HomeRegional NewsBRICSZimbabwe: China promises $1.2bn loan for Hwange thermal power plant upgrade

Zimbabwe: China promises $1.2bn loan for Hwange thermal power plant upgrade

Chinese President Xi Jinping
Chinese President, Xi Jinping has promised to provide 1.2bn for the refurbishment of the Hwange Power Station in Zimbabwe.

In Southern Africa, finance minister Patrick Chinamasa stated that China has committed to provide a $1.2 billion loan for the refurbishment of the coal-fired Hwange thermal power plant in Zimbabwe.

Chinamasa said four agreements on electricity generation, including the expansion of Hwange would be signed, as well as deals on road construction and infrastructure development.

Chinamasa told Bloomberg Business that the work on two generators at Hwange thermal power plant will add 600MW of power to the country’s struggling power supply, which will ease the need to ration electricity.

He added that the other power projects which are going to be funded by China – referred to licenses that have been granted to Makomo Resources Ltd, China Africa Sunlight Energy Ltd and Per Lusulu Power.

750MW Kafue George Lower Hydro power project

In other power generation news involving China in Southern Africa, Zambia has recently inaugurated the construction of the 750MW Kafue George Lower Hydro power project, following the signing of the Memorandum of Understating with China last month.

According to the Namibian news, the hydro power plant will be situated in southern Zambia’s Chikankata district approximately 90 kilometres from Lusaka, making it the third largest plant in the country.

The $2 billion project will be built by China’s state-owned Sino Hydro Corporation Limited.

During the inauguration, Zambian president Edgar Lungu said that government will provide 15% in funding for the project and the 85% balance will be loaned by the China Exim Bank and Industrial and Commercial Bank of China.

“This is a viable project with an assured market for its product. This project also assures us of sustainable energy security as a nation because it will add a significant amount of power to the grid,” Lungu stated.

The project is expected to be completed in four years while creating approximately 5,000 jobs during the construction period.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.