Zambia eyes two bidders for power project

LUSAKA – Two firms are in the running to construct a new power station in Zambia as part of a US$1,2 billion plan to address looming power shortages, a senior minister said on Tuesday.

Lunsemfwa Hydro Power Co. Ltd and the Olympic Hydro Ltd., through its Lunzuwa Power Authority unit, have submitted bids to construct the Kalungwishi Power Station near the country’s northern border with the Democratic Republic of Congo (DRC), Energy and Water Development Minister Felix Mutati said.”We will be selecting the preferred bidder for the Kalungwishi power project within three months,” Mutati told Reuters in an interview, though he declined to give further details on the firms or their bids.South Africa state utility Eskom owns a majority stake in Lunsemfwa.Mutati said Zambia was prioritising its plan to build power stations to meet rising demand in the country’s copper and cobalt mines and from other countries that consume energy in southern Africa.Copper and cobalt production is Zambia’s economic lifeblood.”Our aim is to fast-track all pending power projects in order to meet rising demands.The copper mines alone require between 50 megawatts to 100 megawatts in additional power every year,” Mutati said.The US$1,2 billion earmarked for Zambia’s energy upgrades will be spent over the next five years on modernising power facilities and constructing new stations, with financing coming from China and Iran as well as other investors.The Kalungwishi power station would have a capacity of between 160 megawatts and 200 megawatts and would cost between US$160 million and US$300 million, including construction of power lines to connect to the national grid.Final output of the plant will be determined by technical changes initiated by the winning bidder, Mutati said.Plans by state power utility Zesco to construct the 300 megawatt Kafue Gorge Lower power station in partnership with Sinohydro of China and the 120 megawatts Itezhi-Tezhi power station with Farab International of Iran also are on track.”Itezhi-Tezhi and Kafue Gorge are coming through very well.Zesco will this month negotiate for the construction of the Kafue (Gorge Lower) and Itezhi-Tezhi power projects, and it’s looking good so far,” Mutati said.Zambia, which has vast power generation and transmission potential owing to its hydro resources, hopes that the private sector will assume the bulk of the construction and financing of the planned power stations.Experts have forecast that southern African will face an electricity shortfall by 2010 due to economic growth in the region, particularly due to increased mining and manufacturing.Zambia exports power to Zimbabwe, Namibia, Botswana and South Africa.Nampa-ReutersLtd and the Olympic Hydro Ltd., through its Lunzuwa Power Authority unit, have submitted bids to construct the Kalungwishi Power Station near the country’s northern border with the Democratic Republic of Congo (DRC), Energy and Water Development Minister Felix Mutati said.”We will be selecting the preferred bidder for the Kalungwishi power project within three months,” Mutati told Reuters in an interview, though he declined to give further details on the firms or their bids.South Africa state utility Eskom owns a majority stake in Lunsemfwa.Mutati said Zambia was prioritising its plan to build power stations to meet rising demand in the country’s copper and cobalt mines and from other countries that consume energy in southern Africa.Copper and cobalt production is Zambia’s economic lifeblood.”Our aim is to fast-track all pending power projects in order to meet rising demands.The copper mines alone require between 50 megawatts to 100 megawatts in additional power every year,” Mutati said.The US$1,2 billion earmarked for Zambia’s energy upgrades will be spent over the next five years on modernising power facilities and constructing new stations, with financing coming from China and Iran as well as other investors.The Kalungwishi power station would have a capacity of between 160 megawatts and 200 megawatts and would cost between US$160 million and US$300 million, including construction of power lines to connect to the national grid.Final output of the plant will be determined by technical changes initiated by the winning bidder, Mutati said.Plans by state power utility Zesco to construct the 300 megawatt Kafue Gorge Lower power station in partnership with Sinohydro of China and the 120 megawatts Itezhi-Tezhi power station with Farab International of Iran also are on track.”Itezhi-Tezhi and Kafue Gorge are coming through very well.Zesco will this month negotiate for the construction of the Kafue (Gorge Lower) and Itezhi-Tezhi power projects, and it’s looking good so far,” Mutati said.Zambia, which has vast power generation and transmission potential owing to its hydro resources, hopes that the private sector will assume the bulk of the construction and financing of the planned power stations.Experts have forecast that southern African will face an electricity shortfall by 2010 due to economic growth in the region, particularly due to increased mining and manufacturing.Zambia exports power to Zimbabwe, Namibia, Botswana and South Africa.Nampa-Reuters