Zimbabwe struggles to meet China's bailout conditions

Zimbabwe has failed to meet conditions for access to a US$1,17 billion loan facility from the Export-Import Bank of China for the expansion of Hwange Power Station, the country's largest coal-fired plant, it has emerged.

ZESA Holdings group chief executive officer, Josh Chifamba, told Parliament about a fortnight ago that this could result in the project taking longer than initially expected to commence.

He said Zimbabwe has fulfilled only four of the 15 conditions put in place by the Chinese for the release of the loan.

Government expected financial closure before the end of the year, but the slow pace in meeting the stringent conditions might delay the project.

The project, to be undertaken by a Chinese contractor, Sino Hydro Corporation at a cost of US$1,5 billion, would see the power station adding two more units to give a combined generation capacity of 600 megawatts (MW).

It had been expected that the project would be completed within 42 months.