HARARE,– The Zimbabwe Power Company says talks with China Eximbank to fund the $1,5 billion expansion works for Hwange Thermal Power Station are likely to drag into the last quarter of the year although the regulator awarded the licence for the works to begin last month.
Hwange, the country’s oldest coal-powered station is producing about 650 megawatts from an installed capacity of 920 MW but government awarded Sino Hydro Corporation the tender to add two units to increase output by 600MW in June last year after another Chinese company, China Machinery and Engineering Company, had failed to secure funding more than a year after getting the contract.
Funding for the project was among the nine major agreements signed by President Robert Mugabe when he visited China last August.
But ZPC spokesperson Fadzai Chisveto told The Source on Monday that talks with China Eximbank for a $1, 1 billion loan, which started in October last year, could take up to a year to conclude.
“We are still in negotiations with China’s Export and Import Bank for the loan, but I cannot exactly say when the negotiations would be concluded as they can take up to a year to complete,” said Chisveto.
She, however, would not be drawn on ZPC’s alternative sources of funding should the negotiations fall through.
If the talks succeed, the balance of the money would come from ZPC’s internal revenue and from unnamed financial institutions.
The Zimbabwe Energy Regulatory Authority (ZERA) in December last year awarded the national power producing company a license “to construct, own, operate and maintain Hwange Power Station Stage III for the purpose of generation and supply of electricity”.
Chisveto noted that the license was one of the “few things” that ZPC needed to get in place before work could begin.
“Now that we have been granted the license, we are quite confident that we will begin work as soon as we get the funding,” she added.
The southern African country produces 1,100 MW of power against peak demand of 2,200 MW, resulting in regular power cuts that have hit industry hard. – The Source
HARARE,– Three funeral assurance companies failed to meet the prescribed minimum capital requirement of $1,5 million in 2015 as the industry stagnated, the Insurance and Pensions Commission (IPEC) said in ...
HARARE, – Mauritius-based Flyafrica Limited, which owns 49 percent of low cost airline Flyafrcia Zimbabwe, says its local partners acted unilaterally and illegally when they surrendered the Airline operator Certificate ...
Despite attempts at curbing illegal trade, Zimbabwe's government has said it is facing rampant smuggling of banned goods at its borders.
For years now, Zimbabwe's government has been working at cracking ...
AN international think-tank has described Zimbabwe as floundering, arguing that there were very little prospects of its economy recovering.
In its latest report, the International Crisis Group (ICG) said political uncertainty ...
Kim Kardashian West is reportedly considering divorcing her rapper husband Kanye West. Rumours are circulating suggesting that the reality star is contemplating ending her two-and-a-half-year marriage after feeling “trapped” in her relationship. According to Us […]
Johnny Depp and Will Smith topped a list on Wednesday of Hollywood’s most overpaid actors, an illustration that star power does not always bring in dollars at the movie box-office. Fan favorite George Clooney also […]