Republic of Sudan

Merowe Dam

(Supplementary Loan)

Loan No.:

528

Interest Rate:

3.0%

Beneficiary:

Ministry of Irrigation and Water Resources, and National Electricity Corporation

Grace Period:

6 years

Project Cost:

KD 582.6 million

Maturity:

25 years

Amount of Loan:

KD 58.0 million

Repayment:

39 semi-annual installments

Date of Loan Agreement:

05/03/2008

First Installment:

6 years following the first disbursement

Date of Effectiveness:

27/03/2008

 


Objectives:

The project aims at meeting part of the increasing demand for electricity in Sudan as well as developing the northern regions of the country, through the construction of a dam on the Nile River near the city of Merowe which is located 350 km north of the capital Khartoum. The project also includes the construction of a hydropower station with an installed capacity of 1250 MW, and electrical transmission lines from the station to the demand centers in the northern and central regions of the country.

Description:

The project, which is expected to be completed by the beginning of 2010, includes all civil works necessary to construct the dam with a storage capacity of 12.5 billion m3, a hydropower station, electrical transmission lines and sub-stations. The project also includes the furnishing and installation of all hydro-mechanical, electromechanical and electrical equipment required for the dam's construction and operation, as well as the provision of consultancy services required for studies and construction supervision. The main components of the project can be summarized as follows:

  1. Dam: This includes the construction of concrete and embankment sections of the dam on the Nile River channel. The dam crest will be 9.7 km long and 10 m wide, and its height 60 m above river bed. The dam also includes the appurtenant structures such as spillway, water intakes and sediment sluices, as well as a hydropower station. The construction of the dam includes the following major works:
    1. Preparatory Works: This includes the construction of housing facilities for construction supervision and operations personnel, the construction of 27 km access roads from Karima to the dam site, a loading platform and storage areas at the nearby railway station.
    2. Civil Works: This includes excavation, fill, drilling and grouting works, and concrete works for the dam and its appurtenant structures. It also includes all civil works for the hydropower station, as well as all necessary instrumentation and monitoring equipment for the operation of the dam.
    3. Mechanical Works: This includes the supply and installation of gates, pipes and related mechanical equipment for the dam and its appurtenant structures.
  2. Hydro-Mechanical, Electromechanical and Electrical Works: This includes the following major works:
    1. Hydro-Mechanical Works: This includes the supply and installation of gates, penstocks, cranes and related hydro-mechanical equipment necessary for the control of water, and operation and maintenance of the dam and its appurtenant structures.
    2. Electromechanical and Electrical Works for the Power Station: This includes the furnishing and installation of ten turbines, each rated at 125 MW, and ten 150 MVA generators. It also includes the construction of 500 and 220 kV switchyards, and the supply of the necessary transformers and bus bars, as well as control, protection and monitoring systems.
    3. Transmission Lines: This includes the construction of 500 and 220 kV overhead lines having a total length of 1700 km, as well as seven sub-stations.
  3. Consultancy Services: This includes the consultancy services required to review the conceptual design, prepare the detailed design, and construction supervision.

Financing:

The supplementary Arab Fund's loan covers about 9.9% of the total project cost, and about 39.7% of the financing gap of about KD 146.0 million due to an increase in costs of construction contracts. In addition to the supplementary loan provided by the Arab Fund, the Saudi Fund for Development and the Abu Dhabi Fund for Development will provide loans equivalent to KD 16.2 million and KD 13.5 million, respectively. The Kuwait Fund for Arab Economic Development will also provide a loan of KD 15.0 million. The Government of Sudan will cover the remaining cost of the project and any additional cost that may arise.


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