China’s Sino Hydro eyes more Zim deals

via China’s Sino Hydro eyes more Zim deals – DailyNews Live 15 October 2014

HARARE – Chinese firm Sino Hydro Corporation (Sino Hydro) says it is targeting more deals in Zimbabwe after clinching two multi-million dollar energy contracts.

Last week, the state-owned hydropower engineering and construction company signed a $1, 3 billion deal to expand Hwange thermal power station, a project that will see an additional 600 megawatts (MW) being fed into the national grid.

In 2012, Sino Hydro was also awarded a $370 million contract to expand Kariba’s hydro power station and boost its generation capacity by 300MW.

Wang Xinhuai, Sino Hydro’s vice-president for Africa, told Business Live that his company was seeking business “in almost everything to do with infrastructure”.

“We are fully ready to explore more investment opportunities in Zimbabwe,” he said.

Sino Hydro was awarded its first contract in Zimbabwe 14 years ago — the Dande irrigation project.

“Unfortunately, it was stopped after commencement due to suspension of financing,” Xinhuai said. “For the Hwange Power Plant expansion, we will execute the contract strictly and deliver the project with high quality, safety, maximum environmental protection, and with our demonstrated commitment to social responsibility,” added Xinhuai.

Sino Hydro runs a diversified business of financing, design, implementation and operation, for almost all kinds of infrastructure, including power, transportation, civil work, mining and real estate. The firm holds 65 percent of the market share in China’s large  and medium-scale hydropower project construction.

It currently has projects in more than 60 countries in Asia, Africa and America, with prospective new markets in Eastern Europe.

In June, Zimbabwe officially awarded the Hwange expansion tender to Sino Hydro after cancelling an initial offer to China Machinery and Engineering Company (CMEC).

Energy minister Dzikamai Mavhaire said CMEC failed to conclude the contract within the stipulated time-frame agreed with government and the Zimbabwe Power Company.

“Sino Hydro were the second highest bidders of the project. We would like to assure the nation that the HPS expansion project remains one of the major priorities,” he said.

It had been more than a year after CMEC won the rights to rehabilitate the thermal power station.

Zimbabwe is currently facing crippling power shortages with the national power demand at peak periods estimated to be in excess of 2 200MW against supply of about 1 000MW, with the shortfall being imported from regional power utilities.