BARCLAYS Bank Zambia Plc has financed Maamba Collieries Limited’s (MCL) 300 megawatts coal fired power plant at a cost of US$828 million.
The financing would enable MCL to complete the construction of two by 150MW plants and the construction of the new transmission line to connect to the national power grid.
Barclays Bank Zambia managing director Saviour Chibiya said the construction of the 300MW coal fired plant would help alleviate the national electricity deficit describing it as a significant step towards diversifying power generation in the country.
“Barclays Bank Zambia Plc is proud to be a part of this important transaction which is a true landmark for Zambia.
“Our role as Financial Advisor, Book Runner, Mandated Lead Arranger, Global and Hedge Coordinator is demonstration of the Bank’s commitment to support the growth of the Energy sector in line with the National Development plan of the country,” he said in a statement.
Barclays Bank Plc was appointed Global Coordinator and Lead Mandated Lead Arranger, to act on behalf of the sponsors Nava Bharat (Singapore) Pte Ltd and ZCCM Investment Holdings Plc to raise the funds.
The project finance debt was raised via two portions , the first being US$ 365 million with ECA backed tranche supported by Sinosure which is the first project finance in Sub Sahara Africa.
The second part involved a US$150 million from Development Financial Institutions (DFI).
This project could pave the way for more Sinosure backed infrastructure transactions beyond the 300MW of new power capacity.
This project would contribute approximately 17 per cent to Zambia’s installed electricity generation capacity and in the process unlock economic growth potential in the region where current electrification rates were in the region of 20 per cent.
Mr Chibiya said it was expected that project financing in Africa would take a cue from this transaction of how deals could be structured covering multiple geographies, in the infrastructure space, which was the need of the hour in Africa.
This is one approach that will help deal with the country’s problems rather than Lungu going to SADC with other Leaders to count thegrain available in the region and making st.iPod pronouncements about the regional load shedding problem. Lungu chap should stay home to work on policy issues. He cab then coordinatew with other Leaders quietly for use to see the results. Right now like DORA says he’s behaving like a civil servant MOTlike a head of STATE. CHAGWA SIT DOWN FOR ONCE.
There goes cheap electricity. For a long time Zambia’s electricity tariff has not been cost reflective. These are hard nosed capitalists who can only fund a project because they have smelled money.
“Barclays bank is happy to emit masses of carbon dioxide in the atmosphere, massively contributing to the already critical climate change”. I know we need, as a country, various sources of electricity but is coal ideal given what we know about the impending climate catastrophe? would rather have Barclays bank fund a solar scheme than this. Just thinking loud.
ZAMBIA’s carbon emissions are still very minute because there’s not much industrialization. So emitting just a bit more for the sake of power that’s currently lacking in the country will not have much impact. More industrialised countries even engage in carbon trading and still stay within their permitted amounts governed by the Rio agreement. Are you stu.pid?
While I agree that this project is economically viable and will increase industrial activity in Zambia ,I strongly object to use of coal as it poses serious environmental problems. I would prefer we invest more in Eco friendly energy resources such solar and wind power. These two have largely remained an utilized in Zambia. Currently in Europe and Asia most recent building projects have been installed to solar energy. Zambia has abundant sunshine which we can harness for domestic use and small industries.
While I agree that this project is a economically viable and will improve the local industry,I strongly object to use of coal as it will have adverse impact on the environment around.Latest projects in Europe and Asia are utilizing Solar and wind energy.Eco friendly projects should be encouraged in Zambia,as they bring about sustainable economic development and improve quality of life.
This is exciting! Encouraged to see diversification of the national power grid. With a combination of hydro, solar, wind, and coal – Zambia will have a strong power grid in the near future to support a strong and developing nation.
It’s a good thing to see positive development being financed locally. Could have been much happier to see indignous Zambians firms venture in such projects. When are we going to grow up guys? Our own money is being given to the Asians to build and own this power plant. We need to stop being traders and start Doing massive projects our selves like Dangote!
To Lusaka Times: Kindly put pictures of the key issues u re reporting. Many have observed that u re always giving raw news without backup. It shouldnt be that difficult to ask some1 in Maamba to send u pics for the plant under construction
Five big power stations in southern province supplying to the whole of Zambia. This is great. Have respect u locusts from……..
this is a great project that has been long in the works for a long time for it being coal its completely fine, the green debate actually hinder development in Africa…countries like china and usa who should reducing carbon emissions …..the rules on climate control cant and shouldn’t be the same for developing countries and developed
CEC, Zesco has invested heavily in dams o hope the follow the example set by Mamba and build a coal or solar plant