HARARE, November 11 (The Source) China Exim Bank on Monday gave Zimbabwe $319 million to fund the expansion of Kariba Power Station project which could help reduce the electricity crunch that has hit the manufacturing and agriculture sectors.
The project will take four years to complete and is for two power generating plants of 150 megawats which would increase Kariba Power Station’s generating capacity to 1050MW. Kariba’s six generating plants produce 125MW each.
“This should go a long way in reducing power outages that characterise our power generation. For us the energy deficit has hamstrung the growth of our economy, “said Chinamasa at an event to sign the agreement with the bank.
Chinamasa said the loan has a two percent interest rate and a five-year grace period and a 20-year tenure. Zimbabwe will contribute $35 million to the project to bring the total cost of the project to $354 million.
China’s Sinohydro won the tender for the expansion work in December last year.
China Exim Bank executive vice governor, Zhu Hongjie said the project should be completed on time.
“We hope to complete it on time to bring benefit to your people,” he said.