PRESIDENT Robert Mugabe will today officiate at the groundbreaking ceremony for the $319 million expansion works at Kariba South Power Station. BUSINESS REPORTER
The expansion will add 300 megawatts (MW) (made up of two units generating 150MW) and help ease the power deficit grappling the country.
The country generates an average of 1 200MW with demand peaking to 2 200MW.
The units will be built next to Kariba South Power Station. Construction would take 42 months to complete.
Chinese firm Sino Hydro will carry out the expansion works.
Government has so far met the conditions that were required to commence the expansion project that included the formation of a special purpose vehicle (SPV) responsible for the project, depositing a $17,2 million government contribution, transfer of assets of the power station to the SPV and signing of a power purchase agreement.
The deal requires that government assume 15% capital contribution to the total project cost and transfer of power station’s assets to the SPV. The SPV will also house all the assets of Kariba South Power Station that are critical for guaranteeing project revenue for the loan facilitated by Sino Hydro.
Sino Hydro also have a contract to carry out the 1,3 billion expansion works at Hwange Power Station.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
The expansion would add 600MW to the grid made up of two units of 300MW each. It would be completed in 42 months.
