Zambia to start construction on $1,5bn hydropower project in 2011
By: Chanel de Bruyn
17th August 2010
Construction on the $1,5-billion Kafue Gorge Lower hydropower project,
in Zambia, would start in June next year, Zambia Ministry of Energy
and Water Development office for promoting private power investment
manager Israel Phiri said on Tuesday.
At current projections, the project, which has been delayed, would
start at 600 MW of power generation, but would have a design capacity
of 750 MW.
This would require an investment of between $1,5-billion and $1,8-
billion to develop the project.
However, Phiri said the latest discussions have opened up the
possibility to boost the project's design capacity to 800 MW. The
costing for the increase would still have to be determined.
He said that the potential increase had come about as the developers
had dealt with one of the technical issues faced by the project, which
would now allow for such an increase.
Previously, construction on the project had been expected to start
this year, after the financial close had been reached by the end of
last year.
However, certain technical risks, the signing of power purchase
agreements and weak credit markets had delayed the financial close of
the project.
Meanwhile, Phiri said that 70% of the power generated at the project
would be used domestically, while the remaining 30% could be exported.
Transmission infrastructure to export the power to Zambia's southern
neighbours was in place, he noted.
Edited by: Creamer Media Reporter
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