MINISTRY OF ENERGY AND MINERALS PAGE 1 OF 8

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1 PAGE 1 OF 8 OPENING SPEECH BY HON. CHARLES M. KITWANGA (MP) DEPUTY MINISTER FOR ENERGY AND MINERALS ON THE OFFICIAL OPENING OF THE 9 TH EASTERN AFRICA POWER POOL (EAPP) COUNCIL OF MINISTERS MEETING (COM) IN ADDIS ABABA, ETHIOPIA; 25TH APRIL, 2014 Honorable Ministers responsible for Energy Affairs in the Eastern Africa Region, Chairman of the Steering Committee of the Eastern Africa Power Pool, Senior officials, Development Partners, Representatives of Regional organizations, Distinguished Guests, Ladies and Gentlemen. Good Morning It is my great pleasure to attend this 9 th Council of Ministers Meeting of the Eastern Africa Power Pool (EAPP). Let me register my sincere appreciation to you hounorable Ministers for finding time in your many responsibilities to come to Ethiopia to attend this important meeting. I

2 PAGE 2 OF 8 would like to thank the government of the Federal Democratic Republic of Ethiopia for hosting this extraordinary COM meeting poised to make important decisions. I understand that this Meeting would not have been possible without the hard work and effective co-ordination and planning by the EAPP Secretariat and the kind support of our host. I feel honored to address this important meeting which is crucial to all member states especially now where the energy sector in general is required to fostering the social economic development. Distinguished Guests, This meeting is taking place only four month after the previous one which was held in Bujumbura, Burundi in January, You will agree with me that during the interlude, a lot has happened in the political and social spheres at the global, regional and sub-regional fronts. However, I am confident that the commitment of our Governments towards the integration of the power systems of the Eastern Africa Region is still intact. Africa is facing many challenges one of which is a need to improve the quality of life of our citizen. Apart from the challenges in improving literacy, health and access to clean water, is the very low rate of electrification, inadequate power generation and per capita consumption of energy. Lack of access to quality and affordable power has hindered improvement of quality of life, of services and industrial development.

3 PAGE 3 OF 8 There is dire need to improve the availability of modern energy such as electricity for Industrial, Commercial and household use. Dear Delegates, The cooperation amongst the governments and utilities in our region should allow us to optimize the utilization of resources in order to improve the power supply situation. This can best be realized through coordinated development of the available resources guided by a Regional Power Master Plan. I note the ongoing update of the Regional Master Plan and the completed Interconnection code study as a first step towards optimization of future Generation and transmission projects development. Ladies and Gentlemen, Matters related to Energy and Power cannot be isolated from other aspect of modern life. Millennium Development Goals were put together to ensure improvement of human life. Issues of global warming, climate change and poverty reduction are here with us. In the Eastern Africa Region, we have the potential of exploiting clean energy resources. As

4 PAGE 4 OF 8 you are aware, we in this part of Africa, have plenty of Hydro power, geothermal and wind power generation potential. I appreciate member countries commitment to the development of Major Power Transmission infrastructure within the broader framework of regional integration. The planned 400 KV Tanzania-Kenya Interconnector and the proposed Zambia-Tanzania Interconnector are the major ones to be noted. The implementation of the Zambia-Tanzania Interconnector enables power exchange between EAPP and Southern Africa Power Pool The completion of the Tanzania-Kenya interconnector would signify a major step towards full integration of the power systems of EAPP, taking in to considerations the ongoing development with regards to the 500KV HVDC Interconnector between Ethiopia and Kenya, and the interconnection projects in the Nile equatorial lakes region. With the foreseen development of the 400KV Zambia-Tanzania and the 600KV HVDC Sudan-Egypt interconnectors, our efforts would contribute to the envisaged Inter-Africa Power Trade.

5 PAGE 5 OF 8 Honorable Ministers, I am glad to note that there are now committed power generation projects under different stages of development in our region which avails the required power for exchange over the interconnectors under construction. The 1900MW Gibe III, the 6000MW Grand renaissance Hydro power projects in Ethiopia, the 188MW Isimba, the 600MW Karuma and Ayago hydro power project in Uganda, the 145MW Ruzizi III Hydro project in the great lakes region, the gas fired power plants in Tanzania and the Geothermal and wind power developments in Kenya are some of the examples to be cited. As you are aware, there is significant geothermal potential in Kenya, Rwanda, Ethiopia, Tanzania and Uganda. There is massive Hydropower potential in DRC, Ethiopia, Uganda and Tanzania yet to be taped. In the long term, the massive economically developable hydro power potential in DRC, which includes the 44,000MW Grand Inga hydro power plant, will play crucial role in the power sectors of Eastern, Western and Southern Africa. The EAPP shall provide the necessary platform for optimal development and utilization of the available potential through imparting regional perspective into the national power sector master plans.

6 PAGE 6 OF 8 Ladies and Gentlemen, Distinguished Guests, Allow me once again to emphasize the COM s commitment to playing its part to ensure that the EAPP achieve the objectives stated in its founding agreements. The achievement so far is noted but this must be enhanced to ensure that there will be adequate capacity in time to foster further development of necessary infrastructure and to manage power exchanges in the most efficient manner. I note our deliberations in the last extraordinary COM, related to the appointment of the new Executive Secretary, recruitment of additional staff, Human Resource Governance document and other issues of interest to the development of EAPP. In relation to the appointment of the new Executive Secretary, the COM, during the last meeting instructed member utilities to submit two competent CVs from their respective countries to the Chairman of the Steering Committee (SC). It was also agreed to let the Steering Committee conduct evaluation of the CVs and submit the top three candidates to the COM for final appointment of the EAPP Executive Secretary.

7 PAGE 7 OF 8 Ladies and Gentlemen The appointment of the Executive Secretary and the recruitment of the additional staff combined shall provide the Secretariat with minimum number of staff to function. As you are aware, the Secretariat has worked for about a year without an Executive Secretary, which obviously added significant burden to the management of the Secretariat, and accordingly affecting the performance of the Secretariat. I am informed that the Steering Committee has already prepared recommendation on the appointment of the Executive Secretary for our approval. Further to that, the Independent Regulatory Board (IRB) also prepared recommendation for consideration by the COM. It is my hope that from now, the Secretariat shall focus on the delivery of tangible outputs related to power projects, harmonization of technical and commercial standards, capacity building activities etc. In the past one year we have had a number of ad-hoc committee, Extra- ordinary SC and COM meetings. It is time now to empower the Secretariat and resume regular SC and COM meetings. In line with that I call upon fellow Ministers to ensure that the COM makes the required decision today and enable the Secretariat perform to the level of our expectations.

8 PAGE 8 OF 8 Honorable Ministers, Having said that, I now declare the extraordinary Council of Ministers Meeting of the Eastern African Power Pool is officially opened and wishes you all a fruitful deliberation and a pleasant stay in Addis Ababa. THANK YOU FOR YOUR ATTENTION