Maravi

IFC urges enhanced funding to Kafue Gorge Lower project

IFC urges enhanced funding to Kafue Gorge Lower project
Written by Florence Bupe
Friday, January 30, 2009 3:17:30 AM

THE International Finance Corporation (IFC) has called on government to enhance its funding support to the Kafue Gorge Lower hydro power project to make the venture more economically viable.

And the corporation has disclosed that 15 international companies have expressed interest in investing in the power generation project.

Presenting a progress report on the status of the project to government yesterday, IFC senior investment officer for infrastructure advisory Javier Calvo said the project was on schedule but called on government to find ways of making it more bankable.

“The project’s preparatory stage is near completion, and we are on schedule, but we need government support to make the project more bankable,” he said.

He said the role of government through public funding support was very crucial in determining the success of the project.

Calvo said the lending market was currently tight and that it was vital for government to come up with concessionary terms for the development of the project.

He further disclosed that the feasibility exercise was likely to be completed by early next year.

Calvo said IFC had already assessed the project risks and expressed optimism that the project would receive a favourable response.

And Energy permanent secretary Peter Mumba said the government was still committed to the development of cost-reflective electricity rates and would adjust tariffs accordingly in the next few years in order to attract investments in the energy sector.

Mumba also encouraged local companies to bid in the Kafue Gorge Lower project once the tender was advertised.

The Copperbelt Energy Corporation (CEC), in partnership with Swiss mining giant Glencore International AG, planned a joint venture to bid for the development of the US $1.5 million hydro power plant at Kafue Gorge Lower.

Labels: HYDRO POWER, INTERNATIONAL FINANCE CORPORATION, KAFUE

posted by MrK @ 3:17 AM