Monday, May 18, 2009

Joint Media Statement: CEC and TATA partner for Kabompo Gorge Hydro Electric Project

Copperbelt Energy Corporation PLC (CEC) and Tata Africa Holdings (PTY) have been awarded the concession to jointly carry out a detailed feasibility study for the development of the Kabompo Gorge Hydro-Electric power project.

This is the first phase of the proposed Greenfield minimum 34MW hydro-electric power plant estimated to cost US$80million. Assuming that the recommendation from the feasibility study is positive, the power station is expected to be commissioned by the year 2014.The overall project implementation period is estimated at 70 months.

The first phase is to be completed within 12 months and will include analysis of hydrological and geological aspects of the project site; preliminary surveys of the overall project area; recommendation of the optimum transmission line and preliminary engineering designs, project estimates and financial analysis.

Assuming a favourable outcome to the detailed feasibility study, CEC and TATA intend to negotiate a suitable agreement with the Government and proceed to develop the project on Build Own and Operate (BOO) basis.

This will involve building the dam wall and related water tunnels; power station and its related plant and a transmission line estimated at about 80km to the nearest ZESCO Ltd substation; houses for employees and other facilities for an estimated community of about 50 households.

The project will be developed as a joint venture between CEC and Tata, who will form a Special Purpose Vehicle company to be called Kabompo Hydro Company.

Tata Africa Holdings Managing Director Mr. Raman Dhawan said: "TAHL is already participating in the development of the Itezhi-tezhi power station with ZESCO Ltd, estimated to cost US$180million and Tata Power, one of the Tata Group companies, which has expertise in both hydro and thermal power generation, is currently implementing a 4,000MW thermal power plant in India, which was awarded through an international competitive bidding process."

"We are now entering into partnership with CEC for this project. There is a synergy between the two companies to develop the project. This new investment in the power sector will contribute to meet the deficit of power within Zambia."

Mr. Dhawan said Tata was pleased to have a dynamic partner like CEC and the Government of Zambia.

CEC Executive Chairman Hanson Sindowe said: "Demand for electricity is expected to continue increasing because of increased mining in the Copperbelt and North-Western provinces and the emergence of economic development zones in the Copperbelt, Lusaka and other areas. In Zambia, there are sites capable of generating 6,000MW of hydro power, which have been identified and await development."

"The investment we plan to put in now must aim to ensure that investment in the power sector leads investment in other sectors of the economy, such that there will always be sufficient power available for investors in any industry, without the need to resort to future load shedding as a way of rationing demand."

He noted that for Zambia to achieve the middle income national status, it is necessary for private and public partnerships to work together and invest in the power sector.

Some Project Statistics:

  • Project site river catchment area – 2300km²
  • Mean river flows: 1.8m³/s to 18m³/s
  • Water level height variation: 20m (between wet and dry seasons)
  • Proposed dam height: 65m
  • About 4km of tunnel
  • Estimated capacity: between 34MW and 50MW power station
  • Estimated year of commissioning: 2014
  • Estimated overall implementation period: 70 months

CEC PLCCEC PLC
Hanson Sindowe
Executive Chairman
Copperbelt Energy Corporation PLC
Raman Dhawan
Managing Director
Tata Africa Holdings (PTY)

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