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CDB and ICBC pledge to finance the 40MW Kabompo Gorge Hydropower Project
| Funder | China Development Bank (CDB)|Industrial and Commercial Bank of China (ICBC) |
|---|---|
| Recipient Organization | Copperbelt Energy Corporation (CEC) |
| Country | Zambia |
| Start Date | Jan 01, 2015 |
| End Date | Mar 06, 2030 |
| Duration | 5,543 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 59454 |
Grant Description
CDB and ICBC pledge to finance the 40MW Kabompo Gorge Hydropower Project In 2015, the Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB), and Standard Bank South Africa pledged to finance the 40MW Kabompo Gorge Hydropower Project in Zambia.
The total expected cost of the independent power project (IPP) was $220 million USD, but it is unclear how much each bank pledged to contribute.
Copperbelt Energy Corporation (CEC) anticipated that this project would be funded with a mix of debt and equity and implemented on a build-own-operate (BOO) basis.
However, there is no clear evidence that CEC-KHPL has finalized a loan agreement with CDB, ICBC, or Standard Bank South Africa. It appears that a key obstacle is absence of a Power Purchase Agreement (PPA) and off-take agreement with ZESCO. The 40MW Kabompo Gorge Hydropower Project is located in Mwinilunga District within North-Western Province.
It is on the Kabompo River, about 190 kilometers from Solwezi and 32 kilometers from the Solwezi-Mwinilunga Road.
This project would involve the construction of a 47 meter high roller compacted concrete (RCC) dam; construction of the underground power house, head race tunnel and tail tunnel; installation of two generation units to be driven by two (20MW) Francis turbines for a total 40MW capacity; rehabilitation of an existing access road (32km) to the project site; and construction of access roads (7km) near the project site.
Through this project, it is also envisaged that power will be evacuated through a 35 kilometer-long, 132kV transmission line that will join the national grid at Kalumbila mine.
Copperbelt Energy Corporation (CEC) signed a project implementation agreement on September 23, 2015 hiring Sinohydro as the EPC contractor.
CEC also created a wholly owned subsidiary and special purpose vehicle (SPV) called CEC-Kabompo Hydro Power Ltd (or CEC-KHPL) to assume responsiblility for the design, financing, and implementation of the project. Works were supposed to last three years.
According to a 2018 CEC Report, works were on-going and they were spending money on Kabompo but the funding source is unclear.
Sources & References
- Standard Bank and ICBC to raise R10 billion to support SA power generation
- REPORT OF THE COMMITTEE ON GOVERNMENT ASSURANCES FOR THE FIRST SESSION OF THE TWELFTH NATIONAL ASSEMBLY APPOINTED ON WEDNESDAY, 5TH OCTOBER 2016
- Construction of Kabompo Gorge Hydroelectric power station in Zambia set for 2016, 2013 Annual Progress Report: Sixth National Development Plan
- Kabompo Gorge Hydropower Project (40MW)
- MINISTRY OF ENERGY AND WATER DEVELOPMENT: POWER SYSTEM DEVELOPMENT MASTER PLAN FOR ZAMBIA 2010 - 2030
- Kabompo Gorge
- Chinese banks extend reach in Africa, use local expertise
- Stanbic to partner with China in driving Zambia's growth
- REPORT OF THE COMMITTEE ON ECONOMIC AFFAIRS
- ENERGY AND LABOUR FOR THE FOURTH SESSION OF THE ELEVENTH NATIONAL ASSEMBLY APPOINTED ON TUESDAY, 23RD SEPTEMBER, 2014
- Copperbelt Energy Annual Report 2018
- Copperbelt Energy: Business segments, 2019 National Economy Report, 2015 Annual Economic Report Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Copperbelt Energy Corporation (CEC)
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