13 August 2012 – The construction of a power transmission interconnector linking Zambia to Zimbabwe, Namibia and Botswana is to commence in 2014 to increase power trade among the countries. The total project funding required is US$223 million, comprising US$67 million equity and US$156 million debt financing.
The initial capacity of the interconnector will be 300 MW, and this will later be increased to 600 MW. The project is expected to increase power trading among participating utilities, as well as provide an alternative route and help decongest the existing central transmission corridor that currently passes through Zimbabwe.
Investors in the project include the African Development Bank (AfDB), Development Bank of Southern Africa (DBSA), European Investment Bank (EIB), French Development Agency and Stanbic Botswana.
Under the Zizabona agreement signed in 2008, all four countries’ power utilities, Zimbabwe Electricity Supply Authority (Zesa), Zesco of Zambia, Botswana Power Corporation (BPC) and Namibia Power Company (NamPower), are expected to finance parts of the project that fall within their national boundaries.