THE Energy Regulation Board has granted Zesco Limited regulatory consent to enter into a power purchase agreement (PPA) with Kariba North Bank Extension Power Corporation Limited (KNBEPC) to supply power to Zesco for a period of 20 years.
ERB communications officer Kwali Mfuni said in a statement on March 31 that the (ERB) had granted Zesco regulatory consent to enter into the PPA in line with its mandate under the Electricity Act, Cap 433 of the Laws of Zambia.
“Under the agreement, KNBEPC will supply power to Zesco at peak periods for a maximum of three and a half hours per day,” he said.
He said the project is being financed by the China Export Import Bank and the Development Bank of South Africa at a total cost of US$420million.
Ms Mfuni said with an expected generation capacity of 360MW, the KNBEPC power plant is the first major hydro power project in 35 years not only in Zambia, but also within the Southern African Development community (SADC).
She said KNBEPC, which is a private company and a subsidiary of Zesco, will design, finance, construct, own and operate the new Kariba North Bank Extension Power Plant.
“The development of this project is strategic in addressing the regional power shortage under the Southern African Power Tool,” she said.
Ms Mfuni said contact had been established with utilities in neighbouring countries as potential customers over the possibility of supplying them with peak power.
“The development of the 360MW power plant will contribute about 20 per cent additional capacity of the existing installed capacity in the country of about 1800 MW.
“This is significant, as it will greatly contribute to reducing the prevailing power shortage particularly at peak hours,” she said.
Ms Mfuni said the feasibility study of the KNBEPC project was conducted by Sino-Hydro at a cost of US$600,000, while construction started in 2008 and commercial operations are expected to start in 2013.
She said the power plant will generate an estimated 473GWH of energy per year.
Ms Mfuni said in view of the rising demand for power and current shortages in the SADC region in general and Zambia in particular, the ERB is aware of the project’s contribution to national development.
[Zambia Daily Mail]
INFRASTRUCTURE IS ALWAYS A GOOD INVESTMENT!
BUT ON THE DETAILS THERE ARE SOME DISCREPANCIES. IT IS PRIVATE BUT A SUBSIDIARY OF ZESCO…IN WHAT WAY? WHAT STAKE OR SAY DOES ZESCO ACTUALLY HAVE? THE FEASIBILITY STUDY COST $600,000 WHILE THE PROJECT COST $420MILLION??
AND WHEN YOU TALK OF FEASIBILITY WAS IT UKUBOSHA HERE AND THERE OR WHAT?
BECAUSE AS A COUNTRY WE HAVE LOTS OF STATISTICS, WHERE POWER IS NEEDED, IN WHICH CONSTITUENCY, WHICH DISTRICT, WHERE ARE THE SHORTAGES, WE KNOW ALL THAT….AND ON AN ENGINEERING POINT OF VIEW $600,000 JUST TO EVALUATE IS TOO MUCH.
FOR THE FEASIBILITY STUDY TO HAVE COST THAT MUCH, IT MEANS FOREIGNERS DID IT FROM SCRATCH AND SHOWS A LACKING IN NATIONAL PLANNING. WHEN YOU HAVE HAD THE SAME VITAL INFRASTRUCTURE FOR SO LONG YOU SHOULD KNOW ITS WEAKNESSES AND WHAT IS NEEDED! AND IF YOU PLANNED PROPERLY YOU WOULD HAVE KNOWN THAT WE SHOULD SOURCE FUNDS TO CONSTRUCT KARIBA NORTH BANK POWER PLANT AND IN THAT CASE THERE WOULD BE NO NEED TO WASTE SUCH AMOUNTS OF MONEY ON FEASIBILITY YEKA! $600,000 CAN BENEFIT SOUTHERN PROVINCE IN VARIOUS WAYS