‘Zim requires $864m for infrastructure projects’

via ‘Zim requires $864m for infrastructure projects’ – NewsDay Zimbabwe June 23, 2015

ZIMBABWE requires $864 million to fund infrastructure projects for power generation, Africa Development Bank (AfDB) has said.
The country’s maximum demand for power was 1 950 megawatts (MW), but 1 256MW was being generated, leaving a deficit of 600MW.

BY TARISAI MANDIZHA

AfDB country representative Mateus Magala told delegates last week at the 2015 Buy Zimbabwe Summit in Victoria Falls that Zimbabwe needed $1,242 billion for infrastructure funding in power generation projects alone and to date has $378 million funding, and there was a gap of $864 million which was required.

“Addressing Zimbabwe’s infrastructure challenges will require sustained expenditure of almost $2 billion per year over the next decade, with heavy emphasis on rehabilitation. More than half is needed for the power sector,” Magala said.

“This is the harsh reality of the situation. If the government doesn’t do anything about this the country will always lag behind in development related issues.”

The Zimbabwe Power Company (ZPC) recently announced that it would soon embark on a $570 million solar project to mitigate the crippling power shortages in the country.

The project is set to be implemented in Gwanda, Plumtree and Munyati.

The solar initiative is part of the $5 billion project expected to generate a total of 3 500MW over a period of five to six years.

Magala said Zimbabwe should at least spend $2 billion a year in infrastructure development until 2020 to be able to attract more investment and the bulk of it should be channelled towards power.

“The infrastructure gap is huge and innovative, and bold approaches will be required. I know Zimbabwe is going through a difficult time, but we have to be very innovative,” he said.

In the first quarter of 2015, Kariba Power Station was generating 51% of the power output, Hwange (30%), small thermals
(6%) and 13% was coming from imports.

Feasibility studies and engineering procurement and construction services have been ongoing to make sure the project comes out well. It is expected to start at the end of the adjudication process.

ZPC is working on the expansion works at Hwange and Kariba power stations, which is expected to add 900MW to the national grid.

Kariba South extension will involve construction of two units of 150MW each at a total cost of $355 million.
Hwange Power Station extension will see the construction of two units of 300MW each at a total cost of $1,5 billion.

COMMENTS

WORDPRESS: 2
  • comment-avatar

    Pity The Mafia destroyed the economy, isn’t it?

  • comment-avatar
    millsww 7 years ago

    I find it amusing when someone proposes investing a Billion dollars to generate electricity in Zimbabwe when half of the power currently being generated disappears, either by looting or theft, by well connected political functionaries.

    What is the point in generating incremental power when over half of what is already being generated cannot be paid for? Who will pay a fair price for it? How will the investment be amortized? If people were now paying a fair price, and they were all paying, there would be no shortage because funds would have been available to build new facilities as demand grew.

    Please keep in mind there is one thing that is worse than high-priced power; that is NO power. And there is no free lunch!