ENERGY INVESTMENT AND BUSINESS CLIMATE
REPORT FOR OBSERVER COUNTRIES
THE ISLAMIC REPUBLIC OF MAURITANIA
Co -a u th o rs:
Mr Lehbib KHROUMBALY
Mr Can ÖĞÜTÇÜ
Mr Mohamed LEMINE CHEIKHNA
Mr Matteo BARRA
March 2016
This project is funded by The European Union
DISCLAIMER
Information contained in this work has been obtained from sources believed to be reliable.
However, neither the Energy Charter Secretariat nor the work’s author guarantees the accuracy or
completeness of any information published herein, and neither the Energy Charter Secretariat nor
the work’s author shal be responsible for any losses or damages arising from the use of this
information or from any errors or omissions therein. This work is published on the understanding
that the Energy Charter Secretariat and the work’s author supply the information but do not attempt
to render legal or other professional services.
The contents of this work are the author’s sole responsibility. They do not necessarily
represent the views of the Energy Charter Secretariat or any members of the Energy Charter
Treaty.
© Energy Charter Secretariat, 2017
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ISBN :
Reproduction of this work, save where otherwise stated, is authorised, provided the source is
acknowledged. All rights otherwise reserved.
1
“USD400 billion in energy investment needed for Africa until 2040”
IEA Africa Energy Outlook 2015
In G20 framework, 2015 was a period particularly dedicated to the promotion of energy
access in Sub – Saharan Africa. On this occasion, the Energy Charter participated to the
various G20 working groups on “Energy Sustainability” to contribute to the efforts on
improving access to energy in African continent.
The Energy Charter Treaty allows countries to increase their investment attractiveness and
provide a reliable legal framework for foreign direct investment. Several African countries
began their accession process to the Energy Charter Treaty in 2015 including Mauritania.
Access to energy is a key factor to improve living conditions, overcome poverty and enhance
sustainable economic growth. Insufficient access to energy acts as a significant barrier to
economic and social development in many countries. The G20 agenda in 2016 embraces
critical goals and challenges among which energy access still poses the biggest concern
worldwide. Policy incentives and recommendations are required to remove existing barriers
and to reduce number of population, which does not have an access to electricity.
FOREWORD
The essence of the Energy Charter process and its landmark impact on the decade of the
1990s have shown a path to foster international cooperation in the energy sector. Under the
cornerstone concept of national sovereignty, different governments across the world with
diverse perspectives and ideas on how to develop their energy sectors have been able to
implement international cooperation within the framework of their own energy policies,
promoting their integration into the global energy markets. The recent climate agreement
reached in Paris (COP21) only confirms that energy transition is at heart of international
relations for decades to come.
This report aims to provide useful insights and a basis of common understanding in the path
of Mauritania to become a Contracting Party to the Energy Charter Treaty. It is also my
pleasure to point out that this report served as basis for the accession reports prepared by the
Republic of Mauritania to accede to the Energy Charter Treaty. It is therefore my great
pleasure to present to you this useful report. I am confident that it will contribute to deeper
involvement of many other African countries within the Energy Charter Process.
Dr Urban Rusnák
Secretary General
2
ACKNOWLEDGEMENTS
The information contained in this report served as basis for the accession reports prepared by
Mauritania to accede and become a Contracting Party to the Energy Charter Treaty. The
report was prepared by
Mr Lehbib Khroumbaly, from the National oil Company of
Mauritania,
Mr Mohamed Lemine Cheikhna from the Ministry of Energy and Mines,
Mr
Can Ogutcu and
Dr Matteo Barra from the International Energy Charter Secretariat,
during the year 2015.
The International
Energy
Charter
Secretariat,
in
collaboration
with
the
European Commission, DG Development and Cooperation, has developed a capacity
building programme with African countries to introduce them to the universal market-
based principles enshrined in the
Energy Charter Treaty, and to assess their energy sectors
against these universal principles. The objective is to promote an investment friendly
regulatory environment that is necessary to address the energy challenges facing the African
continent.
The report "Energy Investment and Business Climate Report for Mauritania” has been funded
under the EU Technical Assistance Facility for the Sustainable Energy for All Initiative –
Western and Central Africa and is the result of the capacity building programme that for three
months brings secondees from African governments to the Energy Charter Secretariat in
Brussels. The secondment of a civil servant designated by the Ministry Energy of Mauritania
and the elaboration of this report are part of a broader strategy aiming to engage the country
in further energy policy reform in line with international standards.
The Energy Charter Treaty is a multilateral international treaty concluded in 1994 currently
in force among 54 contracting parties from Europe, Central Asia, South Caucasus and East
Asia. The Treaty offers a multilateral cooperation platform for the promotion and protection
of energy investments.
The Energy Charter Secretariat offers its technical assistance to
contracting parties and observer countries by means of energy investment country reports,
policy recommendations, model agreements, regional cooperation, seminars and training
programs, private sector dialogue.
The authors:
Mr Lehbib Khroumbaly is a senior economic advisor to the National oil Company of
Mauritania. He was seconded by the Ministry of Mines and Energy of Mauritania to the
Energy Charter Secretariat in 2015.
Mr Mohamed Lemine Cheikhna is an expert at the
Electricity Department of the Ministry.
Mr Can Ogutcu is responsible for providing policy support and assistance to countries
interested in acceding to the Energy Charter Treaty and in engaging with the Energy Charter
process at the International Energy Charter Secretariat. His main tasks include technical
assistance to governments in the accession stage to the Energy Charter Treaty.
Dr Matteo Barra is Senior Investment Expert at the Energy Charter Secretariat (Brussels,
Belgium). Dr. Barra acts as expert on the promotion and dispute settlement of international
energy investments under the Energy Charter Treaty. His main tasks include technical
3
assistance to governments (Mongolia, Morocco, Armenia, Latvia, Cyprus, Tajikistan),
cooperating with international organizations (IEA, IRENA, UNCTAD, OECD, ICSID, SCC,
PCA) and promoting dialogue with energy industry (Energy Charter Industry Advisory
Panel). He provides policy analysis in relation to investment dispute settlement and to energy
investment strategies. Dr. Barra holds a Ph.D. in International Economic Law (Bocconi) and
an LL.M. in International Energy Law and Policy (CEPMLP).
4
ENERGY CHARTER SECRETARIAT
Executive Summary
The purpose of this study is to analyse the investment climate, market structure and the
energy efficiency in Mauritania and its relation with the international standards that have been
developed for the energy industry. A manifestation of those standards has been expressed by
the
International Energy Charter, signed on May of 2015. More than 80 countries have so far
agreed on the importance of the development of sustainable energy markets, where there is an
improvement of energy security and efficiency in all value chains of the sector in a mode that
is economically, socially and environmentally viable.
Mauritania has decided to facilitate an access to its economy to foreign investors and
international donors, welcome foreign capital, knowledge and technology to unlock its energy
potential. Under a framework underpinned by constitutional, legal and institutional reform,
the government of Mauritania has decided to accede to the Energy Charter Treaty.
This innovative perspective, to elaborate long-term policy planning and to improve the
diversification of the energy mix, has opened the doors to this African country to other
sources of sustainable energy. This aspect also provides the foundation for the development
of a policy perspective that is more aligned with the objectives of sustainable development
and low carbon economy, which are now the basis of the global energy transition as agreed in
December 2015 in the COP21 in Paris.
The alignment of the principles and ideas that have driven Mauritania’s energy reform and
the benefits driven by the
Energy Charter Treaty is the key focus of this report. It will allow
the reader to have an understanding on how the universal concepts developed under the
Energy Charter Process benefit from the particular national development and implementation
in the modernisation and transformation of Mauritania’s energy sector. The accession of
Mauritania to the Energy Charter Treaty would certainly prove to the international
community that Mauritania is committed to head towards modern energy market and would
help the Mauritanian Government to create a level playing field and strengthen its position in
the context of regional energy cooperation.
5
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Table of Content
Acronyms and Abbreviations……………………………………………………………………………………………….………..8
1. GENERAL INFORMATION AND POLICY ISSUES……………………………………………………………12
1.1.
Area, position, climate ..................................................................................................12
1.2.
Energy Policy...............................................................................................................15
1.3.
Institutional structure and responsibilities for energy policy.............................................18
1.4.
Energy industry regulation ............................................................................................21
1.5.
Law No 2001-18 on the multi-sectorial regulator. ...........................................................21
1.5.
Energy prices ...............................................................................................................21
1.6.
Power Prices ................................................................................................................22
1.7.
Recent development and the structure; outlook and its structure.......................................25
1.8.
Electricity System, Production, Transmission and Distribution ........................................28
2. MARKET STRUCTURE BY SUB-SECTORS……………………………………………………………………..33
2.1.
Oil ...............................................................................................................................33
2.2.
Gas ..............................................................................................................................34
2.3.
Electricity Power (See Section 2.2: Power System, Production, Transmission and
Distribution)............................................................................................................................37
2.4.
Renewable Energy Sources ...........................................................................................37
3. FUTURE DEVELOPMENT AND INVESTMENT NEEDS IN EACH OF THE ENERGY
SUB-SECTORS………………………………………………………………………………………………………………..…..45
3.1.
OIL UPSTREAM .........................................................................................................45
3.2.
DOWNSTREAM .........................................................................................................45
3.3.
Gas ..............................................................................................................................46
3.4.
Electricity Power ..........................................................................................................47
3.5.
Renewable Energy Sources: ..........................................................................................51
4. MONOPOLIES AND PRIVATISATION ACCORDING TO EACH ENERGY SUB-SECTOR
Monopolies (legal, de facto, natural)…………………………………………………………………………………….54
4.1.
Investments opportunities in the privatization process .....................................................54
4.2.
Restructuring and privatization plans .............................................................................55
5. GENERAL LEGISLATION RELEVANT TO INVESTMENTS………………………………………….56
5.1.
Foreign investment legislation, including definitions and forms of investments.................56
6
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Table of Figures
Figure 1: Map of Mauritania ................................................................................................. 12
Figure 2: Installed Capacity................................................................................................... 26
Figure 3: Gross domestic consumption of energy, 1980-2010 .................................................. 26
Figure 4: Installed electrical capacity (MW) (Somelec, Delegated Service, Private) .................. 28
Figure 5: Available sources of power status............................................................................ 30
Figure 6: Network Transmission Mauritania 2013-2018 .......................................................... 31
Figure 7: Mauritania Banda Gas to Power Project................................................................... 36
Table of Tables
Table 1: General description.................................................................................................. 13
Table 2: Macroeconomic data ............................................................................................... 15
Table 3: Short Term Energy Policy by 2016 ........................................................................... 16
Table 4: Key strategic commitments of the Mauritanian Energy Master Plan by 2030 ............... 17
Table 5: Tariffs SOMELEC .................................................................................................. 22
Table 6: Grid existing tariff and proposed for on and off-network ............................................ 23
Table 7: Cost of production ................................................................................................... 23
Table 8: Energetic share on state budget, 2002-2012 ............................................................... 24
Table 9: Gross domestic consumption of oil product, 2000-2011 ............................................. 27
Table 10: Forecast for Demand Balance (in MW): .................................................................. 28
Table 11: Energy production according to source (GWHh)...................................................... 29
Table 12: Offshore Discoveries ............................................................................................. 33
Table 13: Key Operators in the field of exploration and production.......................................... 34
Table 14:Evolution of installed hydro potential ...................................................................... 37
Table 15:Financing of transport network investment costs between 2013 and 2030 ................... 48
Table 16:Financing of distribution network investment costs between 2013 and 2030 .............. 49
Table 17:Financing of investment costs for power plants between 2013 and 2030 ..................... 50
7
Acronyms and Abbreviations
ADER
Rural Electrification Agency (Agence d’Electrification Rurale)
ADU
Urban Development Agency (Agence pour le Développement
Urbain)
AEMP
Executive Agency for Microprojects (Agence d’Exécution des
Microprojets)
AFESD
Arab Fund for Economic and Social Development
AGR
Income Generating Activity (Activité Génératrice de Revenu)
AIDS
Acquired Immune Deficiency Syndrome AIS Automatic
Identification Syst
AMEXTIPE
Mauritanian Public Works and Employment Executive Agency
(Agence Mauritanienne d’Exécution des Travaux d’Intérêt Public et
pour l’Emploi)
ANADER
National Agency for the Development of Renewable Energies
(Agence Nationale de Développement des Energies Renouvelables)
ANAIR
National Refugee Integration Support Agency (Agence Nationale
d’Appui à l’Insertion des Réfugiés)
ANAPEJ
National Youth Employment Promotion Agency (Agence nationale
de promotion de l’emploi des jeunes)
ANAT
National Land Use Management Agency (Agence Nationale
d’Aménagement des Terrains)
ANRPTS
National Population and Secure Title Registration Agency (Agence
Nationale des Registres des Populations et des Titres Sécurisés)
APAUS
Agency for the Promotion of Universal Access to Services (Agence
de Promotion de l’Accès Universel aux Services) APC
Competency-based Approach (Approche Par Compétence)
ARE
Regulatory Authority (Autorité de Régulation)
BCM
Central Bank of Mauritania (Banque Centrale de Mauritanie)
CAPEC
Caisse Populaire d’Epargne et de Crédit
CCIAM
Mauritania Chamber of Commerce, Industry, and Handicrafts
(Chambre de Commerce, d’Industrie et d’Artisanat de Mauritanie)
CCLP
Consultative Committee on Poverty Reduction (Comité de
Concertation sur la Lutte contre la Pauvreté)
CDHAHRSC
Commission on Human Rights, Humanitarian Action, and Civil
Society Relations (Commissariat aux Droits de l’Homme, à l’Action
8
Humanitaire et aux Relations avec la Société Civile)
CDHLCPI
Commission on Human Rights, Poverty Reduction, and Integration
(Commissariat aux Droits de l’Homme, à la Lutte contre la Pauvreté
et à l’Insertion)
CDLP
Government-Donor Consultative Committee on Poverty Reduction
(Comité de Concertation Etat - Donateurs sur la Lutte contre la
Pauvreté)
CENI
Independent National Elections Commission (Commission
Electorale Nationale Indépendante)
CILP
Interministerial Poverty Reduction Committee (Comité
Interministériel de Lutte contre la Pauvreté)
CNAM
National Health Insurance Fund (Caisse Nationale d’Assurance
Maladie)
CNCCI
National Consultative Commission on International Trade
(Commission Nationale de Concertation sur le Commerce
International)
CNHY
National Hydrocarbons Commission (Commission Nationale des
Hydrocarbures)
CNTIE
National Council on Extractive Industry Transparency (Conseil
National de Transparence des Industries Extractives)
CPI
Investment Promotion Commission (Commissariat à la Promotion
de l’Investissement) CPM : Monetary Policy Council (Conseil de
Politique Monétaire)
CRDES
Regional Economic and Social Development Committees (Comités
Régionaux de Développement Economique et Social)
CTLP
Technical Committee on Poverty Reduction (Comité Technique de
Lutte contre la Pauvreté)
CTSPE
Technical Committee on Economic Program Monitoring (Comité
Technique de Suivi du Programme Economique)
CTSPE
Economic Program Monitoring Technical Committee (Comité
Technique de Suivi du Programme Economique)
DAPBI
Annual Initial Budget Programming Document (Document Annuel
de Programmation Budgétaire Initiale)
DGB
Directorate General of the Budget
DHR
Refined Hydrocarbons Directorate (Direction des Hydrocarbures
Raffinés)
EITI
Extractive Industries Transparency Initiative
9
FNRH
National Hydrocarbon Revenue Fund (Fonds National des Revenus
des Hydrocarbures)
GIP.SA
Oil Infrastructure Management Company (Gestion des
Infrastructures Pétrolières (Société Anonyme
HCPI
Harmonized Consumer Price Index
HDI
Human Development Index
HIPC
Heavily Indebted Poor Countries (Pays Pauvres Très Endettés)
HPI
Human Poverty Index (composite index)
IDB
Islamic Development Bank
ILO
International Labor Organization
IMF
International Monetary Fund
IMF
Minimum Flat Tax (Impôt Minimum Forfaitaire
IRM
Islamic Republic of Mauritania
MAED
Ministry of Economic Affairs and Development (Ministère des
Affaires Economiques et du Développement)
MDPMEDD
Ministry for Environment and Sustainable Development (Chargé de
l’Environnement et du Développement Durable)
MPEMi
Ministry of Petroleum Energy and Mines (Ministère du Petrole de
l’Energie et des Mines)
MPEM
Ministry of Fisheries and Maritime Economy (Ministère des Pêches
et de l’Economie Maritime)
OMRG
Mauritanian Office for Geological Inspection (Office Mauritanienne
de Recherches Géologiques)
OMVS
Organisation pour la Mise en Valeur du Fleuve Sénégal (the Senegal
River Basin Development Organization)
ONS
National Statistical Office (Office National de la Statistique)
RGPH
General Population and Housing Census (Recensement Général de
la Population et de l’Habitat)
SIGP
Geographic Information System for the Oil Sector (Système
d’Information Géographique Pétrolier)
SMH
Mauritanian Hydrocarbons Corporation (Société Mauritanienne des
Hydrocarbures
SNDD
National Sustainable Development Strategy (Stratégie Nationale de
Développement Durable)
SNIM
National Mining Industries Corporation (Société Nationale des
10
Industries Minières)
SOMELEC
Mauritanian Electricity Company (Société Mauritanienne
d’Elecctricité)
SOMIR
Mauritanian Refinery Industries Corporation (Société Mauritanienne
des Industries de Raffinage)
WILAYA
An administrative region governed by a Wali
11
1. GENERAL INFORMATION AND POLICY ISSUES
1.1. Area, position, climate
Size of the Country, population, climate and an Overview of the Economy:
The Islamic Republic of Mauritania (RIM) is located between the 15th and 27th degrees north
and 5th and 17th degrees west longitude and occupies in the West African territory around
1,030,700 km². It is limited by the Republic of Senegal to the south - west by Mali in the
southeast and east by Algeria in the North-East and Western Sahara to the north - west. To
the west, Mauritania is bounded by the Atlantic Ocean and a coastline of about 700 km.
Figure 1: Map of Mauritania
Source: 2015 – National Geographic Institute
12
Table 1:
General description
Position
West Africa
Area
1,030,700 km²
Administrative capital / Historical
Nouakchott / Chinguitty
capital
Population
3.461.041
Climate
Sahelian
Territorial division
13 regions( Wilayas)
Territorial division
54 Districts(Moughatas)
Political system
Presidential
Official language
Arab
Ouguiyas(MRO) 1.00 EUR=325.986 MRO
Official currency
Exchange rate as of 25 June 2015
1
Source: Office of National de Statistics (ON S)
Populated by almost 3,5 million people in 2000, Mauritania has a density of
2.43 inhabitants per km². Formerly nomadic, the population of Mauritania has experienced in
recent years a double process of settlement and urbanisation underpinned by the combined
effect of several factors.
The country is bordered west by the Atlantic Ocean and the Western Sahara; east by Mali;
and southwest by Senegal. The countries’ high desert dominance generates a dry continental
climate with temperatures which may vary significantly between day and night. Temperatures
are chiller at the coast due to sea winds and rather humid at the riverside. The country has
three seasons: (i) from November to April with sandstorms and moderate temperatures during
the day and cold at night; (ii) a season harmattan characterized by a north-east wind which
carries the hot and dry air and elevates the temperature; and (iii) a rainy season from August
to October with thunderstorms and intermittent rain, increasing humidity and temperatures
around 45 degrees.
The country has large deposits (gold, copper and iron ore) and oil reserves were discoveries
off the coast. These are added to the Chinguetti oil field, discovered in 2001. These various
resources doped by a flexible and attractive legislation concede an upturn in the economy of
Mauritania, which has promised a bright future in particular in the field of export of ores iron,
1 Office National de Statistique. www.ons.mr
13
gold, copper and oil as well as significant potential for uranium, phosphates, gypsum and
quartz.
Macroeconomic Development:
Macroeconomic objectives have been achieved with a steady growth at an average of 7% and
control inflation at a maximum level of 5% on average in 2013-2015. The acceleration of
growth and the Stabilisation Macroeconomic are based on:
i.
the deepening of structural reforms through: private sector development, reform of
incentive systems, put in place procedures to better financing of the economy, and
improve the liberalization of trade activities and the introduction of conditions for
healthy competition;
ii.
development of supporting infrastructure growth by the promotion and diversification
of energy supply and development of transport infrastructure and ICT development;
and
iii.
the optimal exploitation of sources of growth through sound management of Natural
resources generated by the oil and mining, fisheries and the maritime economy,
industrial development, tourism and crafts, agriculture and livestock.
In 2013, the priority of the Government was to establish a favourable economic environment
for poverty reduction and improvement of living conditions of the population through the
implementation of:
i.
Growth levels sustained economic in a stable macroeconomic framework;
ii.
strategies sectorial adapted to priority programs of the Government.
In this context, the authorities sought to pursue macroeconomic policies and structural
reforms to achieve in 2013 a real growth rate GDP 6.2%. The current account deficit was
projected at 28.1% of GDP in 2013 against 27.6% of GDP in 2012. Moreover, it was
mentioned that the overall balance marks a surplus of USD 257 million and gross reserves
reached accordingly the equivalent of 7.4 months of imports.
In 2013 it was set as a goal that budget resources (excluding grants and oil) reach 372 Billion
UM and the volume of overall spending would be UM 463 billion2.
The base deficit (excluding oil and grants) is approximately 1% of GDP. The achievement of
this overall target set for 2013 the government worked on following:
reduce transfers and subsidies to institutions public for only represent 4.8% of non-
oil GDP against 9.1% in 2012;
control the costs of goods and services to 4.7% of non-oil GDP, and (iii) reduce
interest on the public debt at 2% of non-oil GDP for 2013.
2 Banque Centrale de Mauritanie Rapport 2013, P 15 ; www .bcm .mr
14
Table 2:
Macroeconomic data
2011
2012
2013
2014
2015(p)
GDP (million US S)
4,147
3,954
4,183
4.286
4.461
GDP per capita
1,170
1,090
1,126
1,126.70
1,145
Nominal GDP growth (in
4,4
3,9
-
6,4
5,6
% )
Real GDP growth (in %)
4.0
7.0
6.7
6.8
6.8
Inflation (in %)
5,7
4,9
4.3
3,5
4,3
Current public revenue (%
29.86
39.4
33.76
35.554
35.303
of GDP)
Public expenditure (% of
29.35
36.6
34.88
35.503
35.055
GDP)
Gross investment (% of
29.1
44.7
38.0
37.017
35.055
GDP)
Increase / decrease in
22.8
12.8
12.9
-
-
deposits (% of GDP)
The level of public debt (%
81.8
89.8
87.6
70,0
69,7
of GDP)
3
Source: BCM; as elaborated by IMF.ONS.CSLP
1.2. Energy Policy
The long term energy strategy of Mauritania relies on the following themes4:
Increase in production capacity from national resources: hydro and natural gas;
Development of interconnection with interconnected networks; by the rationalization
of production centres within the country, through consolidation and construction of
transmission infrastructure (HV/MV);
Large scale integration of renewable energy;
Implementation of sustainable solutions adapted for isolated communities
The strategy paper estimates the cost of the investment over € 720 mil ion to achieve the goal
targeted for 2030.
The Ministry of Energy adopted in 2013 a Master Plan setting the objectives for the
generation and transmission of electricity in 2030 (funded by the World Bank Group)
targeting areas with more than 500 households. The country confirmed and studied the
consequences of its policies on energy consumption in its "Master Plan for generation and
3 Cadre Stratégique pour la Lutte Contre la Pauvreté
4 CSLP 2011-2015
15
transmission of electric power in Mauritania between 2011 and 2030. The main themes of the
Master Plan are: expansion of the distribution network, strengthening the transmission and
diversification of sources of production.
An economic study to define the supply of electricity at lower economic costs assessed the
following options:
o Isolated network powered by diesel generators;
o Isolated network powered by diesel generators and a photovoltaic system without
batteries;
o Isolated network powered by diesel generators and a photovoltaic system with
batteries;
o Connection to the interconnected network;
o Realization of a spider centre.
The Sectorial Notes of the Ministry of Energy set-out the short term priorities of CSLP
(PRSP ) described in table 3.
Renewable Energy Promotion Strategy is being developed with the support of IRENA and
UNDP. The strategy's main objectives are to assess the technical and economic potential of
the different sources, define basic criteria (technology, typology of towns, etc.) and off-grid
and to propose an Action Plan to implement this strategy.
Table 3:
Short Term Energy Policy by 2016
Priority
Meaning
Adapting the legal and
- Revision of the Electricity Code
regulatory framework to
1
- Development of new specifications of delegates
new constraints of the
public Service
sector
Provide the department
with a clear vision on the
-Development of a Renewable Energy Promotion Strategy
2
Renewable Energy
-Development Of a multifunctional platform program
development and Rural
-Development Of a sectorial policy letter
Electrification
-Implementation of multifunctional platforms program
-Construction of 4 wind / power plants
-Construction of 6 PV / thermal hybrid plants (rural IPES)
- Construction of Hybrid- PV / Thermal plants
Fostering universal
-Construction of 100 multifunctional platforms
3
access to electricity
-Construction of a distribution network
-Construction of Kiffa thermal hybrid plant / Photovoltaic and LV
networks in areas of Kiffa and Guerou
-Construction of two hybrid plants in Nema and Adel Bagrou and LV
networks in this area
-Construction of a 225 kV line (21 km) between the dual station and the
Develop a transportation
OM VS post with the extension of the latter
4
system and develop
-Construction of a 225 kV line between M auritania (Nouakchott) and
interconnections with
Senegal (Tobène)
neighbouring countries
-Construction of a 225 kV line between Nouakchott and Nouadhibou and
16
Priority
Meaning
related posts
5
-Interconnections ,From the OM VS network, of Rosso-Boghé and
villages on the route
-Interconnections From the OM VS network: Boghé-Aleg; Sélibaby-
Kiffa;Kiffa Tintane 90 KV and 33 KV in surrounding communities and
associated items
-Construction Line HT Nouakchott - Bamako
-Construction of a central dual HFO / Gas 180 M W in Nouakchott
Increase production
-Construction of a wind power plant of 30 M W
5
capacity from local
-Construction of 30 M W PV plant of in Nouakchott
resources
-Construction of a wind power plant of 100 M W in Boulenouar
-Construction of Gouina Dam (OM VS)
-Execution of an energy drain Priority Programme of the Nouakchott
production facilities and distribution
-extension of distribution networks in Nouakchott (PEREN V)
-Implementation 4500 Public Solar lighting kits in Nouakchott ;Chami
6
and PK 55 from Nouadhibou
Improve client services
-Setting Up a National Driving Centre (CNC) in Nouakchott
-Development Of distribution networks of the chief towns of M oughataa
-Digitalisation of Centres and migration to a new integrated information
system
-Improved Anti-Fraud
Source: Master Plan
Table 4:
Key strategic commitments of the Mauritanian Energy Master Plan by 2030
Description of S trategic Commitment
1
-The development of production capacities primarily from national and regional resources (mainly hydro and gas)
PPP for large capacity (greater than 100 M W);
2
The deployment of the interconnected network to the interior and to the sub-regional areas (Maghreb and West
Africa) and the production sites grouping in 4-5 centers from 5 to 6 M W with fuel (ideally hybridized with
6
renewables) via interlinking M V 33kV of all centers of the perimeter SOM ELEC and semi-urban areas of large
size (including today identified the Aleg-Boutilimit axes Aleg-M aghta Lahjar M aghta Lahjar-Kiffa-Kiffa
Sélibaby, Kiffa- Guerrou, Aioun-Tintane Nema-Timbédra, etc.);
3
For rural and semi-urban areas: (i) the completion of distribution networks and their delegation to private
operators for all localities of over 2,500 inhabitants outside of the main towns of M oughataa (including
promoting the interconnection of electricity networks where deposits of economies of scale are identified),
(ii) decentralized electrification by mini-grids for all other locations between 1000 and 2500 inhabitants, (iii)
priority Promotion of renewable energy and alternative appropriate technologies for communities with
between 500 and 1000 inhabitants and in high-cost areas;
4
The large-scale integration of renewable energies, especially connected to the network, to achieve a more
balanced national energy mix and the implementation of a national energy efficiency program (energy
efficiency and rational use energy)
Source: Master Plan
5 Organisation pour la Mise en Valeur du Fleuve Sénégal (the Senegal River Basin Development
Organization)
6 Société Mauritanienne d’Electricité
17
1.3. Institutional structure and responsibilities for energy policy
The role of the Ministry of Energy is to define and implement: the
National Energy Policies
and the
Development of Sectorial Strategy and follow the developments in the energy field..
The Government promotes: investments, competition based on transparency and non-
discrimination, connect Mauritanian's energy system with systems of other countries (taking
into account economic trends and energy needs) and the participation of the private sector in
the energy sector. The key stakeholders in Mauritania’s energy sector are:
Multisector Regulatory Authority (MRA)
The law on the Multisector Regulatory Authority (MRA) was adopted on 25 January 2001.
The Regulatory Authority is supervised by a National Council for Control and operational
directorates under the authority of the President of the Council.
The Council is composed of five (5) members appointed by decisions in accordance with the
provisions of Article 28 of the Law 2001-18 of 25 January 2001:
- Three (3) members are appointed by decision of the President of the Republic
- One (1) member shall be appointed by the President of the Senate;
- One (1) member shall be appointed by the President of the National Assembly.
The powers of the Authority, previously limited to the telecommunications sector, the water
sector and the electricity and created an independent regulatory body. At the same time, the
Code of Electricity, adopted in 2001, liberalized production, transmission, distribution and
sale of electricity under the control of the regulatory authority over all the Mauritanian
territory7.
Ministry of Petroleum Energy and Mines (Directorate of Electricity)
The directorate of electricity and energy management within the department develops implements and
monitors the implementation of policies, strategies and state programs in the Electricity sector. It is
responsible for the development of renewable energy. After the merger with the National Energy
Management Unit (NEMU), founded in 2002, is now directly responsible for the development of a
comprehensive energy efficiency policy for development, maintenance of energy accounting and
energy balancing.
SOMELEC (Mauritanian Company for Electricity)
SOMELEC was created from the split of the former SONELEC (National Company for Water and
Electricity) in 2001. It ensures the generation, transmission, distribution, purchase and sale of
electricity in urban areas. It currently manages thirty urban centers. It is governed by a program
contract binding it to the state, which forced it to improve its performance in return for a
compensation of its operating deficit in the absence of equivalent tariff adjustment. The Company is
100 per cent owned by the State, the General Director is nominated by the President of the Republic;
the board consists of deputy General Director, seven directors and fourteen advisors.
7 Electricity Code, Art.
18
Agency of universal access to services (APAUS)
Agency of universal access to services (APAUS) was established in 2001 to promote
universal access to regulated services (telecommunications, electricity, water). It ensures the
project management of most of the rural and semi-urban projects in the areas of water and
energy. The APAUS was otherwise has the task of monitoring the impact of the National
Strategy for Universal Access in 2005.
The Universal Access Services Agency is an independent body with legal personality and
financial autonomy (Ordinance No. 2001-06 of 27 June 2001 that created it).
The accounting legal system, financial, tax and customs of the Agency are specified by the
provisions of Ordinance No. 2001- 06 of 27 June 2001 on its creation.
The agency is subject to a general system of private law in accordance with Decree No. 2002-
06 of 7 February 2002 setting out its organization and functioning.
ADER
The Agency for Development of Rural Electrification ADER , created in 15 February 2000,
is a Mauritanian private law agency governed by the law of 64 -098 of 9 June 1964 and state-
approved by the Decree No. 2001-065 of 18 of June 2001, issued by the Council of Ministers.
ADER mission is to coordinate and facilitate the process of decentralization of the rural area
electrification.
An agreement was signed between the ADER and the government on 11 May 2000, pursuant
to this agreement the programming and implementation of the National Rural Electrification
Program are entrusted to the ADER. The areas of intervention of the Agency are as follows:
- The programming of rural electrification investments
- The delegated project of rural electrification projects
- Managing a Decentralized Electrification Fund FERD
- Management of rural electrification equipment;
- Identifying and supporting the emergence of private operators that can support the
management and maintenance of decentralized electrification equipment;
- The experimentation of technical courses for electrification; and
- The training of actors of rural electrification.
For this ADER has acquired the human resources to become a structure capable of
implementing and managing rural electrification equipment. ADER considers that it is the
only national structure with the accumulation of experience and expertise in the management
of rural electrification8.
SPEG
To compensate for the large deficit into electrical energy and reduce the cost of electricity
currently produced by individual power plants, the state, in July 2012, agreed with the main
mining operators (SNIM and Kinross Gold) and the public electricity operator SOMELEC, to
8 Ader.mr
19
create the Society of electricity production from Gas - SPEG, commissioned to build or
promote an integrated system of production and transport of electricity generated from
domestic resources gas.
SPEG (Société de Production d’Electricité à partir du Gaz) is a special purpose vehicle
incorporated for the purpose of power generation, transmission and sales of power using
Banda gas. SPEG’s shareholders are SOMELEC (40%); KG Power, subsidiary of Kinross, an
international gold mining company (34%); and SNIM, the national iron ore mining company
(26%)9. Following the withdrawal of Tullow Oil, the SPEG was liquidated in 2015.
Private Operators
Since 2007, local private operators recruited by the MRA tender manage 19 rural centers
(2014) and operating loss is compensated by the state, under delegation contracts Public
Service Electricity.
SNIM (National Company for Industry and Mining)
Miferma (Mines de Fer de Mauritanie) was created in 1952 to exploit iron ore deposits in the
Kedia d'Idjil area of northern Mauritania. A mining centre was constructed at Zouerate
together with port facilities at Nouadhibou on the Atlantic coast, both with power plants and
linked by a 700km railway.
Nationalisation of the Miferma consortium in 1974–75 created SNIM (Société Nationale
Industrielle et Minière). The Mauritanian government now owns 78% of SNIM and Arab
financial and mining organizations own the balance. Production rapidly grew to 12–13Mt/y, a
level which has generally been maintained by serial upgrading of the facilities.
SNIM always ensures the electrical public services to the city of Zouerate and the electricity
production for the needs of its industrial facilities in Nouadhibou, being served in part by a
medium- voltage line from the city of F'derick.
Independent Producers of Electricity:
Mining Companies (SNIM; Kinross Taziazt, MCM): Some of the Mining companies conduct
electrification in the villages which they depend. They also reflect on the possibility of
reducing their operating costs through increased use of renewable energy to meet their needs
outside the network.
Other key stake holders:
A number of NGOs, including international ones, are involved in the sector and lead to both
awareness and demonstration projects for the possible use of these resources, especially in
rural areas.
9http://www-
wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/05/13/000442464_2014051309
2605/Rendered/PDF/830250PAD0P107010Box385211B00OUO090.pdf
20
1.4. Energy industry regulation
Law No 2001-18 on the multi-sectorial regulator. The law created an independent multi-
sectorial regulatory authority named “Autorité de Régulation”. The Regulatory Authority is
charged with the regulation of the activities performed in the territory of Mauritania in water,
electricity, telecommunications, mail among other sectors.
Ordinance No. 2001-06 establishing the Promotion Agency of Universal Access to
Services
The objective of this Agency is to fulfil the directives of the Strategy of Poverty Reduction
adopted in the Strategic Framework for the Fight against Poverty (CSLP). The Law confers the
task of implementing a progressive policy of generalization of essential services decisive for
the economic development and social
well-being, such as water, electricity and
telecommunications.
Provisions in favor of developing public-private partnerships (PPP) for providing public
services are found in the context of the infrastructure sector reform10.
Law No 2001-19: The electricity code provides for:
o The liberalization of the electricity sector;
o The harmonious development of electricity supply under the legislation;
o The creation of economic conditions for the return on investments in the power sector;
o The development of the consumption of electrical energy for all sections of the
population and industry;
o The conditions for a just and fair competition and the rights of users and operators.
The order 05-2002 of 28 March 2002 defining the general organization of the
downstream oil sector;
This Code governs the activities of the production, transmission, distribution, sale and purchase
for resale of electric energy for the territory of the Republic Islamic of Mauritania.
Are excluded from the application of this Code field:
o Power plants with an installed capacity below 30 Kilovolt ampere (kVA);
o The central military installations.
The Regulatory Authority, in accordance with Law No. 2001-18 on the regulation
multispectral, ensures the application of this Code and in particular the implementation of
allocation
procedures
and
implementation
of
licensing
and
authorization
conditions
objective, transparent and non-discriminatory.
1.5. Energy prices
Despite increasing diversification, the Mauritanian energy system remains heavily oil
dependent either on or off the network. Moreover, the country's geography and population and
10 http://www.acces.mr/index.php?option=com_content&view=article&id=41&Itemid=20&lang=fr
21
economy centers do not facilitate the development of the national power market. All this
affects the production costs of electricity and tariffs.
1.6.
Power Prices
Electricity tariffs are set by decree. The tariffs applied by SOMELEC can be distinguished as
on and off-grid in moughatas (Head locations); and off-grid tariffs proposed by the companies of
service.
Table 5 Tariffs SOMELEC
Tarifs en vigueur
Voltage
Category
S lice
Énergy Price
Monthly Fixed
(€/kWh)
premium (€)
D1
0,095
8,30
Domestic
D2
0,145
36,23
D3
0,145
110,71
public lighting
0,14
105,82
Low Voltage (LV)
1
0,145
8,30
Industries, craft
2
0,14
36,23
and Commerce
3
0,145
110,71
I
0,14
36,23
Administration
II
0,145
181,19
1 tariff provision
0,09
10,24
Medium Voltage(MV)
0,06
2 tariff provision
184,58
0,06
S ource: SOM ELEC (1
€=380 MRO)
Off-grid tariffs for service companies and maximum tariffs are set by Decree of the MPEM.
The prices are applied by service companies according to each service area, following the
rates proposed by the MRA and the MPEM.. The Multisectoral Regulatory Authority (MRA)
evaluates quarterly the subsidy to each Department. This grant is punctured on the Fund
Universal Access (FAUS) managed by the APAUS. Thus, the State through the ARM and via
APAUS (FAUS) reverses operating subsidies necessary to ensure the economic sustainability
of delegates.
22
Table 6 Grid existing tariff and proposed for on and off-network
Off-grid network (suppliers)
On and off-grid for SOMELEC
The Tariff
Monthly
S ocial Tarriff
Medium
Higher Tarif
proposed
Tariff
< 25
> 120
Tariff
kWh/month
Between 25
kWh/month
kWh and 120
kWh
Fixed
Énergy Price
Fixed
Fixed
Fixed
premium:
premium
premium:
premium :
Social : 36,01
329 UM (0,82
UM /kWh
600 UM (1,5
1 625 UM
7 513 UM
€)
(0,095 €)
€)
(4,07 €)
(18,81 €)
Énergy Price:
Higher : 59
Énergy Price
Énergy Price
Énergy Price
UM /kWh
- <2 kVA :
51 UM /kWh
81 UM /kWh
90 UM /kWh
(0.145 €)
30,74
(0,13 €)
(0,20 €)
(0,23 €)
UM /kWh
M edium
(0,077 €)
Voltage : 37
UM /kWh
- > 2 kVA :
(0.09 €)
59.03
UM /kWh
(0,148 €)
S ource : Study Tariff SOM ELEC;
"Joint Order 2418, M HE and M CI fixing the maximum sales price of electricity in the communities that are the
subject of the delegation of the public electricity service June 23, 2008";
1 Ouguiya = 0.00250428 Euro 1 = 0.00343770 USD Ouguiya
Rates, whether on or off-grid are subsidized. Graph below shows cost of production of kWh
from 2010 with projections till 2018.
Table 7 – Cost of production
Coût moyen de Production (€/kWh)
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
2010
2011
2012
2013
2014
2015
2016
2017
2018
S ource: APAUS
23
Oil Prices
The supply of liquid petroleum products and gas for the country is provided by international
suppliers selected according to the government’ cals, every two years. The prices of the
energy products are two folds:
o Rates given for products distributed to the public.
o Free rates for large consumers and fishing;
Table 8 Energetic share on state budget, 2002-2012
Source:
11
Office of National de Statistics(ON S)
The oil bill remains high; it is estimated at MRO 204.5 billion, marking an increase of 39% compared
to 2011. Excluding mining companies, imports of petroleum products totalled MRO 123.8 billion or
60% the oil bill in 2012, registering a slight decrease from the 2011 level of 62.9%. Regarding the
mining companies, their spending on petroleum products increased 48% from $ 54.7 billion in 2011
MRO to MRO 80.7 billion in 2012.
In the past, operators suffered significant loss of earnings due to the lack of coverage of their costs
through tariffs in administered prices. These shortfalls exceeded at times the bar ten billion UM. In
recent years, the Ministry has launched a reimbursement program for operators of their shortfalls on
one hand, and by a gradual adjustment of tariffs to cover the economic costs. Today:
- Most of the shortfall was reimbursed to the operators;
- Tariffs cover the economic costs allowing the state to save significant amounts were allocated
annually to the liquid petroleum products of price subsidy.
11 Office National de Statistique. www.ons.mr
24
ENERGY SUPPLY AND DEMAND
1.7. Recent development and the structure; outlook and its structure
Mauritania has offshore oil reserves estimated at 1 billion barrels. As in most African
countries, traditional fuels are an important source of energy. However, unlike most other
Sahel countries, Mauritania also relies heavily on petroleum products which supply 95% of
the country’s commercial energy needs. The main petroleum fuel product is LPG (liquefied
petroleum gas) and together with Senegal and Cape Verde, these countries represent 90% of
the regional gas market. Diesel oil represents 25% of petroleum use in Mauritania.
12
Total primary energy supply was in 2008 estimate at 1,495 ktoe, having 59% biomass and
41% of Petroleum products.
The total primary energy production in 2012 was estimated at 0.015 Quadrillion Btu and the
total primaty energy consumption in the same year was estimated at 0.038 Quadrillion Btu.
Production
Apart from hydropower, the photovoltaic solar plant of 15MW in 2013and the wind power
plant of 30 MW which entered into production in 2015; the production of SOMELEC comes
from thermal Diesel (fuel oil and diesel).
The most important power plants in the country are situated in Nouakchott (180 MW started
production in late 2015). those of Arafat Nouackcott, the modular power plant of Wharf 36 MW
and that of Nouadhibou 22 MW since 2012..
This installed power capacity generated 740 Gwh in 2014.
The same year, SOMELEC imported 182GWh from hydroelectric dams of Manantali and
Felou owned by the OMVS, 173 130 MWh.
Major mining companies have a significant production capacity to cover their own needs
from electricity amounting to 560 GWh.
12http://www.reegle.info/countries/mauritania-energy-profile/MR#sources
25
Figure 2 Installed Capacity
Somelec /
Delegated
Service
Contract ;
202,5 MW
Mining
companies
; 206,5 MW
Source :MPEM
Figure 3 Gross domestic consumption of energy, 1980-2010
26
Consumption
The annual primary energy consumption in the country was estimated at 4.8 million barrels of
oil equivalent in 2010 (EIA). The annual consumption per capita is 0.3 toe, and 0.17 toe
without traditional biomass. Mauritania's energy mix is made up of approximately 67%
biomass (wood and charcoal), followed by petroleum products. In other words, petroleum
products represent the vast majority of commercial energy used in the country. The power
consumption increases by more than 10% per year, whilst less than 5% of the population in
rural area has access to electricity13.
Table 9: Gross domestic consumption of oil product, 2000-2011
Source:
14
Office of National de Statisque (ON S)
The levels of access to energy services are limited in the country. Significant efforts are
devoted to rural electrification, but the vast majority of the population is still dependent on
non-commercial resources for their needs (64% of the primary energy consumption provided
by traditional biomass). The resources used to produce electricity, the main imported today.
In spite of the national crude oil production is exported, all petroleum products are imported
in the absence of local refining capacity. The local gas exploitation will reduce the country's
dependence, but retrieval time could have important consequences on the economy15.
13 RRA
14 Office National de Statistique. www.ons.mr
15 RRA
27
Table 10 Forecast for Demand Balance (in MW):
Source: MPEM
1.8. Electricity System, Production, Transmission and Distribution
Generation: The main resource used today for electricity production is heavy fuel oil, which
represents 75% of installed capacity (just over 350 MW in 2013) of power plants. Excluding
demand projections in terms of electrical capacity, an increase in demand is predicted
(network and mining) from 220 MW in 2013 to nearly 1400 MW in 2025, in this scenario
"high" is a multiplication of the installed capacity by 6. Note that 75% of this capacity is
linked to the demand of the mining sector (1,050 MW in 2025)*. (See the Future
Development Section)
Figure 4: installed electrical capacity (MW) (Somelec, Delegated Service, Private
16
Source :
MPEM
The plans are to have, in 2020, a total of 376 MW of power generation capacity comprised
from 89.25 MW of hydropower, 241.75 MW of heavy fuel oil and mixed power and
16 Master Plan Generation and Transmission Electric Energy in Mauritania between 2011 and 2030; intec;
November 2012.
28
58.3 MW of solar and wind. There is around 36% of total renewable capacity connected to
the network. Between 2020 and 2030, a number of hydro power projects are to be built,
totaling 217.25 MW of capacity. The oldest plants to be decommissioned are HFO and gas
combined cycle power plants in service, totaling 354 MW of capacity without new additions
provided on the renewable network outside of hydraulics. This would bring the total capacity
to an overall of 41% renewables (34% hydro) and 59% of fossil fuels.
Table 11 Energy production according to source (GWHh)
Graphique: Production énergétique en GWh/an par type de source
d'énergie
2000
1500
Gaz
Solaire PV
Eolien
1000
Hydro
Thermique
500
0
2011
2012
2013
2014
2015
2016
S ource : APAUS
29
Figure 5 Available sources of power status
Last
Available
Year of
year
Name
Type of plant
power
commissioning
provided
M anantali
30
2002
2030
Félou
18
2013
2030
Gouina
35
2016
2030
Gourbassi
Hydroelectric
6.25
2017
2030
(available power
Bouréya
for Mauritania)
40.25
2021
2030
Koukoutamba
70.25
2023
2030
Badoumbé
17.5
2025
2030
Total Hydro
217.25
Arafat 1
39
2014
2023
Arafat 2
8.75
2011
2020
Heavy Fuel
Wharf
36
2011
2014
(HFO)
Nouadhibou
22
2013
2030
Total Heavy Fuel
105.75
M ixte HFO/Gaz
Duale 1
(114)
120
2015
2030
Duale 2
54
2018
2030
Total Mixte
174
Combined
Total Gaz CCG
Cycle Gaz
180
Wind Nouakchott
Wind
30
2014
2030
Solar Nouakchott
15
2013
2030
Solar 2
Photovoltaic
Nouakchott
30
2015
2030
Total Renewable
75
Source: Master Plan Generation and Transmission Electric Energy in Mauritania
between 2011 and 2030; intec; November 2012.
30
Transport and distribution
The Mauritanian power transmission grid is built around the main demand centers. A 225 kV
line along the coast south to Rosso then along the border of the Senegal side and join the
OMVS network from Dagana. Transmission along the border is provided by a 33 kV line
(green SOMELEC) Rosso Boghé up and 90kV (blue OMVS) Boghé to Matam.
Figure 6 Network Transmission Mauritania 2013-2018
Source:
Minister of Petroleum, Energy and Mines
Sources : MPEM
The transmission network is expected to expand. First, two draft lines 225 kV (red) are
additionally planned under the operation of Banda Gas field, one extending the transmission
network to Nouadhibou in the north (as well as areas mining inside the country), the other
going to Senegal to allow the export to Senegal. Network extensions 90 kV and 33 kV are
also planned to the south of the country to increase the proportion of population served.
31
Electricity access rates are quite low in the country this is partly due to the difficulty of
extending the network and the dispersed nature of demand, not facilitating
interconnection. Overall, it is estimated that the number of households connected to the
network increased from 22% in 2000 to 24% in 2004 to 34% in 2013.
32
2. MARKET STRUCTURE BY SUB-SECTORS
2.1. Oil
Apart from mineral resources, Mauritania has potential in oil and gas reserves. The Western
African Resource Watch estimated oil reserves of the country at 1 billion barrels, which
would place it just behind Nigeria.
Oil fields, exclusively for export, as Chinguetti saw output fall by 70,000 bbl / d in 2006 to
6 143bbl / d in 2013. This production uncertainty may be partially related to the small number
of known resources. Indeed, to this day the country is still under-explored, there are 1.7 wells
per 10 000 km2 in the license areas in comparison to an average of 50 wells.
Table 12 Offshore Discoveries17
Fields Nature of hydrocarbons Estimated reserves Position/Depth Operators
Thiof Oil 230 M barrels 100 Km/ 1400m OPEN18
Thévet Oil 30/40 M barrels 70 Km /600 m OPEN
Banda Gas/Oil 2 TCF 55 Km/ 214 m OP EN
Pelican Gas 1.1 TcF 160 Km /1700 m DANA
Lebeida Oil 30/50 M barrels 95 Km /1265 OPEN
The oil and gas resources potential are still largely unexplored in Mauritania. However, since
2001, a number of new oil deposits were discovered and production started in the fields, such
as the
Chinguetti field, at a water depth of 800m, discovered in 2001, which has, according to
its operators, a current production of around 8,000 barrels per day; the
Banda deposit which is
estimated to contain approximately 1.2 TCF of natural gas with an oil ring; the
Tiof deposit
which should contain 120 million barrels of oil with associated gas, having been discovered
in 2003; the
Tevet and Pelican (southern part of block 7) deposits are still in the evaluation
stage, the
Cormorant drilling (2010) revealed the existence of gas beyond the previously
defined limits; and, finally, in the Onshore drilling "Tanit-1" produced by TOTAL in 2010,
extremely encouraging results have been achieved on the hydrocarbon potential in the Basin
Taoudeni19.
17 Study on the integration of the oil and gas sector to the national economy /
Bureau d’etude Pétrostratégie 2008;P30
18 These discoveries became a State patrimony; thus they are open for investors .
19 Guide de l’investisseur minier – Octobre 2013
33
20
Table 13 Key Operators in the field of exploration and production
Source: Ministry of Energy
2.2. Gas
Banda Gas Field
The Banda Gas field, whose reserves are estimated at 1.2 Tcf, should go into production by
2017. The operating early depends on the finalization of the gas utilization negotiations
initiated under the SPEG (Production Company of Electricity from Gas). Indeed, the gas
reserves in the Banda field do not justify the construction of gas liquefaction facilities in order
to export it to a global level or to build a pipeline in order to connect to the network WAGP
(Western African Gas Pipeline) or to export to Morocco.
The Banda gas field is located approximately 55 km offshore of Nouakchott. The Banda field
shareholders are Tullow (67%), Petronas (15%), Kufpec (13%) and Premier Oil (5%). Tullow
prepared a field development plan which provides for production of up to 70 mscfd per day
of gas over 20 years. The Banda Gas Project consists of two sub-sea wells tied back to an
onshore gas processing plant via a subsea production manifold and a 10-inch sub-sea
pipeline.
20 MPEM 2014
34
Project cost is estimated to be US$650 million. The gas field was declared commercial in
September 2012 and the environmental impact assessment (EIA) and front end engineering
and design (FEED) were completed in the first half of 2013. Tullow Oil eventually withdrew in
December 2014, for lack of financing capacity given the situation of the oil market. A new investment
model is being structured.
The decision was taken to use the gas for electricity generation to be used for domestic
consumption by mining companies (part of the capital of the SPEG), whose surplus would be
exported to the space OMVS.
The Banda Gas-To-Power Project
The Banda Gas-to-Power Project consists of the following components:
a) the upstream Banda offshore gas field production, transmission and processing
infrastructure (the Banda Gas Project);
b) power generation from Banda gas in Mauritania (the SPEG Power Project); and
c) existing and new power transmission lines to evacuate power to the delivery points.
SPEG (Société de Production d’Electricité à partir du Gaz) is a special purpose
vehicle incorporated for the purpose of power generation, transmission and sales of
power using Banda gas. SPEG’s shareholders are SOMELEC (40%); KG Power,
subsidiary of Kinross, an International gold mining company (34%); and SNIM, the
national iron ore mining company (26%).
The SPEG Power Project: downstream power generation
The SPEG Power Project is designed to be implemented in two phases to match the evolution
of electricity demand in Mauritania – and also in the region – and to optimize capital
allocation.
The proposed WBG intervention is focused on the first phase of the SPEG Power Project
which consists on the construction of a 300 MW power plant located in the north of
Nouakchott that will operate using Banda gas. The SPEG plant includes 180 MW dual fuel
engines (HFO, natural gas) to be commissioned by March 2015, and 120 MW combined
cycle gas turbines (CCGT) to be commissioned by mid-2016. The 300 MW SPEG plant will
sell all its generation to SOMELEC, who will, in turn:
a) sell power to Kinross, SNIM and its regular customers in Mauritania; and
b) export power to Senegal (SENELEC) and Mali (EDM).
Gas from the Banda offshore gas field developed by private developer Tullow will be sold to
SPEG which will transform the gas through a 300 MW power plant. The SPEG electricity
35
wil be sold to Mauritania’s national utility, SOMELEC, which in turn wil sel power to
customers in Mauritania and export power to Senegal and Mali21 .
Figure 7 – Mauritania Banda Gas to Power Project
Source: Ministry of Petroleum, Energy and Mines
21 THE BANDA GAS TO POWER PROJECT Document of The World Bank Group Report No: 83025 - MR
36
2.3. Electricity Power (See Section 2.2: Power System, Production,
Transmission and Distribution)
2.4. Renewable Energy Sources
Mauritania is at a critical point in its energy development. A number of options have been
taken to ensure electricity supply to price content through the operation of the Banda gas
field. Nevertheless, the country benefits from important renewable resources that can
contribute to the development of a substantive, economic and competitive energy supply.
The country already has the Senegal River water resources through the OMVS22. Moreover,
wind and solar resources are highly significant, while traditional biomass still meets the
majority of the primary energy consumption.
Hydro potential
Mauritania has limited water resources. The main resources are related to the Senegal River.
Mauritania is one of the OMVS and participates in projects within this framework.
Table 14 – Evolution of installed hydro potential
Evolution de la puissance hydroélectrique
(OMVS) installée disponible pour la Mauritanie
(MW)
250
200
150
100
50
0
2012
2013
2016
2017
2021
2023
2025
S ource : APAUS
The two major projects currently in service are the Manantali dam, for which Mauritania has
30 MW of the 200 MW capacities available, and the Felou dam, for which the country has an
available capacity of 18 MW. Mauritania should benefit nearly 217 MW over a little less than
690 MW of capacity planned for all projects OMVS planned. Apart from Manantali and
Felou, the dams of Gouina and Gourbassi are those that should be achieved in the short term,
22 Organisation pour la Mise en Valeur du Fleuve Sénégal (the Senegal River Basin Development
Organization)
37
(by 2020). These projects are coupled to electrical interconnection projects for delivering
energy produced on participating countries.
Map of hydropower stations (source: OMVS )
Outside of large projects planned as part of the OMVS, Mauritania has limited water
resources in the south of the country that could actually be exploited. These resources are
currently being investigated, but could result in a joint operation for irrigation and power
generation. It is required to measure and promote the use of these resources in the country
through the realization of studies and measurement campaigns of technical and economic
potential for the construction of retention ponds / dams.
Solar
The sunshine in Mauritania is significant. There is radiation of about 4.9 kWh / m² to 6.5
kWh / m² per day on a horizontal surface (corresponding to 1800 to 2400 kWh / m² / year),
with three different sun exposure regions in the country, as follows:
i.
North: exposed to a desert climate, dry and hot;
ii.
South: subject to a more humid climate with lower solar exposure
iii.
Coastal: zones exposed to lower temperatures but more moisture.
As illustrated in the map below, the radiation range varies between 1900 and 2000 kWh / m2
/ year for a minimum and 2300 and 2400 kWh / m2 / year for a maximum. The map shows
different areas of sunshine exposure, with a number of "hot spots" (with a higher radiation)
potential in coastal areas23.
Figure 8 – Solar Map of Mauritania
23 RRA Renewable Readiness Assessment Stratégie Nationale de Développement des Energies Renouvelables
38
S ource : PVGIS 2008 – EU, JRC – Ecole des M ines de Paris/Armines/CNRS
A number of measurements for different areas of potential projects can provide an estimative
of productivity for photovoltaic technologies. These measures, on an annual basis, are
estimated from direct and indirect radiation.
Direct and indirect radiation in Mauritania are significant. Current data is mainly from
satellite measurements and need to be compared to ground radiation measurement in order to
be better quantified. A number of pilot projects and measures undertaken in the 1990s could
be used to refine the data, but the data is often not available or usable. In any event, different
orders of magnitude are used to obtain an estimate of the potential available. The use of solar
energy is explored along Mauritania. So far, the facilities are almost exclusively photovoltaic.
Other applications such as power and solar hot water solar concentration are possible given
the nature of the radiation, but remain as options to be considered. The on-site technologies
are numerous but mainly intended for applications in a reasonable size (individual,
collective). A panel frames assembly unit is also available on site with a limited production
capacity.
39
Off-grid
Solar energy, until recently, was mostly been used in a decentralized framework. The
Regional Solar Program (PRS) was one of the first large-scale solar programs implemented in
the country. It mainly covered the use of solar photovoltaic systems for Supply Drinking
Water (AEP) and was extended to the distribution of a number of community systems
(lighting kits and cold). Approximately 210 water systems and community were implemented
in both phases of the PRS 1 (1990-1998) and PRS 2 (2001-2007). Moreover, it is interesting
to note that approximately 30% of the systems installed in the PRS 1 had to be rehabilitated at
the PRS 2, stressing the need to properly design and maintain the units in place.
Agency participation in off-grip enterprises
ADER - Agency Development of Rural-Electrification, a Mauritanian association acting on
behalf of the State, for its part, installed over 12,000 solar kits in as many homes throughout
the country. The total capacity installed reached 309 kWc. ADER has since integrated the
development of mini networks in their program.
The APAUS - Agency Promotion Universal Access to base-Services is a multi-sectorial
public institution and principal actor in the rural areas of hydraulics and energy. It is also
active in the field of solutions based on solar PV (solar kits and pumping hybridization fired
power diesel used for some mini-networks and multifunctional solar platforms PTFM).
Size Projects Connected or Not connected to the network:
Large-scale photovoltaic projects are part of the country's goals. A 15 MW PV project was
inaugurated in April 2013 in Nouakchott and primarily funded by a loan from Abu Dhabi. In
addition, many projects are under study or in progress.
Several projects Hybrid Solar-Diesel Production coupled with the construction of 33 kV
networks on not yet electrified zones are planned. The first project to be implemented is Kiffa
plant that comprises 1.3 MW of solar and 4 MW of thermal energy. Others, alike, are
expected for the coming years and will be implemented as the financing becomes available.
For instance, the project Echargui Aftout, with a 2.6 MW capacity, including 200 km of 33
kV line, may be one of the next to be started, given that funding to the tune of $ 30.4 million
have already been raised from the Islamic Development Bank (IDB) and the OPEC Fund for
International Development (OFID)
Finally, projects to reduce fuel consumption not disconnected to the network industry are
being examined. The first draft Zouerate 3 MW is in progress on behalf of SNIM and is set to
open shortly.
Industry / companies / suppliers:
The recent development of the solar market, previously content to off-grid applications, has
not helped to foster the emergence of a large number of businesses and skills in this area.
Note that a panel mount unit “ATERSA Mauritania” with limited activity assembling frames
and junction boxes already exists. At the moment, the market is not significant enough to
justify the existence of a complete chain assembly. In addition, a number of private
companies with experience on the delegation of energy services exist and might be able to
40
train to be able to ensure the upkeep, maintenance and potentially increase the number of
solar power plants.
Mauritania high solar incidence as a resource can be considered competitive from an
economic point of view with the fossil fuels currently being used (diesel HFO). The
competitiveness of the solutions depends on the actual costs of providing energy on site.
Unfortunately, the cost comparison is not simple, because of the difficulties in measuring the
real costs of energy supply. In order to compare the actual costs of provision, it would be
particularly necessary to calculate all the development funding obtained for each
infrastructure.
The rural electrification projects based on solar energy are numerous in Mauritania, both for
the electrification of villages through mini grids hybrid solar-diesel powered, installing solar
platforms (PTFM) or for the distribution of solar kits. One still finds a number of recurrent
issues that cover:
o Sustainability of systems: Once the projects implemented, economic viability depends
on their funding capacity. Out today, the applicable tariffs only help fund the
operation and a small part of the renewal remains primarily the responsibility of the
State, the details have not yet been defined;
o maintenance
of
installed
systems
during
and
after
programs;
managing the pricing and funds collected from populations and differences in pricing
between localities connected to the network belonging to communities managed by
SOMELEC, managed by delegated services and solar platforms;
o pass required between off-grid communities and those that can potentially become
connected but are not covered by SOMELEC. Indeed, common previously electrified
by independent mini-network that could potentially be connected to the network today
have no access to a lack of resources / forecasting SOMELEC which can meet
network recovery requests;
o harmonizing tariffs between the localities served by SOMELEC and those served by
the delegates of public service.
There is a particularly favorable context for the implementation of solar projects of
importance to reduce the fuel consumption of network industries located outside. The first
test project SNIM will help to better evaluate the savings. Similarly, mini-grids hybridization
projects will reduce energy bills. Nevertheless:
o it is difficult to prove the savings / feasible because of the existing tariff system and
the lack of information about the real electricity generation costs. Outside network,
the measurement is easier;
o there is a need to better control the questions of hybridization / coupling with solar
technologies to balance production and consumption either on or off the network;
o Project monitoring and evaluation of the impact of existing solar power plants would
better understand the conditions of implementation, productivity and the need to
extend this type of application in the country.
41
Wind
Mauritania has a significant potential of wind resources. The most promising resources, as
seen in the graph below, are concentrated in the western area of the country. These data are
mainly interpreted from satellite measurements that are available online and, in order to
accurately provide the data, must be confirmed by specific measurement campaigns in the
country.
Figure 9 Wind Map of Mauritania
Source: SWERA NOAA24
The map indicates a wind speed between 8.3 and 8.7 m / s on the coastal areas in the
northwest, such as Nouadhibou, and small portions of territory up north in the coast line with
wind speeds even higher (9 m / s). The values fall gradually moving down south of the
country but remain above 7 m / s along the coast. These values are quite high in absolute
terms and represent an interesting potential in coastal areas. Wind regimes, however, are
affected by topography and site’s specific conditions, making assessments on the subject
more difficult.
24 http://en.openei.org/apps/SWERA/?active=Mauritania
42
Background, early usage and barriers
The use of wind energy is explored since the late 1980s in Mauritania. The main technologies
used covered the use of the mechanical energy of the wind to the pumping and electricity
generation on and off network
A major demonstration and testing program was also conducted in Mauritania in
collaboration with the Institute of Technology of the Canaries (ITC) between the late 1990s
and early 2000. This has included the development of a wind atlas of the country, a
demonstration platform for renewable energy and maintenance at the University of
Nouakchott and commissioning of 4 water desalination units (20-40 m3 / day) in the National
Park Banc d'Arguin. There was a small capitalization of the test program and wind
demonstration in Mauritania. However, the partnership fostered the country’s interest towards
the technology, resulting in the installation of several projects and off-grid.
In terms of wind power plants, a farm of 4.4 MW is in operation since 2012 in Nouadhibou
serving the needs of SNIM. It consists of 16 Vergnet turbines mounted on retractable masts.
In addition, a new 30 MW is being finalized in Nouakchott and will be integrated to
SOMELEC’s network. It should be noticed that the result of the cal for tenders for wind
farms in Nouakchott surprised the national players for the price per kWh content despite low
wind speeds at the North.
The size of the Mauritanian market does not justify the construction of local manufacturing
units, but a number of elements can be produced on site. The main technical barriers to
integration of wind power in Mauritania include:
o
The lack of companies with experience in the field, mainly for pumping since Deyloul
closed;
o
difficult network integration: today, the only plant in operation, Nouadhibou, injects a
small portion of potential output in the network SNIM. The output is only used in
advanced production units with fuel. It should be noticed that most units are not intended
to manage the production of fuel around wind capacity;
o
lack of lift capacity: there is no crane Mauritania able to install the mats and modern
wind turbines that can reach more than 100m high and several dozen tons.
o
No comprehensive measurement campaign was conducted in the country known to the
consultant. By cons, a number of measurements were made from specific measurement
masts whether the intention to carry out a project pre-feasibility study or as part of
scientific research in the past. The most accurate data obtained from measurement masts
for feasibility studies have been collected for relatively short periods of one month. Cells,
from scientific facilities, seem to date difficult to use when they are still available and in
any case must be validated by further studies. It would be useful to exploit the long data
measuring stations installed and to find the data related to the Wind Energy Atlas
prepared in 2000.
Biomass
The primary energy consumption of Mauritania (67%) is provided by traditional biomass
(wood and charcoal). Despite its desert climate, a significant part of the energy consumption
of the country is currently provided by biomass.
43
Figure 10 Consumption of wood-fire and charcoal (thousand tons
400
350
300
250
200
Bois
Charbon de bois
150
100
50
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: Direction de l’environnement, 2008
The graph above shows a decrease in the consumption of wood and an increase in charcoal
consumption. These two resources are a prime source for cooking. But traditional biomass
consumption combined with the effects of drought and fires, degraded dramatically the
vegetation cover of the country. These resources are threatened by a combination of factors
and are now the subject of substantial re-vegetation programs whose results have yet to be
evaluated.
On the other hand, agricultural residues previously provided a little over 500 000 t of waste
per year, corresponding to an energy potential of about 3.7 GWh. But the events between
1991 and 2001 have led to a sharp decline in agricultural production. These activities have
since resumed, but the potential resource must be re-evaluated.
Two additional potential resources can be noted. One, Jatropha, is mentioned as a possible
help in the fight against desertification and has potential to produce biofuels. A perennial
plant which consumes little water, Jatropha could actually serve well the Mauritanian re-
vegetation program. For cons, the plant requires a sufficient amount of water to be productive
in seeds (based biofuel production), which might limit its productivity. The other plant,
Typha, would have a more limited use, replacing charcoal in the cooking and also its usage
would serve to reduce its presence in rivers and rivers, improving the conditions of the local
biome.
44
3. FUTURE DEVELOPMENT AND INVESTMENT NEEDS IN
EACH OF THE ENERGY SUB-SECTORS
3.1. OIL UPSTREAM
Sectorial policy in Hydrocarbons aims to ensure the proper management of the oil industry so
that it contributes to achieving the overall objectives of the country's sustainable
development. This policy is based on the following:
o The implementation of the new legal framework that aims to modernize the conditions
for granting oil licenses, optimizing the part of the state and the promotion of the
National Company (10% now to SMH during exploration, with financial porting by
the operator), while maintaining an acceptable level of commitment of oil companies.
Nine (09) Exploration and Production Contracts have so far been signed and approved
on the basis of the Code;
o The establishment of a database to facilitate the promotion of complimentary blocks;
o Optimizing the benefits of oil revenues by maximizing the positive effects and
mitigating the negative impacts to environmental and social;
o Protection of the Environment: a significant effort was made during the review of the
legal and regulatory framework to take into account relevant international standards in
the oil industry in order to ensure better protection of our fisheries resources and the
environment in general. This measure will be coupled with the establishment of an
environmental information system. In 2011, a socio-strategic environmental study was
completed. Also in 2012, a Environmental Commission under the Contract governing
the Chinguetti field was set up.
o The adoption of the transparency rules in the management of oil revenues to reduce
poverty.25
3.2. DOWNSTREAM
The downstream subsector of hydrocarbons is composed of segments of import, refining,
recovery in refining, transportation, storage and marketing of petroleum products.
The sub-sector is characterized by a on-going process of total withdrawal of the state from
direct exercise in the various segments to the private sector and the parastatal.
At the same time, this withdrawal will be accompanied by a strengthening of the regal
authority of the State to the establishment and implementation of a regulatory framework to
ensure the preservation of the country’s public interest, security of supply, public safety and
protection of the environment. Therefore:
o In terms of supply of liquid petroleum products, the strategy will be based on the
development and optimization of storage infrastructure to ensure security of supply
and the development of regulatory and contractual provisions with all the actors to
create the conditions for having the pump prices as down as possible.
o In terms of supply of gaseous hydrocarbons sector policy aims securing butane gas
supplies and access to the product of the neediest populations and thus reduces the
pressure on the vegetable cover.
25 Sectorial Note on Hydrocarbons, MPEM 2014
45
Perspectives and investment projects:
As part of the restructuring and subsector alterations, profound changes are expected in the
short to medium term, for instance:
o The development of liquid petroleum storage infrastructure: Rehabilitation of filing of
Nouadhibou, Nouakchott extension of the deposit;
o The rehabilitation and expansion of the storage capacity of butane gas deposits;
o Equipping of the new oil dock in Nouakchott, for the accommodation of medium-
sized tankers (TM 35000);
o Implementation of the legislation deriving from the Order 05-2002;
o Capacity building of SOMIR for its role of inspection and control;
o Strengthening compliance, through regulations and the fight against illegal practices
in the sector (in the medium term);
o Construction of new oil deposits in other areas of the country, construction of new
drilling centers in the cities of the interior;
o Development of the regulatory framework: establishment of a new legal framework
and
implementing
regulations
in
the
downstream
oil
and
gas
sector26;
3.3. Gas
The Banda Gas-to-Power Project Financing Plan
Banda Gas Project.
The estimated investment cost is US$650 million. The Banda Gas JV partners have indicated
that they will raise the necessary financing through equity contributions and that no
commercial project debt will be raised. The Bank has been informed that it is Tullow (as the
major JV partner) intends to seek additional equity investors in the Banda Gas Project.
Tullow is well advanced with their plans to secure at least one major investor prior to their
investment decision and ultimately will target an equity level of 30% in the Banda Gas
Project JV, and intends to remain as operator.
Development of the Banda natural gas project.
Total downstream costs of the project is estimated at US$467.1 million, including US$221.2
million for the 180 MW dual fuel plant, US$217.3 million for the 120 MW CCGT plant. The
dual fuel plant is being financed by the IsDB and the Arab Fund for Economic and Social
Development (AFESD).
Transmission Infrastructure
This includes three sub-components: (i) North HV line (US$170 million); (ii) OMVS line
extension (US$7 million9) which connects the SPEG power plant to the OMVS substation
south of Nouakchott; and (iii) South HV line (US$170 million).
26 MPEM 2014 Sectorial note on Hydrocarbons
46
SOMELEC has obtained US$100 million financing for the North HV line from the Saudi
Fund and has received assurance from the Saudi Fund that they are prepared to bridge the
funding gap estimated at US$70 million once procurement is complete. AFD and IsDB are
appraising the financing of the South HV line: IsDB for the Senegal portion only and both
institutions for the Mauritania portion. IsDB has approved financing for the Senegal portion
of South HV line on March 23, 2014, whereas AFD will submit its project for Board approval
by the end of May, 201427.
3.4. Electricity Power
SOMELEC currently has five power projects at an advanced stage:
i) Dual central Nouakchott: the first phase develops 120 MW of installed capacity.
Wärtsilä, a Finnish company, signed, in 2012, a turnkey contract to construct, supply and
engineer a major power plant to be built in. The second phase of this project was
finalised in late 2015 adding a production capacity of 60 MW.
ii) The photovoltaic panels facility Nouakchott has a capacity of 15 MW. It started production in
2013.
iii) The wind field south of Nouakchott produces 30 MW and started production mid of 2015
iv) Central Nouadhibou consists of two diesel groups of 11 MW. The project was funded by
AFESD in 2006 and started production in late 2012.
v) A wind farm of a capacity of 100 MW is also planned in the region of Nouadhibou
(Boulanouar) for end of 2018.
Investment
The works selected in the Master Plan for Production and Transport were essentially:
o The means of production defined in the study of supply;
o The transportation and distribution (lines HTB, HTA and associated items).
The costs of production resources employed as central Duale are from the tender recently held
for the book and negotiations that take place with the provisional successful bidder.
The costs of combined cycles (2 + 1 gas turbine steam turbine combined) are drawn from the
study feasibility of a system of generation and transmission of electricity from gas produced
by Tractebel in 2012 on behalf of the Ministry of Petroleum, Energy and Mines.
The costs of the 225 kV lines and associated positions are drawn primarily from the Proposed
Draft Detailed which follows the feasibility study mentioned above. For books and items
associated 90 kV and the HTA works (33 kV lines, 33/15 posts kV voltage networks, etc.),
the estimate is based on the experience of similar projects and the results in a recent tender
made in several African countries, including Mauritania (Works line 90 kV Bakel - Sélibaby
and associates positions) and Burkina Faso. The unit costs indicated below are based on the
27 THE BANDA GAS TO POWER PROJECT Document of
The World Bank Group Report No: 83025 - MR
47
economic conditions of 2012. They are set out all customs duties and taxes applicable in
Mauritania. They are given by Euros.
Transport and distribution
The priority program SOMELEC on connecting to other localities in RI is Presented below:
o Nouadhibou in 2015 by the construction of a 225 kV double circuit after the position of
the future Dual plant.
o Selibabi in 2014 to the position of Bakel in Senegal by a 90 kV line and the extension of
this line until Kiffa (190 km). The consultant believes that Kiffa could be connected in
2017.
o Guerrou in 2017 by a 33 kV line between Kiffa and Guerrou.
o Aleg in 2018 through a 90 kV line after the post Boghé.
o Boutilimit in 2019 by a 33 kV line between Aleg and Boutilimit.
o Magtalahjar in 2019 by a 33 kV line between Aleg and Magtalahjar.
o Tintane in 2018 by a 90 kV line after the post Kiffa28.
The following table gives the total investments in production and transmission facilities
electricity over the period 2013-2030:
Table 15 Financing of transport network investment costs between 2013 and 2030
Lines
A
SOME
ST
INVEST
Terms of Funds
mo
LEC
AT
ORS
Donors
unt
E
Mil
% OF INVESTMENT AMOUNT
G
In
In
lion
ra
ve
te
of
ce
st.
re
(y
(y
st
EU
ea
ea
RO
rs
rs
)
)
225 kV OMVS -
11,
5%
15
80%
2
1
3
3
%
0
%
Dual
90 kV Sélibabi-
22,
5%
15
80%
2
1
3
Kiffa
0
%
0
%
90 kV Boghé-
9,2
5%
15
80%
2
1
3
Aleg
%
0
%
Lines 33 kV
29,
10%
15
75%
2
1
4
5
%
0
%
28 Mauritanie: Plan directeur de production et transport de l'énergie électrique en Mauritanie
entre 2011 et 2030 - Rapport provisoire
48
225 kV NKTT -
106
2%
10
88%
4
1
3
NDB
,4
%
2
%
90 kV NKTT -
9,1
5%
15
80%
3
1
3
NDB
%
2
%
Source: Office of National de Statisque(ONS)29
Table 16 Financing of distribution network investment costs between 2013 and 2030
Lines
Amo
S OM
S
INVES
Terms of Funds
unt
ELE
T
TORS
Donors
C
A
T
E
Milli
% OF INVESTMENT
G
In
inte
on of
AMOUNT
ra
ve
rest
EUR
ce
st.
(y
(y
O
ea
ea
rs
rs
)
)
Non electrified
5,8
20%
8
0%
cities
0
%
Already electrified
2,9
80%
2
0%
cities
0
%
NKTT –
112,3
10%
1
75%
2
8
3%
Distribution grid
5
%
NKTT - MV grid
57,7
25%
1
65%
2
8
3%
0
(posts)
%
NDB – distribution
5,4
30%
7
0%
grid
0
%
Source: Office of National de Statisque (ONS)30
29 Office National de Statistique. www.ons.mr
30 Office National de Statistique. www.ons.mr
49
85% of investments are funded by donors and 15% by the state. The contribution of
SOMELEC is 0.2%. The investments include only investments in external financing. Without
external funding for investments concerning particular distribution.
Financing Investment Costs:
Except for the dual core, investment financing is not yet assured. Financial analysis is
therefore bound to be based on assumptions. The financing of investments specified in the
Activity Report 2010 shows three sources:
o SOMELEC
o State
o Donors
The amount financed by the state in the model is the contribution of a company partner.
Therefore, the state does not seek reimbursement of the amount financed or interest.
The terms of the loans provided by donors are shown in the following tables. It is assumed
that donors do not ask for interest during construction.
Disbursement and repayment are made in two instalments per year. The length of the
repayment period begins at the end of the grace period.
Table 17 Financing of investment costs for power plants between 2013 and 2030
Plants
Amo
S OM
S T
INVES
Terms of Funds
unt
ELE
AT
TORS
Donors
C
E
Millio
% OF INVES TMENT AMOUNT
G
In
in
n of
ra
ve
te
EUR
ce
st.
re
O
(y
(y
st
ea
ea
rs
rs
)
)
Rehabilitation of
7.0
20%
33
47%
2
4
4
Arafat Plant,
%
%
Dual Plant
140,0
-
2%
BID
4
1
2,
61%
0,
5
7
5
%
FADE
S 37%
1
2,
8,
5
5
%
Extension
70,0
5%
10
85%
3
8
3
%
%
Dual Plant
50
Combed Cycle
140,5
5%
15
80%
3
8
3
Plant. 1
%
%
Combed Cycle
140,5
15%
10
75%
3
8
4
Plant. 2
%
%
Wind plant
45,0
5%
15
80%
3
1
3
%
0
%
PV Plant
42,0
5%
15
80%
3
1
3
%
0
%
Source: Office National de Statistique ( ONS)31
3.5. Renewable Energy Sources:
Objectives "Energy for All
Present
Final
Initiative 2030"
situatio
result
n
(2030)
(2013/1
4)
1. Energy mix
& Promotion of
signific
Renewables
ant
Hydro power (share in OMVS)
48 MW
217 MW
Solar & Wind
60MWc
470MW
Biofuels and biogas
50KWc
Sub total of direct investments
$3, 822, 375
million
Wind and solar
i.
Park of photovoltaic panels in the region of Nouakchott with a capacity of 15 MW,
constructed by United Arab Emirates (UAE) company Masdar. The solar photovoltaic
(PV) plant was delivered in 2013 and cost almost US$32 million to build.
ii.
Wind farms in Nouakchott developed since 2013 by Spanish company Gamesa
(30MW) and Vergnet (4.4MW).
Biomass
Potential projects
Typha could be used instead of charcoal to partially reduce pressure on forest resources. A
carbonization program typha is being tested in the Rosso area and could be extended to cover
some of the needs. At the initiative of the APAUS, implemented by GRET in collaboration
with ISET and PND, the project co-funded by the EU within the framework of the FE / EU /
31 Office National de Statistique. www.ons.mr
51
ACP aims to produce a replacement charcoal wood charcoal Typha. The first production units
have been set up and should gradually be extended in the area.
Figure 11 – Rosso Typha Coal
32
Preliminary results demonstrate the value of this program in terms of restoring biodiversity,
with indication of re-appearance of the water lily and fishing in Typha cutting areas.
Moreover, the implement a gasification project / incineration of waste in the city of
Nouakchott. This could justify a capacity of 15-20 MW of electricity. The feasibility study of
the project, considered as independent production (IPP -Independent Producer- Power) is
underway.
There is also a project for sugar production in Fooum Gleita, which is currently under
evaluation. It basically generates power up to 18 MW and 10 million gallons of ethanol per
year through the use of4 bagasse.
Industry / companies / suppliers:
Regarding biomass, the main technologies produced in the country cover the improved
stoves. About 56% of the population is using solid fuels (wood and charcoal) for cooking
(30% of the urban population and 82% of the rural population). Out in the moment, only
0.4% of the population would use improved stoves (details to be confirmed). The scope for
growth is important.
The main improved stoves available homes listed include:
32 RRA Renewable Readiness Assessment - Stratégie Nationale de Développement des Energies
Renouvelables
52
o Ouaga Vita type Metallic, consuming wood and bringing potential savings of 45%. These
would cost approximately 3-6 € / unit;
o Multi 4-7-30 (home "maslaha), metal, wood consumption and to make potential savings
of 30-35%, introduced in the 1990s.
The early dissemination and training programs, supported by ESMAP, targeted the areas of
Nouakchott in 1990. They included a significant training of potential producers of improved
stoves (190 artisans blacksmiths and carpenters metal). More recently, the ProCEAO
program, funded by GIZ and European Cooperation in implemented an improved stove
dissemination project (such Vita) in Guidimaka region with homes dissemination objective
with approximately 5000 households in 2014.
The options identified in the field of biomass use are numerous, ranging from the production
of energy from waste, distribution and manufacturing of improved stoves through the
potential implementation of biodigesters. These are applicable in the context of centralized
generation and distributed energy generation. There remains a need:
o updating estimates of potential resource in terms of agriculture waste capacity of
synthetic production and use of improved stoves.
o capitalization of past experiences and success;
o updated summary of available technologies and assessment of local producers in
business.
53
4. MONOPOLIES AND PRIVATISATION ACCORDING TO
EACH ENERGY SUB-SECTOR Monopolies (legal, de facto,
natural)
Mauritania has an institutional framework suitable for investments in accordance with
international commitments, The country has undertaken significant reforms focused on the its
legal framework for business, modernization of the institutional framework and the adoption
of economic measures enshrining freedom of undertake and guarantees to investors, while
simplifying formalities and procedure required for investment in Mauritania.
The reform of the legal framework for business has been characterized by the overall
modernization and the current revision of many legal texts that govern business activity, for
instance: Investment Code, the Commercial Code, Nouadhibou Free Zone, Tax Code,
Customs Code, Labor Code, Public Procurement Code, among others.
The reform of the legal framework was accompanied by a modernization of the institutional
framework of the investment with the establishment of the Directorate General of Private
Sector Promotion DGPSP including Directorate for Single Window and Private Investment
Monitoring (DGUSIP), serving for the institutional implementation of the provisions of the
Investment Code. This structure was designed to facilitate and simplify the legal procedures
of incorporation of companies and to provide rapid response to various requests of investors.
The DGPSP plays a central role in the definition, implementation and monitoring of private
sector development strategies.
At the international level, Mauritania has signed agreements for the development and
promotion of investments (APPI), as well as double taxation agreements (CNDI)33.
The petroleum sector is open for investors through a Petroleum Code and an EPC Exploration
Production Contract (Article 12).
For: the purpose of Article 18 of the Code of crude oil, the entire national oil industry is seen
as an area open to competition within which the blocks can not in principle be subject to an ‘
‘exploration-production’ contract without following a competitive tender.
Notwithstanding this principle, a decree of the Council of Ministers may define one or more
areas within which the blocks may be the subject of direct negotiations without competitive
bidding, a reasoned proposal of the Minister of showing interest recourse to such a procedure
in relation to the areas in question (Article 18,
in fine).
4.1. Investments opportunities in the privatization process
Faced with profound economic imbalances, the Mauritanian government has undertaken,
from 1985, a structural adjustment program, implemented through the economic and financial
recovery program (PREF 1986-1988), followed by consolidation and recovery program
(89-91). The objectives of these policies involve mainly divestment of the public sector,
33 Guide de l’investissement 2014 ;p 10
54
liquidation of non-strategic public enterprises and privatization of profitable state-owned
companies
34.
4.2. Restructuring and privatization plans
In order to lay the foundations of a liberal economy, the Government of Mauritania has
prioritized the development of the private sector through the implementation of various
economic programs.
These programs have had significant results in terms of recovery and consolidation of
macroeconomic equilibrium. The country is currently in a recovery phase of economic
growth, it is now for the authorities to ensure that this growth is consolidated and that its
benefits are equitably distributed, especially in the direction of the layers that need it most. In
this context, the government decided for the abolition of monopolies, trade liberalization and
the withdrawal of the State from productive sectors.
At the sectoral level, the main reforms focused on liberalizing almost all sectors: fishing,
agriculture, agro-industry, insurance, banking, air transport, the opening of the mining sector
to private operators. SOMELEC, responsible for the distribution and production of electricity,
and SNDE, responsible for the distribution of water, were restructured.
The Government of Mauritania, partnered with international players, including the European
Union and the World Bank, has also implemented several institutional reforms.
These measures include strengthening private-public dialogue, the adoption of a new Code of
Public Contracts, creating a Directorate General specifically responsible for the promotion of
the private sector, the enactment of a new Investment Code (
see section 6.1) and the creation
of a free zone in Nouadhibou.
35
Continuity and acceleration of reforms are now strong political objectives for Mauritania, so
it can continue to improve its business climate, reduction of unemployment, corruption levels,
reduce the weight of the informal sector and support economic growth .
34 GUIDE DE L’INVESTISSEMENT 2014 ;P 13
35 GUIDE DE L’INVESTISSEMENT 2014;P 43
55
5. GENERAL LEGISLATION RELEVANT TO INVESTMENTS
5.1. Foreign investment legislation, including definitions and forms of
investments
In 31 July 2012 the new Mauritanian Investment Code was promulgated
36. The Code
provides for equal treatment for both domestic and foreign investors, protection for
investments, facilitation of administrative procedures relating to business, with the ultimate
goal of promoting investment and the increasing the diversification and competiveness of the
Mauritanian economy.
Foreign investors can benefit from the Establishment Convention Regime in the field of
Renewables (solar and wind). According to Article 24 on Establishing Conditions and
Benefits: Established conditions as well as granted specific benefits are determined in the
framework of the agreement negotiated with the relevant departments in conjunction with the
Ministry of Economic Affairs and Development and the Ministry of Finance. Established
conditions are granted for a period of twenty (20) years. Enterprises may be exempted from
following taxes:
o
Value Added Tax (VAT);
o
Tax on Salaries and Wages (TSW)
o
Tax on Industrial and Commercial Income (TICI)
o
Municipal taxes are limited to a license.
However, investments outside Nouakchott enjoy exemption on Industrial and Commercial
Income as specified in Article 22 of the present Code. The implementation of the agreement
requires an approval through a Cabinet Order
)37.
The Investment Code (Article 32) provides for the structuring of a Coordination Body
concerning general investment policy at Ministerial level including the participation of
relevant departments, the Chamber of Commerce, Industry and Agriculture in Mauritania,
enterprises, civil society, trade unions and representatives of technical and financial partners.
The latter serving as observers. This Committee aims to:
ensure consistency of government policy on the promotion and protection of investments in
the context of a global strategy for economic development;
incite dialogue in term of partnership between private and public sectors;
periodically assess activities for the promotion of investments and the effect of benefits
granted under the present Code;
prepare an annual report on investments in Mauritania and their economic and social impact.
36 Law 052 of 31 July 2012
37 Article 27 of the Investment Code 2013
56
Transparency, protection of property and non-discrimination
Transparency, protection of property and non-discrimination are investment policy principles
underlying the efforts of Mauritania to create a favorable investment climate. The protection
of persons and property is recognized and guaranteed by constitutional provisions (Articles
13, 15 and 21 of the Constitution).
The right to property is a general prerogative that applies to different properties in Mauritania.
All investments in Mauritania are protected by the Constitution, which provides in Article 15
that "the right of property is guaranteed" and expropriation cannot be carried without a public
interest command and after a fair and prior compensation.
In this regard, bilateral agreements for the promotion and protection of investments signed by
Mauritania meet international standards (
see section 6.7). They state that expropriations may
be carried in the public interest, in a non-discriminatory way and have to be followed by the
payment of prompt, adequate and effective compensation. Also, the acquisition of private
property by foreign nationals is allowed by the legal framework. Consequently, any natural or
legal person may, without distinction of nationality freely acquire or dispose of movable or
immovable property.
Building permits
The Urbanism Code regulates the conditions of issuance of building permits. This permit is
required for all new construction and any changes to existing buildings. It is supplemented by
Decree No. 2007/205 approving the General Regulations of the building which is intended to
govern the construction field by establishing a legal framework for improving the general
environment of the building and ensuring an acceptable threshold quality and safety for the
works. This decree applies to all construction work and subject to building permits or work
permits. In principle, the construction of industrial units should only be made in industrial and
commercial areas. The building permit is required for all persons for both buildings for
residential use than for commercial or industrial use. Municipal services and urban planning
must give their opinion before construction.
Establishment of enterprises
Investment Code of 2012, regulates the forms of organization and registration for economic
activities. There are no differences between establishment of national and foreign companies.
Entrepreneurship and corporate law
Mauritanian law companies are governed by Law No. 2000-05 January 18, 2000,
the Commercial Code. Any individual is free to create a society. The main forms of
commercial companies are:
o Société anonyme (SA): The SA is composed only of shareholders. Its share capital must
be at least 20 million UM if the company is publicly offering and 5,000,000 UM at least
otherwise. The SA must be made between at least five shareholders. The Director
General, who may be the chairman of the board of directors, is appointed by the Board
of Directors. The partners are liable for the company debts only up their contributions.
57
o Limited Liability Company (LLC): Formed by one or more members, the LLC is the
most common and simplest form of society. The capital of the limited liability company
is freely determined by the partners in the articles. It is divided into shares of equal
nominal value.
o Partnership (CNS): The partnership is one in which all partners have merchant status
and management of the company is ensured by themselves or by one or more paid
managers. The share capital is divided into shares of the same face value. The partners
are traders and have unlimited liability for the company debts.
o Partnership: Mauritanian law establishes the limited partnership and limited by shares.
o The limited partnership is one in which one or more partners jointly and severally liable
for the debts referred to as "general partners" with one or more partners liable for
corporate debts to the extent of their contributions known as "limited partners" or "
Limited partners "and whose capital is divided into shares.
o The limited by shares whose capital is divided into shares, is made between one or more
general partners who have the status of merchants and unlimited liability for the debts
and sponsors who have the status of shareholders and support the losses not exceeding
their contributions. The number of limited partners cannot be less than three.
o The types of companies under the Commercial Code also include the joint venture,
unincorporated and in which the partners are jointly and severally liable for the debts.
Moreover, the economic interest group (EIG), which does not have the status of a
commercial company but has a legal personality, brings together at least two members
for a fixed term to put their resources to jointly the development of part of their
activities. Among the companies formed in Mauritania, limited liability companies
(SARL, SA) account for the vast majority of legal forms adopted.
Legislation on land/immovable property/real estate acquisition by foreigners (natural persons
and legal persons)
In practice, the exercise of the right to property is real. There are no laws restricting foreign
access to land ownership; foreign investors can acquire rights of any kind in property,
concessions and administrative permits and participate in public procurement. The investor
must apply to the Minister of Finance through the services of management areas. The
property acquisition procedure is the same for nationals and foreigners. This is for the
purchase, lease or sale of real property.
(
see also section 6.1 above)
Sectoral laws
See subtitle 1.4 on Energy Industry Regulation of this Report.
Pipeline/transit regulations
Mauritania does not have gas infrastructure. The Petroleum Code, however, provides
regulation to the area of gas also, as follows:
Art.59.- The exploration and production contract provides the contractor during its period of
validity and the conditions defined therein, the right to build pipelines in the country allowing
it to transport hydrocarbons to storage points, treatment, removal or fat consumption. The
58
layout and characteristics of the lines should be established to ensure the collection, transport
and disposal of hydrocarbon production in the best technical, economic and environmental.
Art.60.- The works of transport and storage made by the contractor within or outside the
contractual scope for the purposes of development and exploitation of deposits discovered in
the scope in question are considered integral parts production facilities. The costs of the
operation and maintenance and depreciation of these works are for the purposes of income tax
deductible classified as current operating expenses of operating profit and said costs to the
excluding depreciation, are recoverable oil costs for the production sharing)
Bilateral investment treaties
Mauritania has signed tax treaties, which establish measures of mutual assistance in order for
the collection of taxes and also agreements on the promotion and reciprocal protection of
investments. They aim to provide a more transparent and predictable conditions in the area of
investment. To this day twenty conventions and agreements have been concluded between
Mauritania and third countries, including Algeria, the countries of ECWA ka, UMA, France,
Senegal, Tunisia.
Annex 1: MEMBERSHIP OF MAURITANIA IN INTERNATIONAL
ORGANISATIONS
Mauritania is a member of most international institutions such as the United Nations (and its
affiliates), the Arab League, the International Monetary Fund, the World Bank (and its
affiliated organizations, including the International Finance Corporation and the Agency
multilateral investment Guarantee [MIGA]), the International Centre for settlement of
investment Disputes (ICSID), the World trade Organization (WTO), the African
Development Bank, Islamic development Bank and the International Monetary Fund Arabic.
Regionally, Mauritania is part of the Arab Maghreb Union (AMU), which was founded in
1989 by Mauritania, Algeria, Libya, Tunisia and Morocco; to create an economic union.
Since its independence, Mauritania has signed several bilateral agreements for the protection
and promotion of investments as well as double taxation agreements "CNDI". The provisions
of these agreements offer guarantee and security to foreign investors and fall within the sense
of alignment on liberal standards recognized internationally.
Member of: ABEDA, ACCT, ACP, AfDB, FADES, AL, AMF, UMA, CUEA, CCC,
CEAO, CEA, ECOWAS, FAO, G-77, GATT, BIRD, ICAO, AID, IDB, IFAD, FCI, OIT,
FMI, OMI, INTELSAT, INTERPOL, CIO, UIT, LORCS, NAM, OUA, OCI, ONU,
CNUCED, UNESCO, ONUDI, UPU, OMS, OMPI, OMM, OMT
Source: Ministry of Foreign Affairs
59
1.
Convention on the Protection of the Ozone Layer
2.
Protocol on Substances that Deplete the Ozone Layer
Amendments to the Montreal Protocol on Substances that Deplete the Ozone
3.
Layer
4.
United Nations Framework Convention on Climate Change
Kyoto Protocol to the United Nations Framework Convention on Climate
5.
Change
Basel Convention on the Control of Transboundary Movements of Hazardous
6.
Wastes and their Disposal
7.
Stockholm Convention on Persistent Organic Pollutants (POPs)
Rotterdam Convention on the Prior Informed Consent Informed Consent
8.
Procedure for Certain Hazardous Chemicals and Pesticides in International
Trade (PIC)
9.
International Convention on Plant Protection
10.
Phytosanitary Convention for Africa
11.
African Convention on the Conservation of Nature and Natural Resources
Convention on Wetlands of International Importance especially as Waterfowl
12.
Habitat (RAMSAR)
Convention on International Trade in Endangered Species of Wild Flora and
13.
Flora (CITES)
14.
Convention on the Conservation of Migratory Species of Wild Animals
15.
Convention on Biological Diversity
60
Cartagena Protocol on Biosafety of prevention to the Convention on Biological
16.
Diversity
17.
United Nations Convention on the fight against desertification
18.
Agreement on the Conservation of African-Eurasian Migratory Water birds
19.
International Treaty on Plant Genetic Resources for Food and Agriculture
61
Annex 2: LIST OF BITS AND DTAS - List of Bilateral Investment Agreements, as of 30 June 2015
Partner
Status
Date of
Date of
signature
entry into
force
Algeria
Signed (not in force)
06/01/2008
BLEU (Belgium-Luxembourg
Economic Union)
Signed (not in force)
23/11/1983
Burkina Faso
Signed (not in force)
18/05/2001
Cameroon
Signed (not in force)
18/05/2001
Gambia
Signed (not in force)
09/05/2001
Germany
In force
08/12/1982
26/04/1986
Ghana
Signed (not in force)
18/05/2001
Guinea
Signed (not in force)
18/05/2001
Italy
In force
05/04/2003
09/12/2009
Korea, Republic of
In force
15/12/2004
21/07/2006
Kuwait
Signed (not in force)
01/08/2006
Lebanon
In force
15/06/2004
30/04/2006
Lithuania
Signed (not in force)
22/09/2012
Mauritius
Signed (not in force)
18/05/2001
Morocco
In force
13/06/2000
20/10/2003
Qatar
Signed (not in force)
25/12/2003
Romania
In force
14/03/1988
19/12/1989
Spain
Signed (not in force)
24/07/2008
Switzerland
In force
09/09/1976
30/05/1978
Tunisia
Signed (not in force)
11/03/1986
Source: UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT
62
Annex 3: EXCEPTION TO THE NATIONAL TREATMENT PRINCIPLE
EXCEPTION
COUNTRY: Mauritania
MEASURES
Investment Code 2012 - Act No. 2012 – 052 Relating to Investment Code, Article 11
SECTOR
National Economy
LEVEL OF GOVERNMENT
National
DESCRIPTION
Employment of expatriate staff (Article 11)
1.
Companies may employ expatriate staff in key positions up to 10% of managerial staff
accordance with the labour legislation in force in Mauritania.
2.
The recruitment of expatriate staff is subject to obtaining authorizations and work permits
issued by the relevant authorities for the positions to provide or equivalent if they are not
available.
PHASE-OUT
No plans for changes.
OTHER EXCEPTIONS
None
63
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2017
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