Bulawayo Thermal Power Station rehab begins next year

THE upgrading of the Bulawayo Thermal Power Station is set to commence next year with about $30 million to be injected towards the project by the India Export Import Bank.

Towards the end of last year, India Exim Bank extended a loan facility amounting to $87 million for the re-powering of the plant.

In the 2017 national budget he presented last Thursday, Finance and Economic Development Minister Patrick Chinamasa said: "Upgrading of Bulawayo Thermal Power plant will commence in 2017 with funding of $30 million from India Exim Bank.

"These resources will meet mobilisation costs, as well as design and procurement of equipment."

The minister said an additional $4 million from the budget will cover project development costs.

The India EximBank loan has a tenure of 13 years, a grace period of three years and a repayment period of 10 years at two percent interest rate per annum.

It is hoped that rehabilitation of Bulawayo Thermal Power Station will help mitigate the country's power shortage and in turn boost industrial production.

The power plant, which was built in 1957, has an installed capacity of 120 megawatts.

As of last Friday, the Zimbabwe Power Company indicated that Bulawayo Power Station's output was at zero due to a technical fault.

Of late, Zimbabwe's power stations have continued to experience subdued generation owing to constant technical faults on equipment due to old age.

Minister Chinamasa indicated that the Zimbabwe Electricity Transmission and Distribution Company would next year invest $45.6 million of own resources towards procurement of transformers and other accessories.

The move is aimed at improving efficiency with regards to transmission and distribution of electricity in the country.

"Extension of the electricity grid to new settlements will be funded at a cost of $29.5 million, while $13.4 million will be for development costs for the Alaska–Karoi transmission line.

"In addition, the Zim-Fund Phase II of the Emergency Power Rehabilitation Project will avail $9.1 million towards procurement and installation of grid transformers for the Marvel and Chatsey transmission line, $5.6 million; rehabilitation of the Prince Edward sub-Station, $2.6 million; and the Orange Groove–Sherwood transmission line, $0.9 million," he said.

Other projects prioritised for implementation in 2017 are $36.9 million for procurement of prepaid meters for 44 000 large consumers and 50 331 ordinary customers under the prepayment system.

About $36.8 million will be extended towards the grid to 450 institutions under the Rural Electrification Fund programme, with a further $0.3 million for construction of 41 stand-alone solar micro-grid plants for identified public institutions.