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Saturday, March 6, 2021

Chinese firm, ZESCO seal US$243M pact

Economy Chinese firm, ZESCO seal US$243M pact

The Zambia Electricity Supply Limited (ZESCO) and Sinohydro of China have signed a contract for the engineering, procurement and construction of the Kariba North Bank extension hydro project at the cost of US$ 243 Million.

ZESCO Managing Director, Rodney Sisala signed for ZESCO and Sinohydro contractors Deputy Managing Director, Song Dongsheng signed on behalf of the company.

Speaking at the signing ceremony in Lusaka today, ZESCO Managing Director, Rodney Sisala said the project will be an extension to the already existing Kariba north bank PowerStation expected to be completed with four years.

Mr Sisala noted the extension which is will be a 360MW capacity plant underground adjacent to the existing machinery will increase capacity of the kariba north bank to 1080MW from the current 600MW.

He explained that 85% of the total cost will be provided by China Export Import Bank (China EXIM Bank) adding that the balance will be sourced from other financing institutions.

Mr Sisala noted implementation of the project will commence in early 2008 as soon as the financial discussions are completed with China EXIM bank.

He said that ZESCO and Sinohydro have agreed to accelerate the development of the project in order to caution the power supply deficit which Zambia is faced with.

Speaking at the same function, Energy and Water Development Minister, Kenneth Konga said that the signing ceremony marks a milestone in the development of power projects in Zambia as government has set targets for household access to electricity that require large amounts of power.

Mr Konga noted that there has been a rapid demand for electricity in Zambia and the region adding there is need for new power generation if the looming power deficit is to be controlled.

He noted that studies by the Southern African Power Pool (SAPP) have shown that due to the high economic growth taking place in the region, the demand for power will exceed the installed capacity from 2008.

Mr Konga observed that hence there is need for Zambia to take deliberate steps to develop new poor generation sources as it will have few alternatives of importing power from neighbouring countries as most of them will face similar situations.

He urged ZESCO and Sinohydro to accelerate their efforts to ensure that the project is implemented without delay.

Mr Konga noted that the shortage of power will not only affect the existing economic infrastructure but will also act as a barrier for other prospective investors.

Speaking earlier, Sinohydro Deputy Managing Director, Song Dongsheng promised to do quality works and within the stipulated time.

And China EXIM Bank General Manager, Dai Chunning said that the Chinese government is honoured to assist Zambia to help solve the electricity deficit.

13 COMMENTS

  1. I don`t know well these chinese the kind of development their are bringing to zambia.stealing of copperwire and mistreating of workers.that`s what you call development.we want to see real change,not cheap labor.

  2. Ifima chinese ifipuba! They even fly toilet cleaners from their land to Zambia.
    I hate that country. Ba fimbwi tabakaleke akaso, bukabolala bwa ma cable and mistreating Zambians

  3. Its funny the way China is working. They steal and give a bit to pacify. Its like blowing air on the wound which is not treatment. We expect China give decent wages and empower the Zambias. Those thieves in Ndola…

  4. #2 Libani,i dont like your thinking at all,you seem to be an iliterate ***** with no common sense,from the blues you start mentioning Honourable Sata in this nonsense,i tell u ndekusalula nge fyo le fwaya…mafi yobe,noushisekelemo…

  5. Hey sino infestors, you really trying hard to impress i wonder why? Could there be something you are hiding. Thank you nonetheless for a worthwhile investment, wonder what’s in it for you new slave owners of Africa.

  6. If my facts are still correct that project only benefits the Chinese govt both in short and long term.

    ZNTB must explain why the project never went to tender and Konga and Sisala must explain the criteria used to embark on a project with a negative NPV.

    Membe you and your staff have show interest in projects of this magnitude – project evaluation reports will show that something is amiss with this whole. LPM and his mates have done it again!

  7. #9. I am sure you have heard the outcry of the masses from loadshedding and read the report on the anticipated increase in demend for 2008. Do you believe that this is NOT justification enough for the extention of generating capacity. IT IS NOT ALWAYS ABOUT MONEY BUT LET US ALSO CONSIDER THE SOCIAL BENEFITS

  8. Well I am glad to see it is a general understanding that the Chinese Government are slowly but surely worming there way into every aspect of Africas Economy. Is this maybe a component of a Master Plan???????????????????????????????????

    I am working with chinese investors in Uganda and the only remark i can give is there is far better investors in the world why are we “Africans” always settling for second best?????????

  9. Dear friend .
    Asian companies are trying to sell cheaper goods and services and expanding in areas where western companies exploited African countries for centuries. So it is better African countries relay on Asian companies than getting exploited again and again by western companies .

  10. There deal is fine. Its leaves alot of challenges to the zambian Professors, designers, engineers, etc,.
    Why can’t we do it on our on?

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