Mega IPP projects to roll out in 2016

By The NewsDay | Oct. 10, 2013 | 2 Min read

MAJOR independent power generation projects are expected to roll out in 2016 amid indications that the country’s energy regulator is yet to finalise regulatory processes, an official from the Zimbabwe Electricity regulatory Authority (Zera) has said

By Victoria Mtomba

The projects are expected upon full implementation to produce over 5 000 megawatts combined, a development that will ease the perennial power crisis on the economy.

In an interview, Zera chief executive Gloria Magombo said the major projects include Sengwa, Shangano, China Africa Sunlight, Lusulu, Batoka, Essar Power Plant and Batoka.

Magombo said Sengwa was projected to produce over 2 000 megawatts, but was still at the preparatory stages and would take three years to complete.

“The projects require a lot of processes that include power purchasing and full feasibility studies and it has to be bankable. The companies have to engage various stakeholders, ensure fuel supply and they also have to go to tender before they get final grid licence.”

Magombo said small power projects took between 18-24 months to construct unlike big ones that take four years.

China Africa Sunlight is a 600-megawatt project and it’s currently awaiting the finalisation of the bankable grid. Shangano Power Plant in Hwange will produce 600 megawatts.These two projects are moving at a faster rate and will be going for financial closure soon.

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“The major challenge is that the projects need capital that is above a billion. For instance, the Hwange project would require $1,8 billion.The country was under sanctions for quite sometime which made it difficult for it to attract investors. But that has changed now, many investors have a lot of interest in Zimbabwe. Our market has no capacity to take these projects,” Magombo said.

Magombo said Lusulu would produce 2 000 megawatts and currently the mobilisation of finance was being finalised as the lead financier had been found.