ZIMBABWE Power Company (ZPC), a subsidiary of Zesa Holdings, will today sign an agreement with a China-based company paving way for the expansion of the Kariba hydroelectric power station.
Business Reporter
Sino Hydro last month won an Engineering, Procurement and Construction Contract (EPC) to embark on Kariba South expansion project. Five companies made bids for the mega project.
Sino Hydro, according to a statement issued by ZPC, will increase generating capacity at Kariba 7 and 8 extensions.
ZPC managing director Noah Gwariro confirmed the development saying the project, which is expected to ease the country’s perennial electricity crisis, will begin next year.
“We have completed negotiations with the winning bidder, Sino Hydro, and the contract will be signed on December 20, 2012,” he said. “With the signing of the contract, the project will commence next year upon conclusion of the funding process.”
Under an EPC contract, the contractor designs the plant, procures the necessary materials and builds the project either directly or by sub-contracting some of the work.
The 300MW expansion project will take about four years to complete, and will significantly narrow the gap between supply and demand. Meanwhile, the tender for the Hwange expansion is still open, with the winning bidder expected to be announced next year.
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The Government figures show that growth in electricity generation is this year estimated at a mere 0,3% against 7,8% in 2011, reflecting operational inefficiencies associated with frequent breakdowns affecting all the thermal power stations.
Consequently, in 2012, generation averaged 1010 MW against a target of 1085 MW.
The country’s daily peak demand currently stands at 2500MW. Presenting the 2013 National Budget last month, Finance minster Tendai Biti said more private sector participation is required to boost power generation.
“In 2013, the growth rate is anticipated to marginally improve to 1,9% due to re-powering of Bulawayo and Harare Power Stations and the rehabilitation of Hwange Power Units to guarantee average generation capacity of 430 MW in 2013,” Biti said.
“In the medium term, electricity supply will require private sector participation and investment supported by demand side management measures which include installation of prepaid meters to enhance revenue collection, necessary for guaranteeing working capital requirements.
“Furthermore, the clearance of outstanding arrears by Zesa to regional generation power stations will also provide impetus for increased supply of imports to the country.”
