Agreement

19 May 2008 – A feasibility study for a billion dollar power station in Zambia has been funded by the World Bank, Bank officials confirmed last week.

The study will cost in the region of US$6 million and will be carried out over the next six months.

"In the next three years, we expect the physical construction of the power station to start," said Javier Calvio, an official from the International Finance Corp (IFC) division.

With a project cost of US$1 billion, the Kafue Gorge Lower hydroelectric project will be able to generate 700MW and will be the largest hydropower station financed under a public-private sector arrangement in Africa.

Financing will come from the Zambian government, IFC, Africa Development Bank and the Development Bank of South Africa.

Zambia is experiencing a generation deficit of 400MW and the additional 300MW will be exported to neighbouring countries in the region. This additional power will help ease power shortages within southern Africa.