US$3 billion power plant planned for Zim
by Charles Tembo Saturday 11 September 2010
HARARE – Zimbabwean energy development minister Elton Mangoma said on Friday
that the country was set to grant a licence to a French consortium to set up
a US$3 billion electricity generation project.
Mangoma did not name the consortium but described the deal as good as
sealed, adding that the French investors were likely to receive a licence
“possibly before the end of the month”.
Zimbabwe, which suffers incessant power outages because of low generation,
has already signed awarded a licence to Zimbabwe Stock Exchange-listed
RioZim to develop up a US$4 billion project in the south-western Gokwe
Sengwa coalfields expected to produce about 2 400 MW.
Mangoma said: “We have already given a license to RioZim for the Gokwe
Sengwa coal fields which will produce about 2400MW and this project is
expected to come in line in 2014. I have on my desk a proposal by a French
consortium that wants to generate 2000 .. the French investment is close to
US$3 billion.”
Zimbabwe’s total requirement stands at 2 000MW, but the country is currently
generating around 1 100MW.
The country imports 150MW from Mozambique and another 125MW from Zambia in a
bid to ease power shortages.
The state-owned Zimbabwe Electricity Supply Authority inability over the
years to boost generation capacity at its ageing power stations and a
critical shortage of foreign currency to import adequate electricity from
neighbouring countries has left Zimbabwe grappling with severe power
shortages.
The government energy utility has previously said cash-rich foreign
investors remain reluctant to provide funding badly needed to boost power
generation because of uncertainty about the country’s future political and
economic direction.
But Mangoma said Zimbabwe’s risk factor was no longer as high as before and
said this coupled with viable tariffs since introduction of the US dollar
and other foreign currencies in place of the local dollars was drawing
investors into the energy sector where potential for growth is high. —
ZimOnline.