News / Local
Bulawayo Power Station upgrade to take 3 years
06 Nov 2015 at 05:40hrs | Views
THE government has signed an $87 million Credit Line Agreement with the Export-Import Bank of India for the upgrading of the Bulawayo Thermal Power Station in a project that is expected to be completed in three years.
The Minister of Finance and Economic Development, Patrick Chinamasa, said he signed the agreement with the bank's Chairman and Managing Director, Yaduvendra Mathur in New Delhi, India on Tuesday last week.
The minister said the $87 million facility was in pursuit of the country's Look East Policy and was one of the fruits of the government's accelerated re-engagement with the BRICS countries, a grouping of developing or newly industrialised countries: Brazil, Russia, India, China and South Africa.
In a statement released on Wednesday, Chinamasa said the loan has a repayment period of 10 years, a three-year grace period and an interest rate of two percent per annum.
"The rehabilitation of Bulawayo Power station will contribute an additional 70 megawatts (MW) to our national grid from the current 30MW. The project will consequently assist in reducing the current power deficit which stands at 1,500 MW in the circumstances of depressed demand.
"This plant will replace the now worn out and inefficient plant and will introduce more advanced technology which certainly will help drive down costs," said Chinamasa.
"The project construction works will give an opportunity for local labour and local businesses to supply those inputs which are sourced locally in Zimbabwe and further, we anticipate downstream employment opportunities in the coal industry and transport industry."
The Minister of Finance and Economic Development, Patrick Chinamasa, said he signed the agreement with the bank's Chairman and Managing Director, Yaduvendra Mathur in New Delhi, India on Tuesday last week.
The minister said the $87 million facility was in pursuit of the country's Look East Policy and was one of the fruits of the government's accelerated re-engagement with the BRICS countries, a grouping of developing or newly industrialised countries: Brazil, Russia, India, China and South Africa.
In a statement released on Wednesday, Chinamasa said the loan has a repayment period of 10 years, a three-year grace period and an interest rate of two percent per annum.
"The rehabilitation of Bulawayo Power station will contribute an additional 70 megawatts (MW) to our national grid from the current 30MW. The project will consequently assist in reducing the current power deficit which stands at 1,500 MW in the circumstances of depressed demand.
"This plant will replace the now worn out and inefficient plant and will introduce more advanced technology which certainly will help drive down costs," said Chinamasa.
"The project construction works will give an opportunity for local labour and local businesses to supply those inputs which are sourced locally in Zimbabwe and further, we anticipate downstream employment opportunities in the coal industry and transport industry."
Source - chronicle
