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MASSIVE BUSINESS OPPORTUNITIES IN EEC’S E780 MILLION EXPANSION

By KWANELE DHLADHLA | 2020-08-09

Eswatini Electricity Company (EEC) network expansion project valued at E780 million has presented a number of business opportunities for Eswatini businesses.

In the Environmental and Social Impact Assessment (ESIA) report availed by EEC, it was explained that the project funded by the World Bank through the Network Reinforcement and Access Project (NRAP) to be implemented by EEC will source supplies including, but not limited to, cement, trucks, cranes, reels and cable drums from local companies.

“The construction of the transmission and distribution lines and sub-stations will require materials and equipment which will be sourced locally and internationally and will in-effect boost the local business enterprises through supply of locally available materials and equipment. Electricity is a significant trigger of economic growth and establishment of small and micro-enterprises by the local communities. Businesses are likely to increase and operate even late in the night due to presence of lighting hence spur economic growth,” read the document in part.

It was explained that the construction of the transmission and distribution lines and substations including operation and maintenance activities provide employment opportunities directly and indirectly to skilled as well as unskilled manpower primarily to local manpower. Routine and periodic maintenance activities during the operation phase would generate direct employment not necessarily to the local communities but to the staff of EEC.     

It should, however, be mentioned that the exact number of employment opportunities could be known when the project has passed the environmental impact assessment stage.  

EEC mentioned that the proposed project supports the government’s  goal of providing access to modern energy to all by 2022 as stated in the National Energy Policy.

It was pointed out that the project would target the Shiselweni region and strengthen the electricity network to improve the quality and reliability of service and increase access to electricity.

The project has three components: (i) reinforcement of expansion of the transmission and distribution network; (ii) increasing electricity access; (iii) analytical support and capacity building. Through the ministry of natural resources and energy, the proposed project supports government’s goal to provide universal access to electricity by 2022. 

The Shiselweni region remains the poorest of the four regions in the country with high poverty indices 1. 67.2 percent of the region’s population live below the poverty line with 21.1 per cent described as living in extreme poverty.

“The proposed project will strengthen the electricity network in the Shiselweni region to improve the reliability of service and increase access to electricity for domestic and productive uses by: 1) Reducing transmission system interruptions in the region,” said EEC.

It has been anticipated that the project will reduce distribution system interruptions in the region and increase the number of households provided with electricity in the region.

Other benefits also include reducing the high technical system losses that were inherent with low voltage transmission systems.

Project

“The project is also expected to support proposed future developments in Shiselweni, such as large-scale agriculture and bulk water supply. Adequate and reliable power has the potential to engender private sector entrepreneurial activities, most particularly in agriculture,” added EEC.

There is a likelihood that the construction of the sub-stations and electricity lines will lead to physical and economic displacement since some sections of the proposed alignment as determined by preliminary routing are likely to be on private land.

This was disclosed in the Environmental and Social Impact Assessment (ESIA) report for the project valued at E780 million.

It was explained that prior to commencement of construction activities, the contractor would have to possess the right of way (ROW), through a site hand over which would be facilitated by Eswatini Electricity Company (EEC) where the transmission passes and where the sub-stations will be located.

It was stated that a resettlement Policy Framework (RPF) has been prepared for the project and Resettlement Action Plan (RAP) will be prepared based on the detailed design which will show the exact route of the electricity lines and location of sub-stations.

“The RAP will ensure that all the displaced persons (physical and or economical) will be compensated in accordance with Eswatini’s compensation guidelines, including livelihood restoration as needed,” said EEC.

It was clarified that construction activities would not commence until all Project Affected Households (PAHs) based on the RAP were compensated.

Construction

It was added that in obtaining necessary permitting requirements, a number of environmental and social permitting requirements would be required to be obtained for the project as per the statutes of the Eswatini’s Government before the construction commences.

These include, among others, the Environmental Impact Assessment License issued by Eswatini Environment Authority.

Once the project receives its final permits, EEC said construction crews would begin clearing or trimming the transmission corridor where necessary. This could include clearing trees and brush to provide construction crews and their equipment safe access to the work site and enough clearance for the reliable operation of the line.

When construction gets completed, disturbed areas will be restored. Native shrubs and ground cover would be allowed to regrow.

“To meet electric industry vegetation clearance standards, species of trees deemed non-compatible for transmission corridors must be permanently removed. These are trees that could become tall enough to grow or fall into the high-voltage transmission lines. Vegetation clearing will be done (where required) in accordance with the EEC standards and host country Environmental Management Act 2002,” added EEC.

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