THE Zimbabwe Power Company (ZPC) has submitted its $1,5 billion financing report to the Export Import Bank of China (China Eximbank) to kickstart the expansion of Hwange Power Station in partnership with Sino Hydro.
by VICTORIA MTOMBA
A ZPC official who declined to be named said China Eximbank had also engaged a consultant to assess the project funding requirements.
“We are also expecting Sino Hydro to send its engineers on site this February for the initial work to find out more about the site,” the ZPC official said.
The project, which is expected to be completed over the next 42 months, is meant to usher in an additional 600 megawatts to the national grid and ease the country’s power shortages.
ZPC, a wholly owned subsidiary of Zesa Holdings, is in charge of power generation at Hwange, Kariba, Munyati, Harare and Bulawayo power stations.
The power company is set to get a $1,1 billion loan from the China Eximbank with the rest of the funds expected to be sourced elsewhere. ZPC would raise equity and pay interest to the bank, consultancy, Environmental Management Agency, Zimbabwe Energy Regulatory Authority and that will come up to $1,5 billion.
The project comprises a power plant to generate electricity as well as transmission and distribution infrastructure.
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Treasury this year committed $372,4 million towards various energy projects this year.
The country currently has a power deficit of 800 megawatts against peak demand of 2 100 megawatts, a development which has negatively affected the business community.
