European Investment Bank to provide EUR50m funding for 120MW hydropower plant in Zambia
The European Investment Bank will provide €50m to Zambia electricity supply corporation (ZESCO) for the construction a 120MW hydropower plant in the country.
Itezhi-Tezhi Power will develop the plant at the existing Itezhi-Tezhi Dam besides undertaking the construction of a 291km transmission line to Lusaka that will connect the power station to the national grid and the Southern African Power Pool.
Commenting on the project European Investment Bank vice president responsible for lending in sub-Saharan Africa Pim van Ballekom remarked that the increased renewable energy generation will also reduce the cost of importing fossil fuels for the country.
"The European Investment Bank recognises the detrimental economic impact of power shortages in the region and is committed to supporting long-term investment in key energy infrastructure across Africa.
"The impressive Itezhi-Tezhi project complements the European Investment Bank's support for upgrading the Kafue Livingstone transmission line provided earlier this year," added Ballekom
Additional financing for the $375m project will be provided by the French Development Agency, African Development Bank, Development Bank of Southern Africa, Republic of Zambia, the Tata group, the Government of India amongst others.
The project is scheduled to be completed by 2015 and is owned by ZESCO and the Tata Group of India - each having a share of 50%.