US$5b power project on cards

China to invest US$5 billion towards the construction of a thermal power plant in Gwayi, Matabeleland North.

THREE Chinese companies intend to invest about US$5 billion towards the construction of a thermal power plant in Gwayi, Matabeleland North, a development expected to help ease power shortages in the country. The project which is also expected to include coal mining in the area, would be done in phases.

It is being spearheaded by a Chinese consortium comprising multi-national power generation and electrical equipment manufacturing company, Shanghai Electric Group, Shenergy Co Limited – a company engaged in investment, construction, operation and management of power projects — and Nan Jiang Group — another giant in the power sector.

The thermal power plant would initially add 300 megawatts (MW) to the national grid and later raise this to 1 200MW. On completion, the power plant would be the biggest project undertaken in the country to increase power supply since Hwange Thermal Power Station and Kariba Hydro Power Station were constructed in 1973 and 1955 respectively. The three companies and the Government of Zimbabwe were expected to sign a Memorandum of Understanding (MoU) on the thermal power plant and coal mining projects.

Zheng Jianhua, president of Shanghai Electric, said land for coal mining has been promised by government. “The whole idea is to build up to a 1200MW power station. This will obviously be done in phases of 300MW. By the time we build up this project to produce 1 200MW, plus or minus US$4 billion to US$5 billion would have been invested into the project. This is for the power plant and coal mining. As for the land for the coalfields- we registered a company but not yet finalised,” said Jianhua.

“The building process is very complicated so at this point in time we can’t say how long it will take but we hope government will approve quickly.” Jianhua said after the signing of the MoU, the Chinese consortium and government would start contract negotiations. Project advising firm, Elbtree Capital headed by former CBZ chief executive officer, Nyasha Makuvise, is the local technical partner for the Gwayi project while Nanxiang Southern Africa, which is part of Sino-Zimbabwe group chaired by Jonathan Kadzura, is also involved.

Zimbabwe is currently facing serious power shortages due to inadequate generating capacity with businesses and households enduring long periods of load shedding. The national power demand at peak periods is estimated to be at 2 200MW against available generation of about 1 200MW with the shortfall being imported from regional power utilities.

But government, through the Zimbabwe Power Company, is working to close the electricity deficit in the country through the expansion of Kariba South Hydro Power Station to add 300MW to the national grid. Sino Hydro Corporation, a Chinese contractor has already started expansion work at Kariba South power plant.

Government is also working on another expansion project at Hwange Thermal Power Station. The power station is currently using six units and the expansion would see the thermal power station adding two more units which would have a combined generation capacity of 600MW.

Zimbabwe is also pursuing several other power projects which include solar projects and the US$2,5 billion Batoka Gorge project along the Zambezi River, some 54 kilometres downstream of the Victoria Falls. The multi-billion hydro power project which is being driven by the Zambezi River Authority, a company owned by the Zimbabwean and Zambian governments is expected to generate 1 600MW of electricity to be shared equally by the two countries.

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