The Zimbabwe Power Company (ZPC) plans to invest over $500 million into the rehabilitation of the Hwange Thermal Power Station. The power utility intends to revamp units 1 to 5 in order to extend its lifespan by between 15 to 20 years.
ZPC wants to increase the power station’s output potential to 800 megawatts from the current 450 megawatts.
Hwange Thermal Power Station has a design capacity of 920MW but is currently producing an average of 450MW to 500MW due to ageing equipment.
However, ZESA has not yet been able to raise the required amount. According to minutes of a recent board meeting, only $310 million has been raised of the required $510 million. The $310 million has been committed by an Indian bank.
Part of the minutes of the board meeting reads as follows,
The board inquired on the progress on the $310 million loans from India for the Hwange Power Station life extension project. Management in response advised the meeting that there were some limitations as the loan was not adequate to refurbish all the five units, which required about $510 million.
Management was advised to make sure that they come up with recommendations that would see the project being undertaken in 2019.