ZPC looks to China to fund power expansions

• 11 years ago (2013-06-12)
• Junior Isles

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Zimbabwe Power Company (ZPC) is in talks with the Exim Bank of China over the potential financing of the expansion of Hwange Power Station, according to a government official.

Energy and Power Development permanent-secretary, Partson Mbiriri, said the Chinese investment bank was prepared to acquire 40 per cent equity in order to fund two additional 300 MW capacity power units for the plant.

"The biggest bank in China said we have the money and are prepared to participate in anything on Hwange if all the proposals are right. They said they are prepared to work with the contractor," Mbiriri said.

A ZPC delegation, including Finance minister Tendai Biti, is already in China finalising a deal to finance the US$400 million, 300MW Kariba South expansion plans.

The Hwange expansion, by contrast, will cost over $1 billion. Hwange currently has an installed capacity of 920 MW, though it is only generating 525 MW.

The two expansion plans are meant to increase ZPC’s 1200 MW generating capacity, which is insufficient to meet a local demand that often reaches 1600 MW.