Post date: Jul 21, 2011 3:3:4 PM
Zambia commissions the construction of a 2 billion US dollars Kafue Gorge Lower Hydro-electric Power Station, which will add 750 megawatts of power to the national grid once completed in 2017.
KAFUE, ZAMBIA (JULY 20, 2011) (REUTERS - Construction on the 750 megawatt (MW) Kafue Gorge Lower power plant in Zambia began on Wednesday (July 20) and the project is expected to be completed by 2017.
Initial cost estimates were revised upwards from 1.5 billion US dollars to 2 billion after costs of borrowing were factored in, a project report showed.
Sinozam Power Corporation, a joint venture between Zambian state power company Zesco and two Chinese firms, is to build and operate the plant before handing it to Zesco after 30 years.
About 70 percent of the financing for the project will be loans from the two contractors, China-Africa Development Fund and Sino-Hydro, and the remainder will be provided by Zesco.
Speaking at the launch, Chinese Ambassador to Zambia Zhou Yu Xiao said the new plant would create hundreds of jobs for Zambian workers."This project with a total investment of 2 billion US dollars over the next six years and a generation capacity of 750 megawatts will play an important role in meeting the fast growing power needs within this country and facilitating power export to neighbouring countries when completed," he said.
Zambia's President Rupiah Banda said in a speech after unveiling a plaque at the site that the new plant was another symbol of the country's booming economy.
"Zambia's power needs have been increasing faster than projected largely due to the rapid of our economy which has averaged 6.4 percent over the last six years. Notably, mining and agriculture have registered increased growth during the last five years," he said.
Zambia typically generates 1,400 MW per hour of electricity and consumes about 800 MW per hour, but the demand rises to 1,500 MW at peak times when many domestic users switch on heaters.