China Eximbank disburses $80m for Kariba

CHINA Export and Import Bank disbursed $80 million for generation capacity expansion of Kariba South Power Station on the 31st of October 2014. The $80 million disbursement is the first of several tranches to come under an engineering, procurement contract valued at $354 million.
Chinese firm Sino Hydro, is undertaking the expansion project estimated to cost about $533 million, including development costs to be met by the Zimbabwe Power Company.  Kariba South’s capacity expansion is projected to take 40 months and will add 300 megawatts to the plant’s current capacity of 750MW.
This will help to reduce power deficits at a time Zimbabwe can only produce about 1 300MW against peak demand of 2 200MW; with deficits met through imports and load shedding.
The payment schedule of the funds stretches up to 42 months and both parties have so far adhered to the provisions and are amicably pursuing the extension works that are expected to bear fruits within the stipulated timeframes to achieve security of electricity supply.The funds from China Eximbank have been used for civil works that entail the blasting and drilling of tunnels into the main power house. The funding had enabled Sino Hydro to procure key equipment such as the turbines and generators, following the ground breaking ceremony in September.
“The Bank will be disbursing money according to the interim payment certificate approved by ZPC (Zimbabwe Power Company).
Sino Hydro also won the tender for the expansion of Hwange Thermal Power Station that will add 600MW to the national grid in what is expected to reduce the power deficit.
ZPC signed a $1, 1 billion EPC contract with Sino Hydro on the 10th of October 2014 and  the project is estimated to cost $1,4 billion, including development costs, while the  project is expected to be completed by 2017.
The Sino Hydro source said potential funders of the Hwange project were expected to visit Zimbabwe for due diligence next month. “If they are satisfied we will start the evaluation procedure.
President Mugabe went to China on a State visit in August where a number of infrastructural development projects deals were sealed in his presence, including Kariba South expansion.

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