The African Development Bank (AfDB) has signed a US$1.2mn grant agreement with Zambia Electricity Supply Corporation (Zesco). The funds are being used to finance advisory services for two electric power generation projects in Zambia.
The advisory services aim to help arrange and source financing for the electricity generation projects at Zambi’s Itezhitezhi and Kariba dams.
Investment in Zambia’s power generation capabilities is needed as present supplies are not meeting the demands of the country’s growing economy.
AfDB’s vice president for country policy and programmes, Joseph Eichenberger, who signed the facility for the bank, comments that the need for increased production of electricity was becoming urgent.
“This must be done as a matter of urgency,” he said. “We’re in a hurry to see that the project is executed.”
“A continued shortage of power will negatively affect economic growth in Zambia and the Southern African Development Community.”
The main drivers of this electricity demand are the mining sector, agriculture and the industrial and commercial sectors. Old mines are presently being re-capitalised, and new mines are being opened, all of which require additional electricity.
The Zambian government and Zesco have responded to the acute electricity requirements with a programme for developing new power stations.
Zesco is developing the Itezhitezhi 120MW project, with Tata Africa Holdings. The plant is being constructed on Zambia’s Kafue River, around 350km west of Lusaka, the capital.
Zesco is also developing the Kariba North Bank 360MW extension capacity project, 170km south of Lusaka. Work on the projects is due to be completed in mid-2012.
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