Zambia Signs for $2.15 Billion in Hydropower Projects in August

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--August has seen Zambia sign for $2.15 billion in new power project investments. The three hydropower projects to be covered by the investments will add 844 megawatts (MW) to the national grid power supply.

In the second week of August, Zambia's finance minister, Situmbeko Musokotwsane, signed an agreement with Chinese ambassador Li Quiangmin for the construction of the $1.5 billion Kafue Gorge Lower Hydropower Plant. ZESCO (Lusaka), the country's power utility, will develop the project with China Africa Development Fund (Beijing) and state-owned Sino Hydro (Beijing). The three entities will form a company to operate the project. The initial $1 billion of funding will be sourced from the Chinese partners.

The project, with its construction phase set to begin in April 2012, will add a minimum of 600 MW to the national grid, which is coming under pressure from a demand for new mining operations in the country.

In the fourth week of the month, the Ministry of Energy and Water Development signed a $650 million agreement with the local Lunzua Power Authority (LPA) to construct hydropower plants and transmission lines, which will provide power in the north of the country, where the mining copperbelt is situated, and to the energy-starved southern region.

A 93-MW plant will be built at Kanwelume, a 151-MW plant at Kundabwika, and a 330-kilovolt (kV), high-voltage transmission line will be built from the two power plants in the Kasama area. In addition, a 66-kV transmission line will be built from the two power plants to join the national grid network at ZESCO's Kawambwa substation at Luapula.

The projects on the Kalungwishi River in the north of the country are in an area that is not hit by droughts. This will enable a stable power supply to the grid. The project will create about 1,000 jobs during construction and will take 48 months to complete.

The Lusaka Times quotes LPA chairperson Lloyd Chingambu as saying that the project is an initiative of Zambians, and that it is an indication that Zambians have the capacity to invest in huge projects if they are supported.

Frequent power cuts have resulted from an underfunded sector and a lack of new power projects, which has created the need for power imports from neighboring countries. With a number of new projects in the pipeline, Zambia is aiming for energy security and continuous domestic supply.

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