Seven South Korean Firms are scouting for energy investment opportunities in Zimbabwe. This will include investing an initial $300 million into solar plants. This will be solar plants with the capacity to produce 220 megawatts
Mr. Partson Mbiriri is the Energy and Power Development secretary. According to him the investment by South Korean firms would be the first technical and also commercial cooperation in the field of energy.
Mr. Mbiriri said that Seondo Electric Company and Parkmate Investments have engaged ZENT with an aim of creating a joint venture over the last two years. ZENT is a Zesa subsidiary.
Additionally the consortium of companies expressed interest in the manufacture of LED bulbs, hi-tech manufacturing, subsequent manufacture of solar panels, solar water geysers and general lighting.
Drafting of a contract to this effect is ongoing. Also the State Procurement Board has already endorsed the joint venture. Consequently signing of an initial memorandum of understanding has already taken place.
The Ministry of Energy and Power Development, Seondo Electric and Hanwha Investment and Securities (HISC) will be party to the initial MoU. Substantive agreements will then follow this.
The consortium also comprises of Jung-Myung Engineering, Korea Consortium, Hyundai Power Solatech and Bund Holding Group. Seondo Electric, Hanwha and Parkmate are also part of the consortium of South Korean companies.
The aim of the visit by the South Korean Companies is exploring possibility of setting up medium size solar plants. This will happen in a number of substations across the country. The consortium is already touring these substations. The medium solar plants will be in Tokwe, Chertsey, Mutorashanga, Haven, Marondera, and others.
HISC will arrange the project financing. Estimation of the cost of the first phase is about $300 million. Unfortunately the total project cost is yet to be established. According to Mr. Mbiriri the initial power generation capacity they intend to generate is 220 megawatts. Studies in terms of social and environmental impact assessment, Grid impact and feasibility will also be handled by the consortium.