Zimbabwe: Hwange Thermal Power Station to reach financial close

Zimbabwe: Hwange Thermal Power Station to reach financial close

Following prolonged delays in the expansion of the Hwange Thermal Power Station, due to financial constraints, the project has secured $116 million to proceed.

The Zimbabwe Power Company (ZPC) is set to receive equity contributions from Standard Bank South Africa ($40 million) and Afreximbank ($76 million).

In addition, the Chinese contractor Sinohydro told The Herald Business that China Eximbank is expected to soon release about $1 billion for the project.

Sinohydro chief representative in Zimbabwe Yifeng Wu, said: “On our part we are ready, and China Exim Bank is ready and we hope the first disbursement will be happening soon as per projections and the project officially commences.”

The funding will enable ZPC to add to two 300MW generators, commonly referred to as Hwange 7 and 8 to increase power output from the country’s biggest thermal power plant. Read more…

Hwange Thermal Power Station current status

Currently, the power station has an installed capacity of 920MW. ZPC acting managing director Engineer Josh Chirukuutsi, said the firm has cleared all outstanding issues.

“ZPC has fulfilled all the conditions precedent for financial closure and we are now expecting the first draw-down for the loan,” Chirukuutsi said.

“It’s all done and we are only left with processes of disbursement but by the end of the month, we should be able to draw down from our bank. The amount is a lot but it is going to be released as per project requirements. That is how it is structured,” he added.

Zesa Holdings chief executive, engineer Josh Chifamba, also commented: “Before disbursements are done, there are conditions that should be met. All those conditions precedent have been met.

“What we are now waiting for is disbursement from where we are getting our money otherwise all the prior outstanding issues have been cleared.”

Chifamba concluded, “We are waiting for the bureaucracy of the banks and after that we will be moving to the ground breaking ceremony, which will be done by the highest office in the country.”

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