The Zimbabwean government has approved a US$1 billion loan facility from the Exim Bank of China, facilitating work to commence on the Hwange Power Project.
The project is one of the numerous mega deals signed between Zimbabwe and China which demonstrates that nation’s dedication to doing business with Harare.
The press reported that the permitted loan is estimated to be paid back over a 20-year phase with a grace interlude of seven years at an interest rate of 2% per annum.
The loan has also a commitment fee of 0, 25% per annum on the undrawn amount and management fee of the same percentage.
Hwange Power Project forms part of Zim-Asset
Minister Patrick Chinamasa said the project showed that government attached significance to the development of chief infrastructure in the nation, as well as energy.
The minister said the power project was being executed by Sino-Hydro Corporation Limited of China as the contractor.
“A special-purpose vehicle has been formed to supervise the project development – Hwange Electricity Supply Company (HESCo) – a partnership between Zimbabwe Power Company (ZPC) and Sino-Hydro Corporation,” he clarifies.
The minister stated that the expansion of the two power generation units, would supply an extra 600MW of power to the national grid, in adding up to 920MW, giving a collective figure of 1,520MW.
