Funding for expansion of Zimbabwe’s Hwange coal-fired plant achieved

• 6 years ago (2018-06-07)
• David Flin

Africa 320 Coal 296

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Zimbabwe has closed $1.4 billion funding for a 600 MW expansion project at the coal-fired Hwange power plant, drawing on financing from China’s Eximbank. Eximbank contributed about $1 billion of the funding for the project. Other partners involved include Afreximbank and the Zimbabwe Power Company.

Sinohydro Corporation will undertake construction of the project. KPMG, Bay Harbor, and Norton Rose Fulbright are also among participants to the deal.

Emerson Mnangagwa, President of Zimbabwe, confirmed that financial draw-down for the project has already commenced. This follows his visit to China on a state visit earlier this year. Mnangagwa said: “When we went to China, we were given a loan facility of around $1 billion for Hwange 7 and Hwange 8, whose draw-down will begin this week. In the process, we have created jobs for over 1000 people.”

The Hwange expansion project will be constructed over a period of up to three years and when complete will add 30 per cent to the country’s generation capacity.