ICBC provides $35.25 million loan for Musonda Falls Hydroelectric Power Plant Upgrading Project (Linked to Record ID#57565, #66848)

ICBC provides $35.25 million loan for Musonda Falls Hydroelectric Power Plant Upgrading Project On January 26, 2017, the Industrial and Commercial Bank of China (ICBC) signed a $35.25 million loan facility agreement with ZESCO Limited — Zambia’s state-owned power company — for the Musonda Falls Hydroelectric Power Plant Upgrading Project.

As of December 31, 2017, the loan's amount outstanding was $29.9 million. The Musonda Falls Hydroelectric Power Plant is located in Musonda Falls within Mwense District and Luapula Province.

It is a source of power supply to seven districts in the province—namely, Chiengi, Kawambwa, Mwense, Chipili, Chembe, Nchelenge and Samfya. The purpose of this project was to upgrade the Musonda Falls Hydroelectric Power Plant from 5MW to 10MW.

This increase in local power capacity also added to the national grid capacity, thereby supporting the fishing industry, farming activities and potential mining activities in nearby communities. In 2015, Sinohydro won the 18-month contract for project implementation.

Sinohydro had previously provided two bridging loans in 2015 (as captured via Record ID#57565) and 2016 (as captured via Record ID#66848) for the same project. As of 2017, this project had achieved a 99% completion rate.

Turbine-Generator Units 6 and 7 had completed their commissioning tests and reliability runs, but commissioning tests and reliability runs for Turbine-Generator Units 1 to 5 were still ongoing by the end of 2017. The scheduled project handover date of November 18, 2017 was not achieved.

However, a 2018 Energy Sector Report published by Zambia’s Energy Regulation Board (ERG) indicates that ‘[t]he increase in [power] generation in 2018 is attributed to the [upgrading] of Musonda Falls Power Station’, which suggests that this hydroelectric power plant project was completed and put into operation in 2018.