Saturday, February 06, 2010

Zambia partners with Tanzania, Kenya over 400 MW power line

Zambia partners with Tanzania, Kenya over 400 MW power line
By Mutale Kapekele
Fri 05 Feb. 2010, 04:00 CAT

ZAMBIA, Tanzania and Kenya will next year start work on a 400 MW power line, four years after the project that is aimed at boosting trade in electricity among the three countries and ensure security of supply was announced.

Ministry of Energy and Water Development permanent secretary Teddy Kasonso said officials in the three countries were preparing formal proposals for funders and donors for the project, which would begin in the first quarter of next year.

Kasonso said other energy ministers from Kenya and Tanzania had been authorised to sign the Heads of States Agreement and letters of introduction to formally present the project to potential lenders and donors.

He said commissioning of the inter-connector, initially planned for next year, had now been pushed to 2014 due to delays caused by slow government approval procedures in Kenya and Tanzania.

Kasonso said letters to potential lenders and Western donors, which were initially drafted in 2007, also needed to be revised, taking into account the new requirements.

"Our current estimates, which will need revising, are that this project will cost in the region of US $860 million," he said.

The project would enhance trade in electricity between the Southern African Power Pool (SAPP) and the East African Power Pool (EAPP), which includes Ethiopia and Sudan.

"The project may also benefit the three countries by carrying a fibre optic cable thereby opening up an information highway," Kasonso said. “It will also help in addressing the problem of power shortage which has been precipitated by the high demand for power in Africa due to increased economic activities.”

Kasonso said the project company and project management unit with staff drawn from all the three countries Zambia, Tanzania and Kenya would be established in Lusaka this year.

The 400 Mega Watts (MW) of power line would run from a sub-station in central Zambia through Kasama in the Northern Province to Mbeya and then Arusha in Tanzania en route to Nairobi.

Kasonso said the project would encourage investment in new hydropower generation projects in Zambia because surplus power could be exported to east Africa.

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