Home
     Welcome Note
     The Embassy
     Sudan- India
          Relations
     Country Profile
     Investment
          Climate
     Business and
          Economy
     Travel & Tourism
     Visa Regulations
     News & Views
     Useful Links
INVESTMENT INVESTMENT SYSTEM LIVESTOCK AGRICULTURE INFRASTRUCTURE
INDUSTRIAL SECTOR OIL INDUSTRY OIL SECTOR MINING SECTOR ENERGY SECTOR
INVESTMENT OPPORTUNITIES IN THE KHARTOUM STATE
REQUIREMENTS FOR REGISTRATION OF FOREIGN DRUG MANUFACTURING COMPANY
GENERAL REQUIREMENTS FOR THE REGISTRATION OF PHARMACEUTICAL PRODUCTS
ENERGY SECTOR



Investment Opportunities in the energy sector
Energy is one of the most attractive areas of investment. Present and future prospects of energy sources include petroleum production and refining, thermal power generation, hydropower generation and renewable energies. One of the primary objectives of the National Electricity Corporation is to increase the current National Electric Grid by more than ten times by the year 2002. In addition to the cost-effective hydropower in the country, building thermal power generation plants near oil refineries seems attractive and economically sound. Sudan is rich in solar energy, with daily solar radiation and sunshine availability for more than ten hours throughout the whole year. Uses of biogas are also present with all the essential local requirements.

For the Generation and Transmission Development Programme the government is inviting investors in Independent Power Producing (IPP) arrangement.

An increase in the generating capacity should also have corresponding important investments for transmission and distribution lines, which could account for more than a third of capital expenditures in this sector in developing countries, Strategists in the energy sector are keen

· to supply energy to all industrial sectors which are dependent on domestic energy surplus.
· To draw a kind of co-ordination between the energy producing sector, and the consuming ones.
. to preserve the environment by organizing exploitation of the natural energy resources especially those connected to the forest, and to reforest new areas in order to create an ecological balance.
. to technologically promote the energy techniques especially in fields of new and renewable energy that depends on domestic sources.
. to establish energy preservation and conservation policies.
· to train and develop the human manpower employed in the different fields of energy supply.
Due to the huge increase of new capacity requirements, the electricity sector can no longer depend on the government for new investment, especially, when the government has to cut public expenditure in order to balance the budget, control inflation and address various requirements in the social sectors, as well as to meet public debt reduction targets. The Government formulated the National Energy Plan with the following objectives:

to expand electric generation and services to regions and towns in order to promote economic and social development and improve the quality of life for the people.

. to eliminate power shortages and unreliability of supply, by effecting huge increase in the power generation capacity within the coming years.
. to encourage the private sector to invest in the power sector.
. to provide electricity at the lowest possible cost to meet the needs of the growing economy.
. rehabilitating and improving the system efficiency.
· to encourage the interconnection with neighbouring countries.
. to manage the existing load and future growth in demand to ensure better utilization of power.

In 1999 a Genera] Secretariat was established to represent the National Electricity Corporation in dealing with independent power producers. Foreign and local investors are to be approached to play their role. Independent Power Producers (IPP) are to be welcomed in one of the following forms:

. Build, Own & Operate (BOO)
. Build, Own, Operate and Transfer (BOOT) Build, Operate and Transfer (BOT) Build, Own and Lease (BOL)
. Rehabilitate, Operate and Transfer (ROT) Rehabilitate, Own and Operate (ROO)
For further information on IPP and the new generation projects please contact the Secretariat General at the following address:

Independent Power Producer and New
Generation Projects General Secretariat,
99, Gama's Avenue,
Khartoum, Sudan
Tel: 00-249-11-785007 Ext.150
Tel/Fax: 00-249-11-782351
Email: aminl@mail.necsudan.com
Email: ippngp@niail.necsudan.com

NEW AND RENEWABLE ENERGY
There are new and renewable energy schemes in Sudan including improved charcoal stoves, solar energy and wind power. There are also various researches and activities on biogas technology and stowage of peanut shells, bagasse and cotton stalks and other agricultural remains into compressed cubes. Investment in these areas, including the provision of relevant technologies, is also in demand.

NATIONAL ELECTRICITY CORPORATION
Historical Background
Generation of electricity started in Sudan in 1908. The first power station was built in Burri in the Khartoum area with a capacity of 100 KW. It was administered and operated by Sudan Light and Water Company. In 1925 this was increased to 300KW. In 1956 the first steam thermal unit were installed in Burri Station (2x5MW then 2xIOMW).

With the increasing demand for electricity, power stations were built in different towns e.g. Obcid, Karima, Juba, Dongola, Port Sudan and Malakal.

Following the construction of the Sennar Dam the first hydropower station (2x7.5MW) was commissioned and a transmission line of 110 KV was built from Sennar to Kilo X sub-station in Khartoum. This was followed by another power station (12.6MW) in Kashm Algirba in 1964. The main hydropower station was commissioned in 1973 at Rosiers Dam with a capacity of (3x30MW) and another transmission line of220KV was built to transmit this power to Khartoum Kilo X. The extension in thermal generation continued to cover the high demand for electricity in 1985. Burri was extended by installation of (4x10) & (2x10) diesel engines, and steam turbines of(2x30MW) planted in Dr. Sharief Power Station at Khartoum North.

This was increased by addition of (2x60MW) in 1990, when gas turbine engines were installed in Burri (15MW), Khartoum North (2x20MW) and Kuku (2xlOMW) Kilo X (10MW).

GENERATION IN SUDAN
Fifty percent of electricity production in Sudan is from hydro-power stations. There are plans to increase the hydro-generation by constructing more dams with a priority for electricity production in (Kajbar) and (Hamdab) in the River Nile and Northern States.

The long-term plan for electricity production in Sudan was prepared in 1990 for the period 1990-2015. The potential for hydro-generation in the River Nile was evaluated, the actual point for electricity production was fixed and the capacity was estimated.

Now thermal generation depends on furnace, diesel, and gas oil. A good potential for thermal generation to grow and meet the demand is evident following the discovery of oil in Sudan as a key economic resource in the country.

INVESTMENT IN ELECTRICITY:
To meet the growing demand for electricity in all sectors, commercial, agricultural, and industrial and mainly domestic, NEC invited investors and financiers to build power plants in Sudan. The Secretariat for new and independent generation was established. NEC prepared the agreements, which govern the relationship with the investors.

The export of oil encourages investors and financiers from Canada, Malaysia, Spain, Gulf Countries, Europe, Luxembourg, besides local investors to start business in Sudan in this sector where great benefits and cost-effectiveness are guaranteed.

Coupled with this development, the NEC intensified its contacts with similar regional and international bodies and managed to sign a co-operation contract with the French Electricity Company (EDF) with a view to upgrade the corporation's technical capabilities in areas of generation and distribution and areas of human resource development.

Several workshops and seminars were organized by the NEC with the participation of some organizations in the Arab and African regions in order to exchange experiences and enhance cooperation with electricity producers in the region as well as to invite technical and financial support from inter-national institutions.

With the view lo enhancing customer services, a pre-payment meter system was successfully introduced. The new system saves time and helps in solving the problems of arrears in addition to rationalising consumption.


©Copyright 2002-2007 Embassy of the Republic of the Sudan , New Delhi, India.  Contact Us
Designed and Developed by
IANS Solutions