via Deka project gets $30m | The Herald 27 November 2014 by Golden Sibanda
THE Export and Import Bank of India has released the $28,6 million loan to Zimbabwe Power Company to finance the expansion of the Deka Pipeline.
The Deka pipeline carries water used for power generation from Zambezi River to the Hwange Power Station, which is also set to have its capacity increased. The funds would also be used for the rehabilitation of the old pipeline and reservoirs that hold water for the power station’s operational units. Hwange Power Station will have its generation capacity extended by two units.
Sources said the funds from India, secured under a government to government agreement, would finance pipeline capacity upgrade and rehabilitation, ahead of the power plant’s generation capacity extension.
“The funds have been released, the project will start soon. The tenders have been flighted. So far they are on the tender opening price, in which only Indian firms participated,” said a source.
The process would be followed by adjudication on the tenders to determine whether the submitted bids fall within the budget.
“For now, they are waiting to know what the price is, if it is good, ZPC will award the tender for the work,” the source said, requesting anonymity.
With Hwange Power Station’s generation capacity set to be extended by 600 megawatts, the source added, it was inevitable that the capacity of the Deka Pipeline also had to be expanded to carry more volumes. The move is meant to increase the supply of raw water for electricity generation from the Zambezi River into Hwange Thermal Power Station.
Zimbabwe’s largest coal-fired power station accounts for about 40 percent of the country’s power output, which averages 1 300 megawatts, leaving crippling shortfall from peak demand for power estimated at 2 200MW.
Chinese company Sino Hydro recently signed an engineering, procurement and construction contract with Government for expansion of Hwange Power Station’s capacity at a cost of $1,5 billion. Sino Hydro also landed the contract to increase Kariba South’s hydropower generation capacity from 750MW by 300MW, as Government leaves no stone unturned it its quest to stem the power deficit.
Indian company, Water and Power Services Consultants, wholly owned by the Indian government, are the engineering consultants for the project. The pipeline expansion project is expected to be completed by 2015.
The Deka Pipeline carries raw water from the Zambezi River into two reservoirs with capacity for 150 000m³, which supply the plant for power generation. However, reliability of its pumping system has over the years declined, resulting in uncertainty of water supply to the Hwange power plant and Zimbabwe National Water Authority water treatment plant.
Hwange Power Station requires 3 500m³ of raw water per hour, and this may increase to about 6 000m³/hr when the expansion units come into force.
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