Livingstone, Zambia — ESI-AFRICA.COM — 01 April 2011 – The Zambian state power utility Zesco has been cleared to enter into a power purchase agreement with the Kariba North Bank Extension Power Corporation (KNBEPC) over a period of 20 years.
Revealing this in a statement here, the regulator said that the Kariba North Bank Extension Power Corporation project was being financed by the China Export Import Bank and the Development Bank of Southern Africa at a total cost of US$420 million.
“A feasibility study of the KNBEPC project was conducted by Sino-Hydro at a cost of US$600,000, while construction started in 2008 and commercial operations are expected to commence in 2013,” the statement said.
“The development was strategic in addressing the regional power shortage under the Southern African Power Pool, the Energy Regulation Board (ERB),” it added.
“To this effect, contact has been established with utilities in neighbouring countries as potential customers over the possibility of supplying them with peak power,” the statement continued.
The ERB said the development of a 360MW power plant would contribute about 20% additional capacity to the existing installed capacity of about 1800 MW in the country.