ZESA to raise $314 million for Hwange

• 8 years ago (2016-11-22)
• David Flin

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Zimbabwe Electricity Supply Authority (ZESA) Holdings has said that it expects to raise $314 million by the end of the year for its equity contribution towards Hwange Power Station capacity expansion to enable financial closure of the project. The Hwange Power Station capacity expansion will add 2 x 300 MW coal-fired units to be installed next to the existing 920 MW power plant.

The $1.5 billion project also includes building transmission infrastructure to allow evacuation from the plant, and new substations will be built at Hwange and Sherwood.

An EPC contract was signed in 2014 with Sino Hydro of China. A $997 million preferential buyer’s credit agreement was signed with China Exim Bank in December 2015.

In addition to Hwange, Sino Hydro won the contract for the expansion of Kariba South Power Station, to add 300 MW to the already existing 750 MW at a cost of $533 million, also funded through a China Exim Bank loan. Josh Chifamba, Chief Executive of ZESA Holdings, said that the Kariba South project was progressing well and was 62 per cent complete. The first 150 MW unit is scheduled for commissioning in December 2017, with the second 150 MW unit coming on line in March 2018.