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The Project involves construction of distribution networks in Juba. The components of the Project comprise the following:
A. Construction of Medium Voltage Network B1. 33 kV Medium Voltage Line B2. 33/0.415 kV Transformer Station B. Construction of Low Voltage Network C1. 415/240 Volt Line C2. Service Connection C3. Street Lighting D. Project Management D1. Engineering Services D2. Audit Services.
The existing low level generation capacity coupled with weak distribution networks has resulted in supply constraint leading to forced blackouts and load shedding in Juba. Consequently, most households and businesses are supplied from constrained, costly and unreliable distribution system and generation. This has adversely affected the quality of life and services and restrained business development in and around Juba.
The South Sudan Electricity Corporation (SSEC), which is a Government owned utility, since the Comprehensive Peace Agreement (CPA) has face challenges in providing satisfactory service to its customers. A combination of non-cost recovery tariffs and shortages in foreign exchange has resulted in limited maintenance on the already aging and obsolete plants and power distribution networks. Consequently, the power system in Juba has suffered forced outages and high network losses resulting in load shedding. In order to address the supply constraints in Juba, SSDP and the subsequent SSIAP have proposed the development of Fula Rapids HPP and rehabilitation and expansion of the distribution system along with Juba PDSRE as short-to-medium measures.
There is a mismatch between power supply cost and the revenue generated under SSEC operations. For instance, in 2011, the power sold and generated were 70 GWh and 99 GWh, respectively. The corresponding operating revenue and operating expenses were US$ 17 million (US$ 0.25/kWh of average tariff) and US$ 71 million (US$ 0.70/kWh on generated energy), respectively, resulting in operational loss of US$ 54 million (US$ 0.54/kWh on generated energy). The operational loss then was subsidized by Government which amounted to 4 percent of 2011 budget of US$ 1.2 billion . The strengthening of Juba power distribution networks will reduce generation supply cost (from US$ 0.70/kWh to US$ 0.13/kWh under PPA) and system power loss (from 25 percent to 12 percent in the short-to medium term), respectively. Financial evaluation shows that the Project would enable SSEC generate sufficient revenue to cover its operational expenses and even spare surplus for investment. This would lessen Government's subsidy to the power sector.
The relevant Project studies have been prepared. The Appraisal Mission together with SSEC/MoED will review and finalize the scope of work, detailed Project costs, implementation schedule and arrangements.
MUGUWA Andrew - RDGE1