landscape of the country?
Ndongo: Improved electricity supply is a foundation for industrial growth. With reliable power, businesses can operate more efficiently, which could lead to job creation and economic diversification. Currently, many industries are hampered by electricity shortages, which adversely affects productivity and hampers foreign investments. The Sounda Dam could be a game changer in attracting investors who have been cautious due to the unreliable energy infrastructure.
Editor: The project is set to be handled by China Overseas Company Limited, with significant financial backing from China. What are your thoughts on this partnership, especially given the current climate of debt restructuring in Africa?
Ndongo: The partnership with Chinese companies reflects a broader trend in Africa where nations seek external investments to fund large infrastructure projects. Given the financial constraints in Congo, as you’ve noted, this pre-financing arrangement with China is likely a pragmatic choice. However, it’s essential for the Congolese government to manage this debt carefully, as over-reliance on Chinese financing can lead to long-term economic challenges if not handled properly.
Editor: You raise an important concern regarding debt management. What do you envision as potential risks or challenges associated with this project?
Ndongo: One major risk is the potential burden of debt repayment. If the project doesn’t yield the expected returns—such as increased industrial output and economic growth—the government might find itself in a difficult financial situation. Additionally, there are concerns about environmental impacts and the displacement of local communities. Transparency in how the project is managed and how local communities are engaged in discussions is crucial.
Editor: Indeed, addressing environmental and social concerns is vital for any large infrastructure project. What measures do you think the government should take to mitigate these challenges?
Ndongo: The government should ensure that there are thorough environmental assessments conducted prior to construction. Engaging with local communities early in the planning phase can help in addressing their concerns and securing their support. Furthermore, establishing accountability mechanisms to track the project’s financial and environmental impacts would be prudent.
Editor: Excellent points, Alphonse. As we wrap up, if successful, what future steps should the Congolese government consider in its energy strategy beyond the Sounda Dam?
Ndongo: The government should consider diversifying its energy sources to include renewables like solar and wind energy. Investing in energy efficiency and upgrading the existing grid infrastructure would also be essential. Long-term, creating a sustainable energy policy that integrates these various sources will not only provide stability but also promote resilience against future economic fluctuations.
Editor: Thank you, Alphonse, for your insights. The Sounda Dam project holds great promise, and it will be interesting to see how it unfolds and impacts Congo’s future.
Ndongo: Thank you for having me. I, too, look forward to seeing how this project develops!