The implementation of the US$223 million Zimbabwe, Zambia, Botswana and Namibia (ZIZABONA) project is expected to start next year with most of the preparation almost done, says Southern African Power Pool (SAPP).
The project’s initial capacity of the transmission interconnector will be 300 megawatts (MW) and will later be increased to 600 MW.
According to a presentation made at the SADC regional infrastructure investment conference in Mozambique recently by SAPP, the development of an electricity transmission interconnector will link the four countries.
“The construction of the ZIZABONA project will commence in January, 2014 to 2015. All-in project funding requirement includes contingencies , other project costs, financing-related costs, insurance and working capital estimated at US$223 million.
|Fast facts about ZIZABONA:|
|ZIZABONA||Zimbabwe, Zambia, Botswana, Namibia|
|ZIZABONA project||Will increase power trading among participating utilities, as well as provide an alternative route and help decongest the existing central transmission corridor.|
|Initial power||300 MW|
|Construction to commence||January 2014|
|Commercial operation expected to start||January 2016|
With an assumed debt to equity ratio of 70 to 30, the project is envisaged financed by US$67 million and US$156 million debt,” reads the report.
The report says the commercial operation of the project is expected to start in January 2016 to 2017 and the four utilities will take 20 percent each of the equity.
It says the project will increase power trading among participating utilities, as well as provide an alternative route and help decongest the existing central transmission corridor that currently passes through Zimbabwe.
The project is expected to be implemented in two phases; the first phase will cover the construction of a 120-kilometer 330 kilovolt line (kV) from Hwange Power Station to Victoria Falls, where a switching station will be built on the Zimbabwe side. The line will extend to a substation in Livingstone and the second phase will involve the construction of a 300-kilometre 330kV line from Livingstone to Katima Mulilo in Namibia, through Pandamatenga in Botswana.
The Zimbabwe-Zambia interconnector will be built as a high voltage line with a transmission capacity of 430kV.
However, it will operate as a 330kV line during the first phase.
Under the ZIZABONA agreement signed in 2008, all four countries’ respective power utilities namely the Zimbabwe Electricity Supply Authority (ZESA), ZESCO, Botswana Power Corporation (BPC) and Namibia Power Company (NamPower) are expected to finance parts of the project that fall within their national boundaries. The initial capacity of the transmission interconnector will be 300 MW, which will be later increased to 600MW.
Date: 16 July 2013