The Government of Zimbabwe secured a $28,56 million loan facility for the upgrade and rehabilitation of the existing Deka water Pump Stations. Deka pumping stations are the sole source of water for ZPC’s Hwange thermal power station.
The Deka project is being implemented by India’s Water and Power Consultancy Services (WAPCOS), and Angelique of India was contracted as the Engineering Procurement Construction (EPC) contractor.
Angelique of India requested to Exim Bank of India (EBI) to implement the EPC contracting project in two phases, because available funds were falling short by $11 million to do the whole project at once. The project has an initial estimated cost of $39 million.
EPC turned down the request by the contractor and advised that it would carry out an independent assessment of the project. Zimbabwe Electricity Supply Authority (ZESA) Holdings CEO Mr Josh Chifamba said the insistence of EBI for the project to be implemented in one go could result in the need for additional funding.
If the independent assessment confirms additional funding requirements, the additional funding will be subject to approval by Government of India, through EBI, and the Government of Zimbabwe.
The two phase implementation suggestion by the EPC contractor included the first phase covering 30,7 kilometres at a total cost of $22 million being available funds.
Part of the $28,56 million loan facility was utilised on works done by local companies to ensure continuous supplies of water to Hwange Power Station. The other portion was for the WAPCOS services, Mr Chifamba confirmed.
The Deka project entails the upgrade and rehabilitation of the existing Deka Pumping Stations, old raw water pipeline (42 km) supplying Hwange Power Station and associated infrastructure, as well as installation of a new 42km pipeline. WAPCOS has completed 25 percent of the upgrade works on the project.