Maravi

(NEWZIMBABWE) RioZim mulls US$3bil power project

RioZim mulls US$3bil power project
by Business reporter
19/05/2010 00:00:00

MINING firm Rio Zim says it has secured the support of South African investors for the construction of a US$3 billion thermal power plant which is expected to go a long way in helping address the country’s power supply problems.

Rio Zim - which is listed on the Zimbabwe Stock Exchange (ZSE) - sits on 1.3 billion tonnes reserves of coal in the country’s Gokwe area where it jointly owns the Sengwa Colliery with Rio Tinto PLC.

Managing director Josphat Sanchikonye said on Tuesday feasibility studies into the power project were already underway but noted that prospective investors had raised concerns over the country’s new empowerment regulations.

Sachikonye said the power station would have a capacity of 1400 megawatts, enough to meet Zimbabwe's electricity demand which is currently 35 percent met by imports.

''A consortium of South African companies is keen to partner us to operationalise the project. All that is left is for the government to make sure the rules are favourable to guarantee investment security to our partners,'' he said.

Sanchikonye said construction of the power plant was tentatively pencilled to start next year, with the first units expected to begin generating electricity by 2014.

The company completed feasibility studies for what was to be the Gokwe North Power Station in 1997 but implementation of the project was put on hold in 1999 due to funding constraints.

At the moment, Zimbabwe suffers severe power shortages, and has resorted to rationing supplies to both domestic and commercial users.

The country imports power from Mozambique, the DR Congo, South Africa as well as Zambia.

Labels: ENERGY, JOSPHAT SANCHIKONYE, RIOZIM

posted by MrK @ 6:19 PM