via Govt to complete Chinese power joint venture September 12, 2014
THE joint venture between government and China Africa Sunlight Energy Private Limited (Caseco) is expected to be completed soon, a move that would ease power shortages.
Speaking at a breakfast meeting held on Wednesday, Finance minister Patrick Chinamasa said power generation was key and had to be addressed because when things normalise, power shortages would escalate due to increased demand.
“In the energy sector, we tabled the China Sunlight Gwayi integrated coal thermal transmission project at almost $2 billion. It is an independent power producer although we are joint partners with China. We are almost there,” Chinamasa said.
Of that amount, $1,3 billion will be for integrated coal mining and electricity generation and the remainder to be invested over the next five years.
The project is expected to generate 600 megawatts (MW).
Caseco is a joint venture between Chinese Shandong Taishan Sunlight Investment Company and Zimbabwe’s Oldstone Investments.
The thermal station has a capacity to produce 2,4 million tonnes of underground coal per year.
Defence secretary Martin Rushwaya signed the deal as the chairperson of Old Stone Investments in China recently with three Chinese nationals.
Caseco sub-business units are into coal mining, power generation and methane gas extraction, and will help several upstream and downstream industries.
The project is expected to create 4 500 jobs upon full implementation.
The project is one of the mega power generation activities to be rolled out in 2016 that include Sengwa, Shangano, Lusulu, Essar Power Plant and Batoka.
Last Friday, President Robert Mugabe launched the Kariba South extension project that is expected to cost $533 million.
Zimbabwe produces a total of 1 300MW of power per day against demand of 2 000MW.
The country has been lagging behind in investing in the power sector with the youngest power plant being Hwange Power Station, which is close to 30 years old.
The power utility has lined up various projects to improve its power-generation capacity.
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