Maravi

Indian firm to open power plant in Zambia

Indian firm to open power plant in Zambia
By Masuzyo Chakwe
Saturday July 26, 2008 [11:01]

AN Indian company is set to open a thermo-power plant in Zambia worth US$1.8 billion with a capacity to generate 1,000 mega watts. And energy minister, Kenneth Konga said Indeni Oil Refinery will shut down for maintenance in September. Speaking when he paid a courtesy call on Vice-President Rupiah Banda at his office yesterday, Era Group of Companies senior vice-president, Sanjay Bhatia, said prospecting could start at the end of September.

He said Era Group of Companies, worth US$1.5 billion, planned to invest into the power and agriculture sectors.

Bhatia said the company had the technology and expertise to bring investment in Zambia in a very big way.
He said the company hoped to finalise the licence for investment in the next visit to Zambia.

"The power plant will take two years because it is a huge investment, which is about US$1.8 billion which consists of exploration, prospecting of coal, mining of coal and setting up of the power plant. The power plant capacity is 250 mega watts in the southern region but it all depends on the availability of coal. What kind of coal deposits are there," he said. "When we get the coal we will start with 250 mega watts units so we can get on line immediately.

Once the power plant is established, the economy of that region will be improved. We plan to build a special economic zone, a multi-purpose economic zone which will have continued power. This will bring Zambia into the map globally."
He said the company needed government support to ensure that things moved at a very fast pace.

Bhatia also disclosed that the company was ready to start a rice plantation once they identified land where they hoped to create employment opportunities for the locals.

Era Group of Companies director Ajay Mishra said the investment opportunities in Zambia were very promising.
Vice-President Banda said Zambia would like to take advantage of India's dynamic ability.
Commerce minister, Felix Mutati said through the Ministry of Mines, they were able to secure concession in Southern Province for the coal reserve.

Konga said this investment would definitely boost the energy sector that would drive the economy forward especially the mining activities on the Copperbelt.

Konga also said the electricity tariffs in Zambia were not economical and would have to be adjusted upwards.
He also said the government's negotiating team was still talking to the Zanaco negotiating team.

"We have given deadlines that I think by the end of this month, negotiations can conclude because we can't have negotiations that keep going on so that we get a financier in place. I am yet to get report on how far the negotiation is going," he said.

Konga also assured the nation that there was enough fuel.

Labels: ENERGY, INDENI, INDIA, INVESTMENT, KENNETH KONGA

posted by MrK @ 2:21 PM