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June 8,2020
IIB DEVELOPMENT GROUP LLC, a limited company in the District of Columbia (“IIB-DG”) having its registered office in Washington DC, USA signed on June 8,2020 with the Province of South Ubangi of Democratic Republic of Congo represented by the Governor for the development, construction, and operation of 300 MW Hydro-power to power generation facility and accompanying infrastructure, to be located in DRC. Under 25 years concession, IIB-DG will develop, construct and operate a 300 MW Power plant located in South Ubangi, DRC. Under 25-year PPA, IIB-DG will sell power to the Province of South Ubangi, Export power to Central African and Republic of Congo (Brazza ville) with whom South Ubangi share borders.
The Project is expected to have a positive developmental impact in DRC through the installation power generating assets for commercial and industrial businesses. Economic growth in the Province is constrained by inadequate power infrastructure, resulting in load shedding, blackouts, and a reliance on fossil-fueled, private generators.
Demand for electricity in RDC is expected to follow economic growth of 2% per year. The Project will help meet this increasing demand. By providing more efficient baseload power, the Project will help improve the country’s energy supply and price stability. The Project will also assist in achieving the country’s goal of diversifying its generation base and reducing reliance on imported energy.
About IIB-DG Africa
IIB Development is a consortium of US based companies specializing in financing and infrastructure development. IIB Development Group brings together experts in synergistic industries to develop turnkey innovative solutions in infrastructure and development – housing, roads, water and wastewater, energy, railways as well as financing of all these projects IIB Development Group is a leading provider of an innovative building system capable to reduce construction time in the high-scale housing projects, thus offering a strong solution in the socio-economic development of emerging markets throughout the world. Building system allows fast, efficient, and large-scale construction through the construction of innovative products and processes.
About Democratic Republic of Congo (DRC)
The Democratic Republic of Congo is among the countries with the lowest electrification rate. Less than 8 % of the Congolese population has access to electricity, 35% in urban areas (50% in Kinshasa) and less than 1% in rural areas.
There is a strong regional disparity in access to electricity and in particular very low in the northern part of the country where the province of South-Ubangi is located. While the province has enormous hydrographic potential that offers the province the opportunity to develop hydroelectric power plants, mini or small but also other hydroelectric link applications better suited to the market structure of the province.
There are sites on the most rural parts of the province and unfortunately no part of the province is served. Currently, the Democratic Republic of Congo does not have an integrated national electricity distribution network, but only 3 regional networks, not interconnected (the West network (Kinshasa and Central Congo), the East network (South Kivu and North Kivu) – South network (Lualaba and Haut Katanga).
South-Ubangi Province is located at North – West of the Democratic Republic of Congo. It is between 4 o 21′ Latitude N and 3 o 40′ of Latitude S, 16 o45′ Longitude E and 18 o50′ Longitude W. It covers a area of 52,896 km2. The Province of the South-Ubangi is bounded:
- To the North by the Central African Republic (border almost 1.000Km);
- To the North – East by the BOSOBOLO massif, an extension of the Ubangi’s plate;
- To South by swampy forests and the line separating the basins from water basins of the Ngiri and Mongala (Akula road);
- In the West by the City of Zongo, the Central African Republic and the Republic of Congo (Brazzaville) along the Ubangi river;
- In the East by the Province of North-Ubangi via the Territory of Businga).
As for its population, the latest statistical data published in 2016 by the provincial Ministry of the Interior; Population Statistics and provided to the provincial government by a group of experts who carried out this study on the South-Ubangi, indicate the state of a population of 4,105,783 inhabitants, with an average density of 66.17 inhabitants per km2.
The energetic fracture being very important for the province of South- Ubangi with 4,105,783 inhabitants; the rate of electrical penetration is non-existent. With this immense hydrological potential, it is necessary to mobilize more funds from investors to develop several programs of development of hydropower plants in accordance with the power described above. The project has the potential to increase local income and create
wealth. The project will provide various types of benefits, including local employment opportunities where it is estimated that at least 1,876, jobs for skilled and unskilled labour will be created during the implementation of the power plant and transmission line projects, and 120 jobs during the operation of the plant and 19 substations.
In addition, the number of people responsible for the maintenance of the right of way will be increased. A reliable supply of electricity to the province will create a diverse source of wealth for the communities in the project area as well as the general population. The transmission line project will bring electricity to and supply households in the province’s cities, towns and cities, as well as industrial, mining and commercial consumers of electricity.
More importantly, it will help expand the rural electrification program. Local populations will benefit from improvement of water supply facilities, and the rehabilitation of the electricity supply to hospitals, health centers and health posts in the region, as well as the rehabilitation of sewerage systems and the rehabilitation of the electricity supply to hospitals, health centers and health posts in the framework of the corporate social responsibility programmes of “South- Ubangi Electricity Company.
Media Contacts
Carolina Mateos
Corporate Affairs and Investor Relations
IIB Development Group
info@iibdevelopmentgroup.com
