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Zimbabwe Power Company signs MOU with Hatch Africa Energy

by Byo24News
04 Apr 2011 at 05:24hrs | Views
The Zimbabwe Power Company has signed a memorandum of understanding with Hatch Africa Energy, a South African firm for the provision of consultancy services for Hwange and Kariba South extension projects to boost electricity availability to the national grid.
According to the provisions of the Memorandum Of Understanding, Hatch Africa Energy - through its local representative firm the Zimbabwe Africa Infrastructure Development Group - will carry out the expansion roadmap of the two power stations in three phases. In the first phase, which has an immediate take off cost of US$300 000 (Hwange 7&8) and US$400 000 for Kariba (7&8), feasibility studies to establish the possible cost effective generation capacities of the two projects in comparison with other power models will be done.
However, payment for each phase will be done on a tollgate basis, implying that the actual cost of each phase would be determined at the end.
However, Hwange 7&8 has a capacity to generate 600MW while Kariba 7&8 has a capacity of 300MW.
The first phase is anticipated to be completed within three months from the date of the signing of the MoU.
Engineer Richard Maasdorp, the ZPC Board Chairman impressed on Hatch that adherence to prescribed periods of the projects is key and he asked the consultants to bind themselves to the expectations of the client .
The second phase of the projects encompasses plant specification as well as invitation of bids to execute the works in line with Hatch's recommendations. The process that will be finalised in the subsequent three months after finalisation of the first phase.
The scope of works of the third and final phase will depend on the progress and outcomes of the first and second phases respectively but all the works are expected to be finalised within a period of nine months.
Engineer Tanda Chisi, The Technicals Services Director said the company has taken a position to enlist the services of Hatch as it had a technically acceptable bid.
The roadmap for the development of Hwange and Kariba 7&8 is taking place at a time ZPC is in overdrive to streamline its operations through privatisation that will be completed within a year.
An increase in generation capacity implies that it would remain a major player in the electricity generation business.
Government has licensed six Independent Power Producers with Riozim being a major competitor with a programme to invest in a project with a capacity output of 2 400MW.

Source - Byo24News