AT least US$115 million has been secured from India to develop and rehabilitate Zimbabwe’s major electricity generation installations as part of measures to improve power supply in the country. Zimbabwe, like other Sadc countries, faces electricity shortages due to increased demand triggered by industrial and population growth in the region.

The Sunday Mail has established that national power utility, Zesa, secured the funds under a government-to-government credit facility to improve generation at the Hwange and Bulawayo electricity plants. Talks are underway to finalise similar financing for Harare Thermal Power Station.

India has agreed to part with US$115,6 million for rehabilitation Bulawayo Thermal Power Station and to refurbish the Deka water pipeline to Hwange Thermal Power Station. Bulawayo will get about US$87 million of the US$100 million required to repower the small thermal station that has been mothballed for 10 years.

The repowering will see the station generate 90MW, up from current capacity of 30MW. Refurbishment of the Deka pipeline, which takes water from the Zambezi River to Hwange Thermal Power Station, has began after India released US$28,6 million to Zesa late last year.

The Deka project is expected to be completed in early 2016. Zimbabwe and India are working on the finer details for the release of a US$70 million loan that will repower two small thermal power stations in Harare to produce 60MW — up from 20MW.

Indian firm Jaguar Overseas has been awarded the tender to repower the stations. The Secretary for Energy and Power Development Mr Partson Mbiriri said: “Implementation of the tabled projects by Zesa would go a long way in easing the power shortage that is prevailing not only in the country but in the region as a whole.”

Currently, Zimbabwe produces 1 300MW of electricity against demand of 2 200MW.