The Zimbabwe Power Company (ZPC) expects to reach financial closure for the $1.5b expansion of Hwange Power Station by March 2017, Zimbabwe Situation informed.
The Hwange Thermal Power Station expansion project is expected to add 600MW to the national grid from newly added units, seven and eight, ESI Africa reported.
China’s Sino Hydro was awarded the contract to expand Hwange Power Station’s production capacity by 300MW. It also won the contract to extend Kariba South power station.
In December 2016, the Zimbabwean government approved a $1b loan facility from the Asian financial institution, Exim Bank of China, which would enable work to begin on the project. The approved loan is expected to be paid back over a 20-year period with a grace period of seven years at an interest rate of 2% per annum.
Ongoing projects around Hwange power station are aimed at increasing local power generation, which stands at about 1,000MW against demand for power, at peak periods, of 1,400MW. Power utility, Zesa, uses imports to cover the power supply deficit. Government, through Zesa, is working on several initiatives across Zimbabwe; targeting excess power generation by 2018.