The launch came after the signing of a memorandum of understanding by the two governments for the commencement works on the development of the 750 megawatts Kafue Gorge Lower Hydro-power project last month.

 

The hydropower plant - to be situated in southern Zambia's Chikankata district - about 90 kilometres 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," the Zambian leader said.

 

The Zambian leader added that the project comes at a crucial time when the country is facing a power deficit, adding that it is one of the fast-tracked interventions he has directed to ensure that the country gets out of the power deficit.

 

The project is expected to be completed in four years with about 5 000 jobs to be be created during the construction period.

Source : allafrica.com