Batoka power project gets $6m

Batoka power project gets $6m
Published: 05 December 2013
ZAMBEZI River Authority (ZRA), a company which manages the water resources of the Zambezi River on behalf  of Zimbabwe and Zambia, has secured $6 million from the World Bank for the updating of feasibility studies for the proposed Batoka Gorge Hydro-electric power station.

The proposed run-of-the-river power plant that will be constructed some 54 kilometres downstream from Victoria Falls on the Zambezi River will alleviate power shortages in Zimbabwe and Zambia.

ZRA's public relations and communications manager, Elizabeth Karonga said ZRA would next week announce the winning bidder to update the feasibility studies. Work would start in February 2014.

"Yes, the $6 million funding required for the updating of the feasibility study has been secured from the World Bank," she said in a telephone interview from her base in Lusaka, Zambia.

"We will evaluate the bids submitted by the six shortlisted companies and the winning bidder is expected to be announced next week and work will start in February next year."

ZRA is also evaluating the bids for six shortlisted consultants for the Environmental Social Impact Assessment (ESIA). It is also evaluating bids submitted by shortlisted transaction advisors.

The company said only after the above processes have been completed would it inform those who expressed interest to develop the Batoka project on a Build, Operate and Transfer (BOT) basis.

The companies involved were 26 and have since been ranked but not yet informed about the results.

ZRA said this is mainly because they still wanted to update the feasibility studies and also carry out the ESIA.

The $2,5 billion Batoka project is expected to generate 1 600 megawatts (MW) of electricity to be shared equally between Zimbabwe and Zambia.

The hydro-electric power plant would be the second power project to electrify the two countries after Kariba's hydro-electric power plant.

Preparations for the construction of a dam which would facilitate the setting up of a hydro-electric power station have reached an advanced stage.

The access road linking the Zambezi River gorges and the Bulawayo- Victoria Falls highway has been completed.

Work on the Batoka North access road, on the Zambian side is still ongoing and is expected to be complete soon.

The contractors are said to be left with less than two kilometres to reach the construction site.

The development signals the first serious step by the two southern Africa countries in 20 years to roll out the Batoka project on the Zambezi River.

The Batoka project has been on the cards for some years but could not take off due to financial constraints.

Plans for the project were initially mooted in 1993.

The feasibility study undertaken by the Batoka Joint Venture Consultants established the Batoka as the most economically viable option for the immediate development, primarily because it has the lowest specific generation cost and minimal negative environment impact.

However, the Zambian government was reluctant because of the outstanding debt which it wanted Zimbabwe to clear first.

The debt was for Central African Power Company assets that had been shared between Zimbabwe and Zambia after its dissolution.

The agreement to construct Batoka was dependent on Zimbabwe's commitment to pay off the debt it owed Zambia.

The Zimbabwe government, recently agreed to pay off the $70 million debt, paving way for the commencement of the Batoka project which would be 50 km long.
- fingaz
Tags: Batoka,

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