Edgar Lungu, President of Zambia
Zambia has recently launched the construction of a China-aided major hydro-power project, which will go a long way in boosting the country’s electricity generation capacity.
The launch came after the signing of a memorandum of understanding by the two governments for the commencement of works on the development of the 750 megawatts Kafue Gorge Lower Hydro-power project last month.
The hydropower plant which will be situated in the Southern part of Zambia’s Chikankata district, about 90 kilometers from Lusaka, the country’s capital, will become the third-largest power plant and the first major investment in the country’s energy infrastructure in 40 years. The US$2 billion dollars project will be constructed by China’s state-owned Sino Hydro Corporation Limited.
Zambian President Edgar Lungu said during the launch that his government will provide 15% of the project cost equity funding, while the contractor will assist in arranging 85% of the total project cost as debt financing from the China Exim Bank and Industrial and Commercial Bank of China.
“This is a viable project with an assured market for its product. This project also assures us of sustainable energy security as a nation because it will add a significant amount of power to the grid,” adding that the project comes at a crucial time when the country is facing a power deficit. He also stated that it is one of the fast-tracked interventions he has directed to ensure that the country gets out of the power deficit.
Yang Youming, the Chinese Ambassador to Zambia, urged the company to complete the project within the stipulated period and provide a good service, adding that the launch of the construction works of the projects signals the growing cooperation relations between the two countries.
The project is expected to be completed in four years with about 5 000 jobs to be created during the construction period.
