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Lighting up Economic Opportunitiesin Sub‐Saharan Africa
Track: Business Trends & Regulatory Issues IISession: 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
With the E3 Factor
Photo: csr.cisco.com
Photo: Africanbusinessmag.com
“It always seems impossible until it is done.” ‐ Nelson Mandela
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Insights & Lessons Learned
Africa – Growth Continent
Huge market potential for off‐grid and mini‐grid power solutions, especially in rural areas
Abundance of raw materials and labor
Consistent trend of IPPs, private companies and entrepreneurs investing in the region
Sustainable development and good governance
Humanitarian aspect of improving lives and economic opportunities. Its about the children –our future generations ‐ Collaboration and completing something better than you found it Photo: thebreakthrough.org
70% of African population is without electricity.
By 2030 over 50% is expected to remain without access to electricity
Introduction: The Current Scenario
Photo: aphg2015mhs.wordpress.com
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Sub Saharan Africa
European Union
China
United States
Electricity Consumption 2014
Electricity Consumption 2014 (Billion Kilowatt Hours)
Source: Fact Sheet: Power Africa
Introduction: The Current Scenario
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
37.4
020406080100120
Access to Electricity ‐ Percentage of Population 2014
480.6
01000200030004000500060007000800090001000011000120001300014000
Electric Power Consumption (kWh per capita)2014
Source: World Development Indicators | WorldBank.org
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Combustion Associates Inc. www.cai3.com
U.S.A. ‐ HQ
555 Monica Circle, Corona, California, U.S.A.
Total Solutions Company
• Engineering
• Manufacturing
• Installation
• Start‐Up & Commissioning
• Training
• O&M
Overview: Combustion Associates, Inc. (CAI)
CAI Experience in SSA
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Overview: Power Generation SystemsSpirit 1
MW
Engineering | Manufacturing | Installation
1‐25 MW power‐gen systems
Distributed Generation
CHP
Multiple fuel capacity
BOP | Substations | T&D
Spirit 2
MW
Spirit 1
0 MW
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Speaking from Experience:
Bidding for the Project and Securing It
• Navigating perceived vs actual risk • Legal Regulatory Risk• Access to capital• Skills development
CAI Awarded the project based on:• EPC Capability• E3 Factor• “Win‐win” Philosophy
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Overview: 80MW Power Plant, Benin
Greenfield to Turn‐Key Construction
The First of Its Kind in Benin
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Overview: 80MW Power Plant, Benin
Greenfield to Turn‐Key Construction
The First of Its Kind in Benin
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Overview: 80MW Power Plant, Benin
At the California Facility
The First of Its Kind in Benin
Design and Engineering Procurement Manufacturing
TestingAssembly
The First of Its Kind in Benin
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Overview: 80MW Power Plant, Benin
Greenfield to Turn‐Key Construction
The First of Its Kind in Benin
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Overview: 80MW Power Plant, Benin
Balance of Plant
The First of Its Kind in Benin
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Speaking from Experience:
Overcoming Challenges
Contract:• Two languages – English & French• Legal advisors in both countries• Bureaucracy
Financing:• L/C took a year• EXIM Bank support was crucial
Finding Local Contractors• Advertising and vetting• Screening for capabilities and licensingLack of skilled workforce
Logistics:• Transporting from Port of Cotonou to Maria Gleta
Language & Culture:• All paperwork in English and French• Interpreters‐ French, Fon, English
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Speaking from Experience:
CAI Partners
Benin Embassy U.S. Department of Commerce Advocacy Center U.S. Export Import Bank U.S. State Department City Council Congressman and Senators
CAI Technical Team Members Strategic Suppliers Dedicated Logistics Providers Local African Partners
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Speaking from Experience:
1. Then Benin President Thomas Boni Yayi visited the site
2.Media coverage
3. Dignitaries came to see the power plant complex
4. Locals took site tours
1 2
3 4
The First of Its Kind in Benin
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
Overview: 80MW Power Plant, Benin
Greenfield to Turn‐Key
The First of Its Kind in Benin
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate
The E3 Factor
Employment
• 100s of local Benin citizens employed for three years
• Procurement of steel, concrete, cables etc. in Benin benefitted local businesses
• In Calif, CAI added 40 more jobs in special trades
Education
• Training and mentoring of local workers at every stage
• Classroom instructions for local utility staff
• Raised skills levels
Empowerment
• Affordable, reliable electricity for thousands
• Boost in local productivity
• Improved skills, better‐paying jobs for locals
Photo: Gen‐onethree.com
Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America
Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate