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(HERALD) Zimbabwe, Zambia to meet over Batoka project

Zimbabwe, Zambia to meet over Batoka project
Wednesday, 11 January 2012 00:00
Tawanda Musarurwa Business Reporter

THE Batoka hydropower project could soon become a reality as Zimbabwean and Zambian energy ministers are due to meet later this month to formalise the start of the project. Zimbabwe has in recent years been plagued by crippling energy shortages. The Batoka project is among long-term projects with the potential to increase power output.

According to reports in the Zambian media, the two countries' energy ministers are scheduled to meet in Siavonga, Zambia, for a second round of talks on January 22-23.

The meeting comes after a recent visit to Zambia by Energy and Power Development Minister Elton Mangoma.

The Zimbabwean Government recently agreed to settle the outstanding US$70 million asset debt owed to Zambia, paving the way for the delayed construction of the 1650-megawatt Batoka hydropower station.

The debt was for the shared cost of the Kariba Dam construction and the associated infrastructure. It also involved the sale of the Central African Power Corporation (Capco) assets which both countries owned as members of the Federation of Rhodesia and Nyasaland, which was dissolved in 1963.

But Zimbabwe may have to pay more than the US$70 million, the principal sum.

Zambian Energy Minister Christopher Yaluma said the money owed to his country has since accrued interest, which he could not disclose.

"The total principal debt is US$70,8 million, but it has over the years accrued interest," he said.

"I met with my counterpart from Zimbabwe recently who indicated that they were ready to pay off the debt."

The Batoka hydropower station project was jointly mooted in 1993 but the Zambian government was reluctant to undertake the project because of the outstanding debt owed by Zimbabwe.

The agreement by Zimbabwe to pay the debt would now pave the way for the construction of the strategic project located below the Victoria Falls.

Zambia has now agreed to co-operate in the construction process, which will in- crease power generation capacity for both countries.

Meanwhile, Zimbabwe is currently working on some medium-term projects at its Hwange and Kariba power stations that are expected to add an additional 800 megawatts to the national grid by 2015.

Labels: ENERGY, HYDRO POWER, ZAMBIA, ZIMBABWE

posted by MrK @ 7:46 PM