Friday, March 29, 2024

Kafue Gorge to get Financier

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Standard Bank Africa which operates as Stanbic Bank in Zambia is prepared to finance the construction of the Kafue Gorge Lower Power Project currently under feasibility study.

Standard Bank Africa Executive Officer, Clive Tasker said the bank is prepared to be the lead financier of the project which is expected to cost more than $1 billion.

ZNBC’s Joshua Jere reports from South Africa that Mr. Tasker said that his bank is holding discussions with authorities in Zambia on how it can participate in the project.

Mr. Tasker could not however name the authorities the bank is discussing with but noted that the bank wants to participate in infrastructure development throughout Africa.

Energy Minister, Kenneth Konga recently appealed to the private sector to get involved in financing the development of the Kafue Gorge Lower Power Station.

The station is expected to generated over 750 mega watts of power when commissioned sometime after 2011.
[ZNBC]

20 COMMENTS

  1. ZESCO used to be one of the best companies in zambia both working for and the services they offered, can someone explain to me why the standards seems to have gone down in the recent days??? they even fail to operate effectively some power stations hence we pay them alot at the end of the month.

  2. #1. ZESCO is Mr. Mwanawasa’s family business now. Sisala is on the family tree and that is what matters nowadays. Nepotism and tribalism are our president’s weaknesses. The other thing is that the president does not like empowering Zambians to the extent that they call the shots. That is why he has knifed Kavindele in the back. He knows that Kavindele would have become too powerful. On the other hand, he does not mind powerful foreigners buying up bits of Zambia. Kafue Gorge will now be mortgaged off to Stanbic Bank. After the Enock Kavindele saga, no sensible Zambians will even attempt to do business with this government.

  3. There are just so many directors at zesco, such a small company, so most of the profits end up in the pockets of these directors. the same problem happens at zamtel. you can really laugh at what is happening at zamtel

  4. #2. A foreign financial institution will have to finance the construction of lower kafue dam. Nobody has $1bn in hand. Even the mining companies are financed by financial institutions for their projects. And where did you expect Kavindele to get $400 million if not from the same financial institutions you are railing against? No Zambian bank can fund this project. So stop exposing your ignorance.

  5. I agree with #4. These chaps are so ignorant they think ZESCO can have liquid exceess cash to tune of $1bn. It is a worldwide acceptable norm that all such capital projects are financed by banks… There is no Zambian company that can raise such ndalama from their own resources…wake up

  6. #4 Kavindele should have been allowed to operate without interference. Of course he was going to get money from wherever he could. Political interference in the affairs of ZESCO, ZAMTEL, ZCCM, ZANACO, ZNBC and others is one of the biggest impediments to the empowerment of Zambians. We saw how after a lot of protestations, the government was forced to privatize ZANACO. I am afraid they will be forced to do the same to ZESCO as a condition of the Stanbic loan. If only they had allowed Zambians to run these companies without political interference, we would probably be on our way to having home grown businesses that are even capable of enlisting on the major stock exchanges.

  7. ZESCO would not be down on its knees if MMD did had not used it as a their own cash cow. Chiluba used ZESCO’s resources to campaign for Mwanawasa. MMD still have vehicles they store from ZESCO. They don’t even pay electricity bills. ZESCO is owed billions of Kwacha by government departments. #5 we all need to wake up. Our country is being mortgaged whilst you guys serve up every excuse in the book. No country has ever developed without any home grown companies – from South Africa to US. Foreigners are the first to run when things get even slightly difficult. Remember how Anglo American Corporation ditched Konkola mine?

  8. Nobody interferred with Kavindeles projects. He got the rail project in 2005 but he has failed to raise the capital. Is this the same Kavindele who failed to complete that small building at Kabwe roundabout? And please Chitapankwa were did you get the idea that ZESCO is going to get the Lower Kafue project. There has only been one joint expression of interest by CEC and KCM.

  9. No sensible government, no development. This a true rule of thumb to those Zambians who think that our nation can develop when we have a brainless / mindless leadership.

  10. A recent World Bank report laid the conditions for the injection of money into projects such as Kafue Gorge project. One of these conditions was the privatization of ZESCO. Don’t forget that Stanbic are not interested in running the power station. It is the government’s intention that the power station will be handed over to ZESCO once it is complete. Stanbic will need to ensure that their loan can be paid back. How do you suppose they will do this? It has been pointed out that it is normal for banks to finance such projects. Well, that’s true. But in Japan it would be Japanese banks doing this. In China it would be Chinese banks, and so on. In our case it is foreign banks! … cont’d

  11. … As for Kavindele, yes he has been working on the project since 2005. Projects that big do not get off the ground within months if they are being financed by private money. A lot of the mining projects that are being realised now started during the Chiluba years. The Chinese on the other hand will move fast because they use public money and profitability of the projects is never a consideration. They even ignore environmental impact.

  12. Chitampakwa, How much money did Kavindele raise towards the project???. The Total project coast exceeds USD400million and current date with Kwacha beingat 3,400/unit dollar.
    Kavindele is a Business man Yes???.. But he is a con man s well. He is a gambler without clear vision. He is just an opportunistic invstor who should not be allowed to lead a project as a Fund raiser. He has on many occasions failed to honour his obligations.

  13. #13 QUOTE:”Kavindele is a Business man Yes???.. But he is a con man s well. He is a gambler without clear vision. He is just an opportunistic invstor who should not be allowed to lead a project as a Fund raiser. He has on many occasions failed to honour his obligations.” THIS IS VERY TYPICAL OF PHD(Pull Him Down). I dont see this kind of negativevity, back stabbing and ill intention/wishing in other nationalities. Spare taxpayers money from GRZ GRZ escapades zamtel, zesco, tazara ncz etc are trouble enough

  14. Good news. Please build as many power generating stations as possible. This kind of development will not be a loss. We already have connections to international grid and would increase our power export potential exponentially. Do not let all the Luapula, Zambezi, Luangwa, Kafue and many more rivers dump their water into oceans without harnessing their benefits. They could give us all-season irrigation capabilities and surplus power.

  15. There is no company in Zambia let alone ZESCO that can fork out $1 billion dollars. The Lumwana Mine Project for instance will cost an estimated $800 million dollars and it is funded by several financial institutions. Kafue Lower once complete will generate at least 750MW making it the second largest power station in Zambia.

  16. production costs for one mega of electricty range from 0.6 cents average and yet zesco is charging 0.3 cents to consumers.the govt is subsidising the consumer and zesco is being forced to operate at below cost.no investment can be made if u a not even recovering your prodution cost let alone any profit.
    allow zesco to increase tarrifs further to cover production and profit,u will definetely see other investors coming on board.companies compete where there are profits not loses.there is no monopoly but unfair trading that is restricting new entrants.

  17. #18 andrew, ZESCO should also consider efficiency issues, from management, and production round to distribution. I bet that over 50% of that 0.6 cents is a result of avoidable costs and chargeable inefficiencies. For example, with the volume and qualifications (or rather disqualifications) of employees at ZESCO, I can’t help but think that ZESCO has an akaike staffing policy that costs the company avoidable amounts. In other words, I put it to you that the 0.6 cents you quote is inflated by avoidable overheads, and these overheads will continue existing and increasing unless radical but necess change is effected in the operations of this company, from management & production round to distri.

  18. For those of you who hail from chingola, do u know that Kavindele bought UMC, United Milling Company, uko ku chigayo champangile ama chinese during KK’s time. Go there now and u will see the mess Kavindele has done to one of the modern milling machines in zambia.
    When he was MP for chingola,the only thing i saw was a black mistubishi van he donated to the council as a manda manda.
    What of the North End Round about in Lusaka’s Cairo road? He bought the building but failed to finish until it was refurbished from 2006-2007 by the south african company and professional insurance. Ala ukukula injanji te joke ala.

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