Crown International | China Expected To start US$1.3 billion
Posted in the Business News Forum
Since: May 13
#1 Oct 9, 2013
China Expected To start US$1.3 billion Hwange Thermal Station Expansion Project
Harare-The Zimbabwe Power Company (ZPC) is embarking on a US$1,3 billion expansion programme for Hwange Thermal Station in a move that will see the power utility increase its power generation by 600 megawatts.
The tender for the expansion of Hwange Thermal Power Station was awarded to China Machinery Engineering Co-operation (CMEC) by the State Procurement Board and contract negotiations have been under way since May this year.
The expansion project will see the thermal station having two additional units each producing 300 megawatts of power.
The initiative has seen a ZPC team visit Shanghai, Harbin Boiler Turbine and Generator Manufacturers in China to have an appreciation of the projects that have been undertaken by CMEC.
Speaking during a ministerial visit at Hwange Thermal Power Station, Zimbabwe Power Company General Manager in charge of projects Washington Mareya said funding negotiations which had stopped before elections have resumed.
He said they will include the finalisation of the Bill of Quantities and commercial negotiations, while the signing of the contract is expected to be held on the 11th of next month.
Mareya said the power utility is also embarking on another expansion programme which will see the installation of an additional two units each producing 150 megawatts at a cost of US$354 million at Kariba Hydro-Electric Power Station.
Sino-Hydro of China which has been awarded the contract to undertake the Kariba Power Station expansion programme is already on the site to carry out investigations which will pave way for the basic design for the project which is expected to take 42 months to complete.
Meanwhile, ZPC is also embarking on the Gairezi Mini-Hydro Project which is expected to produce 30 megawatts at cost of US$120 million and the feasibility study has been carried out while the Environmental Impact Assessment (EIA) has been approved.
The project is expected to take up to 36 months.
The expansion projects that the power utility is embarking on have been initiated at a time when the country is undergoing excessive power cuts due to frequent breakdowns and use of obsolete equipment, among other factors.
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