Government on Wednesday, 22nd March, launched the 4 billion United States Dollar Batoka Gorge Hydro-Electric Scheme implementation process with a call to the media to help market the project to potential financiers locally and abroad.
The call came ahead of a high level international investor conference that Zambia will host on 30th March, 2017, in the tourist capital Livingstone to mobilise resources for the Batoka Hydro-Electric Scheme, a joint venture with neighbouring Zimbabwe.
When he officially launched the project at a media Breakfast in Lusaka yesterday, Energy Minister David Mabumba, observed that currently, electricity demand outstripped supply in Zambia and Zimbabwe and the SADC region at large, adding that this has impacted negatively on socio-economic development.
The Minister said the situation is further compounded by the fact that there are large portions of the communities that do not have access to electricity, thereby putting pressure on the environment in search of alternative energy.
“The result is deforestation, a scourge that the SADC region is battling which has contributed to land degradation, global warming and climate change,” Hon. Mabumba told the audience which included his Permanent Secretary Brig-Gen. Emelda Chola, her Finance counterpart Mukuli Chikuba, Zambezi River Authority Chief Executive Officer, CEO, Mr Munyaradzi Munodawafa, representatives of financial institutions, the media and other stakeholders at Lusaka’s Mulungushi International Conference Centre.
He added: In response to this energy crisis in the SADC region, the Governments of Zambia and Zimbabwe have embarked on the bi-lateral Batoka Gorge Hydro-Electric Scheme 54km downstream of the Victoria Falls. The project is expected to produce 2,400 MegaWatts of electricity at an estimated cost of US$4 billion.”
The Minister said it is against this background that the Council of Ministers that govern the Zambezi River Authority made a commitment to raise funds for the Batoka project through an investor conference slated for 30th March, 2017 in Livingstone which is expected to attract multilateral development financial institutions (DFIs), bilateral cooperating partners, local, regional and multinational private sector organisations.
“The US$4 billion required to implement this project is colossal which neither Hon. Mutati nor his Zimbabwean counterpart can raise from their respective state treasuries, hence this conference aimed at raising the funds from the private sector and other development partners both locally and internationally. And you the media are our ambassadors to help us market this project to potential financiers, said Hon. Mabumba.
Earlier in his welcome remarks, Zambezi River Authority CEO Mr Munodawafa said the Batoka Gorge Hydro-Electric project was long overdue, having been mooted in the early 1990s when the cost of implementing it stood at about US$2 billion which has since doubled.
“Today, we launch the implementation process of a good, high priority project, that makes good economic sense at national, regional and continental levels – the Batoka Gorge Hydro-Electric Scheme,” he said.
PF is merely yapping~tick tock tick tock all the time.
PF lied about load shedding tears to end in 2016, but this is 2017 & load shedding is even worse now.
Instead of wasting money, the visionless PF to squander over K2million~K2 billion old currency~to remove Zambia’s membership from ICC. The K2 million can be extended to those UNZA students who missed out on bursaries,pay doctors, nurses & buy medicine for UTH which has zero currently.
PF is a curse on Zambia!
The Skeleton Key
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YOU ARE QUITE CORRECT IN YOUR STATEMENT ! WASTEFUL EXPENDITURE IS AT ITS HIGHEST EVER !
LOOTING COFFERS IS THE NAME OF THE GAME. I WONDER WHO THIS PROJECT WILL BENEFIT THE MOST ZIMBABWE OR ZAMBIA ? WHO IS GOING TO PAY FOR IT WHEN ZIMBABWE CANNOT EVEN PAY FOR BASIC MEDICINES.
You are the one who is going to pay… From what I remember from my social studies and civics, government is you the people, those people you don’t like are like it or not your representatives , the reason we choose those representatives is simply because all the people in the country can’t fit on plot one or go together to represent the mother land abroad hence the term civil servants they are your servants merely talking about them to strangers won’t change anything… You are the boss, if you don’t like what your servants are doing warn them… If they still do not change… Fire them the power is in your hands… Such speeches do not carry any weight on change of your situation, that is why you have councillors, you also have mps who don’t want to do their jobs in the name of…
Where do you stay where load shedding has gotten worse. In past month we have only had an hour without power on two occassions in Chalala.
Dear Mr/ Mrs Skeleton… You are talking about load shedding, I for one have not experienced Load shedding from the 1st of January… It appears to me that Zesco only load sheds at your home… Talk about something else please…
Dear Mr Raymond, May I suggest you talk for yourself only because we also still experience load shedding in our area.
Gentlemen just check your units in your meters and ask your dependants to stop cocking beans on your stoves. Strange to hear about load sheading. maybe now that the rains are almost over we will start experiencing that. otherwise please check units in your meters.
For a greater Development and energising the region, 2400MW to the Grid will just be fantastic. Tiyeni Nayo…. Zambia and Zimbabwe fostering development for its people. The Future is bright
Just another excuse for a free breakfast for PF cardres paid for by the taxpayer!
TEN BILLION DOLLARS kaloba borrowed and they have no money to finance this ????
Load shedding will not end under Lungu and his PF.
Didn’t the same minister recently advise Zambezi river authority to start think thinking outside the box and consider solar instead?
The problem with this project is in the attractiveness of the Financing package and options including value partners
work on the Project Finance structure and make it very attractive to all parties either as equity takers or debt providers The SPV appears heavy especially that it involves two countries with different country risk and investor perception The project should be attractive also for contractors to take a risk and in terms of operational agreements the same should be This should be the same case as in the current Kariba Dam Currently the Financing proposal for debt providers ,SPV created, the Off taker is weak and one sided Try to look at other…
options also,combining with concessional agreements THEN TRY TO SELL THE PACKAGE TO CHINAHYDRO OR SPEAK TO ZHANG BOTING, THE DEPUTY GENERAL SECRETARY OF CHINA SOCIETY FOR HYDROPOWER TO HELP SECURITIZE WITHIN THE SOCIETY IT SHOULD NOT BE AN ISSUE HONOURABLE MINISTER
TAKE A LOOK AT THE BRAHMAPUTRA RIVER AND SEE THE MEGA 28 DAMS FACILITIES AND FINANCING INCLUDING THE FAMOUS BRAHMAPUTRA DAM
USE CHINAHYDRO IT WILL FINANCE THE PROJECT EITHER AS A PPP OR ON CONCESSION AGREEMENT TO REDUCE THE PROJECT LEAD TIME CHINA HYDRO CAN FINANCE QUICKLY TO REDUCE PROJECT LEAD TIME
THEN THE TIMING APPEARS TO BE WRONG TO ATTRACT VALUE ENERGY FIRMS AND CONSULTANTS AS IT CONCIDES WITH THE HEAVILY SUBSCRIBED EVENT IN SOUTH AFRICA:THE POWER AFRICA CONFERENCE A WEEK AFTER THE FOCUS AND DEDICATION MIGHT NOT BE THERE IMMIDIATELY AFTER THIS MEGA EVENT FOR POWER PROFESSIONALS
TIMING MAY NOT BE CORRECT IMMEDIATELY AFTER UNLESS WELL MARKETED OR HELD AT THIS EVENT AT THE SIDE LINES
BOTH PROJECTS,THE KAFUE LOWWER AND BATOKA ARE NOT AS COMPLEX IN FINANCING AS THE KOYNA OR BRAHMAPUTRA SERIES IN STRUCTURE AND GEOPOLITICS MAKING IT POSSIBLE TO BE SUBSCRIBED WITH A GOOD WELL DESIGNED SPV OR SPE ////
CURRENTLY THE STRUCTURE IN THE DOCUMENTS IS PPP WETTED WITH BOT THIS IS THE TRICKY PART IN THE DOCUMENTS AND AGREEMENTS FOR FINANCIALS ESPECIALLY TO REACH USD 6 BILLION PLUS IN POSSIBLE FINANCING DEALS ALL AGREEMENTS IN DEBT CONSTRUCTION AND OPERATIONAL MUST CONVERGE BUT CURRENTLY THE DOCUMENTS ARE NOT IN AGREEMENT READ THE PROJECT CONCEPT AND SEE THE TECHNICAL TO FINANCING THAT IS WHY I PROPOSE CHINA HYDRO FOR SIMPLICITY AND LEADTIME ////
WELL ITS STILL THE SAME EXIM BANK O CHINA WORKING WITH SYNO OR CHINA HYDRO LOOKING AT THE WORKABLE ROADSHOW PROJECTS STRUCTURE AND TIME FRAME ALTERNATIVELY THE SUBSCRIPTION COULD BE LOW AND THE PREMIUM COULD BE HIGHER AND THE PROJECT COSTS COULD CAP USD 10 BILLION ON COMPLETION
OKAY SEE YOU BUT I DONOT THINK SO MAY BE WHEN I CREATE SPACE I MIGHT REGISTER TO ATTEND THE LIVINGSTONE BUT ITS TIGHT///
3 GORGES CORPORATION ANOTHER OPTION MAYBE BUT TWO SYNO AND CHINA HYDRO CORRECT THERE IS ALSO PRESTIGE AND MUSCLES AMONGST PROSPECTING COUNTRIES AND FINANCIALS BUT STRCITLY SPEAKING THE STRUCTURE AND CAPITAL OUTLAY MAKES THOSE RISK AVERSE FOR SUCH PROJECTS SWALLOW THEIR PRIDE I THINK THANKS TO LUSAKA TIMES SEE YOU NEXT TIME WE MEET AND SAFE TRIP TO LIVINGSTONE
INTERMS OF ESGs AFFECTING THE PROJECT, ITS ONLY CHINA BUT MUST BE MONITORED AND ANY ADHERSE MATIGATED
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