ZPC to sell 80MW to business

HARARE - Zimbabwe Power Company (ZPC) is seeking regulatory approval from the Zimbabwe Energy Regulatory Authority (Zera) to sell 80 megawatts (MW) to large electricity consumers.

The initiative is part of efforts to raise additional funds for the $380 million Kariba South expansion plan.

“The sale will be done under a power purchase agreement between ZPC and large off takers to raise additional funds for the Kariba South extension project,” said Zera.

The regulatory body added that the sale of power will be done at a load factor of 50 percent and that any objections or representations on the development were being considered only
for the next two weeks.

This comes as ZPC is expected to contribute 15 percent of the total cost of the project while the funding from China’s Sino Hydro Corporation (SHC) only covers 85 percent of the
cost.

ZPC’s parent company, Zesa Holdings (Zesa) recently said that the total cost of completing the expansion of the Kariba South Power Station would balloon to around $539 million from
the budgeted $380 million.

The power utility’s chief executive Josh Chifamba told the Mines and Energy parliamentary portfolio committee last month that the funding they were getting from China’s Sino Hydro
Corporation (SHC) only covers 85 percent of the cost.

“So that $380 million we are talking about, will be 85 percent of the cost of bringing cement, equipment, generators and auxiliary plant among others things,” he said adding that the other 15 percent would be raised locally.

“When we are doing this and because we actually get money from the bank, we should pay interest on the amount we would have borrowed. By the time we roll up those costs the total
project would have cost more,” he said.

Chifamba added that they had to raise $150 million as equity funds and that the total cost of completing the Kariba expansion project would reach up to $539 million.

“Lenders also want to know that you are taking the risk and putting a skin to it,” he said.

This comes as SHC has already moved construction equipment from Zambia to commence operations on the Zimbabwean side of the Kariba dam wall.

SHC won the tender for the $380 million project, the bulk of which will be funded by Export Import Bank of China under a deal signed with the Zimbabwe government.

Early this year, Finance minister Patrick Chinamasa said that the SHC was already in situ at the construction site.

“As you know, this Chinese contractor has just finished constructing Kariba North for the Republic of Zambia and they are just moving across the border to do the same on our side to
create an additional 300 megawatts,” said Chinamasa.

On completion, the power station’s output will be boosted to 1 050 megawatts (MW) from the current 750MW.

The project is expected to be complete by 2017.

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Comments (2)

380 to 539 million tell us what is happening. so the loosing bids where cheaper. ZIMBABWE HOYE

ngano - 26 August 2014

FOR SALE HP TONER CARTRIDGES 05A, 10A, 11A, 12A, 13A, 15A, 24A, 35A, 36A, 42A, 49A, 51A, 53A, 55A, 61A, 64A, 70A, 78A, 80A, 85A, 90A, AND MANYMORE 0772 678 311

GALLERYCARTRIDGES - 29 August 2014

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