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China,Zimbabwe : ZESCO inks power deal with SINOHYDRO CORPORATION
Publish Date : 20-Oct-2015
ZESCO has inked a contract with Sinohydro Corporation Limited of China for construction of the 750 megawatts (MW) Kafue Gorge Lower (KGL) hydro power station in Chikankata District at a cost of US$2 billion.
Zesco acting managing director Victor Mundende said, main objective of this four-year project was to increase hydro-generated electricity as the countrys demand had been growing which presently stands at 1948MW per annum.
According to Mr Mundende, the project also aims to address the growing demand for electricity in the Southern African Power Pool (SAPP), and would be funded by the Government and foreign financial institutions, among them, the Exim Bank of China.
Out of the total project cost, the Government will contribute 15 per cent equity financing, and has since released $186 million to Zesco as part of the initial investment contribution.
Mr Mundende was present at the Zesco head office in Lusaka for the signing ceremony for the engineering, procurement and construction of the KGL project with Sinohydro after recently completion of pre-contract discussions.
He said, The development and construction of the KGL hydro electric project needs to be fast-tracked, completed and commissioned to meet the increasing energy demand both in Zambia and SAPP. He further added that once completed, the facility will be linked to the national electricity grid through a 330-kilovolt transmission line approximately 100 kilometres up to the Lusaka West substation via the south multi-facility economic zone.
In the advent of the power shortages that the nation is currently experiencing, the development of this project is in the critical path, Mr Mundende added.
