The state-owned Zimbabwean Bank is set to give out US $65m in terms of floating two bonds to enhance electricity output and increase use of prepaid meters. Although Zimbabwe imports of electricity from neighboring countries the amount is not enough given that it produces 1300MW of power against a demand of 2200MW.
Part of the money will go into the upgrading of a small power plant in Harare, and also in the extension of the Kariba Hydro Power Station which is currently running at a capacity of 750MW.
The Kariba Dam was expanded by Sino Hydro a Chinese firm to add 750MW on output capacity. 90 percent of the cost of this power project will be covered by China’s Eximbank.
On the other hand, Harare dam production capacity will be increased from 25MW to 65MW.
According to the Head of Projects at Infrastructure and Development Bank of Zimbabwe (IDBZ) Tonderai Nhaka, US $15m will be issued as a bond while US $50m will be given with coupons of 8 percent for five years for the purchase of pre-paid meters.
Both projects will help in the raise of power generation in the country. This will in turn lead to the decrease of the amount of import bills currently standing at US $388m per annum. Sino Hydro Corporation has also been involved in expanding Hwange Power Station. Zimbabwe is also planning to add more power into the grid by investing in small thermal plants in Harare, Bulawayo and Munyati.