Published: 11 October 2013

THE Zimbabwe Power Company expects to conclude the funding agreement with China Export and Import Bank for the expansion of Kariba South hydro power plant before the end of this year.

China's Sino Hydro won the bid to expand the electricity generation capacity of ZPC with expansion expected to cost about $400 million. The station has installed capacity for 750 megawatts.

The power generation company is also working on a contract for the expansion of Hwange thermal power station and the power utility expects to complete the contract by year end as well. Both initiatives are aimed at addressing the country's huge power deficit with current reliable generation capacity standing at 1 200 megawatts against demand at peak periods of 2 200MW.

ZPC managing director Mr Noah Gwariro told the Herald Business in an interview last week that both financial closure for Kariba South and contract for Hwange could be concluded by December.

Another Chinese company called China Machinery and Energy Corporation won the bid for the expansion of Hwange units 6 and 7. The capacity expansion project is estimated to cost $1,2 billion.

"For Kariba South we are looking at reaching financial closure with China Eximbank before the end of the year. For Hwange we are still negotiating the contract (with CMEC)," said Mr Gwariro.

The Zimbabwean power generation company, a subsidiary of national power utility Zesa Holdings, is expected to bear 10 percent of the expansion project and other development costs.
- herald

You might also want to read this

• 11 500MW required to power Zimbabwe's Vision 2030
• ZPC sued for disrupting business
• Zimbabwe power outages a manifestation of endemic corruption in govt
• Power cut claims at JM Nkomo airport dismissed
• Power cuts cripple informal sector
• Judge blasts ZPC over Chivayo's solar project
• Bulawayo Power station ownership transferred illegally without council knowledge
• 'Declare Kariba an economic zone to boost tourism'
• Massive power outage hits southern Zimbabwe
• ZPC to spend $500m on Hwange