Extension project for US $2b Hwange Power Station begins

Extension project for US $2b Hwange Power Station begins

Construction on Zimbabwe Electricity Supply Authority’s (ZESA’s) Hwange Power Station (HPS) 7 and 8 extension project has has commenced.

Engineer Patrick Chivaura, ZESA’s acting Chief Executive confirmed the reports and said that the project which is being carried out by Chinese energy systems giant, Sino Hydro, will add 600MW to the current installed power generation capacity of 920MW.

“All preparations have been completed and actual construction works of the Hwange Power Station are underway,”  said Mr. Chivaura.

Mr. Patrick further affirmed that the project which is expected to take 42 months, will be completed within time and original budget of US $2bn. The coal-fired expansion project costs US $2bn with a US $1bn contribution from China’s Exim Bank through a loan facility. Eng. Chivaura stated that they have done their first drawn down of the China loan and granted and are confident that that the project will completed in time and on budget.

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Hwange expansion project

The expansion project is expected to create more than 7 000 jobs directly and indirectly. 100 workers would be recruited on a 36 months fixed contract for the extension project. The project also requires engineers in mechanical, electrical, control and instrumentation, quality and risk as well as other administrative jobs that include logistics.

The project will also supply an additional 30% of power generation capacity in the country with a current peak period demand of 1600MW and a supply of 1400MW. The deficit is met through imports from Mozambique and South Africa

Notably, Sinohydro undertook the capacity extension works at Kariba South Power Station units 7 and 8, which added 300MW to the station’s previous capacity of 750MW. President Mnangagwa commissioned the plant in March last year.

Until the completion of Kariba South extension project, Zimbabwe imported between 350MW and 400MW, using scarce foreign currency resources, to bridge its internal power supply deficit.

 

 

1 COMMENT

  1. Its a bold statement to say the project will be completed on budget at the beginning of a 42 months journey. There are too many variables. Not many such projects are completed on budget. Only the source of half the project budget is given. I believe we can assume that the balance is from the gvt.

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