adminCHINA Africa Sunlight Energy needs more than $1 billion for the construction of a thermal power station which will be located at its coal mining concession in the Gwayi area, an official said. China Africa Sunlight Energy deputy general manager Retired Colonel Charles Mugari confirmed that the Environmental Management Agency awarded the company an Environmental Impact Assessment certificate to construct a power station.
He said the construction of the power station would start next month and run concurrently with that of the mine.
The company was issued with a special grant to explore and extract coal bed methane gas and coal three years ago in an area stretching 100 000 hectares.
“We are starting the construction of the mine in July and we expect to complete that in two years. This project will run concurrently with the construction of our power station.
“We are looking at completing the construction of the power station before the end of this year. We are looking at spending $104 million towards building the power grid that will connect to the national grid while the construction of the whole plant will cost $1 billion,” Retired Col Mugari said.
The power station would see the enactment of a 240 kilometre power line from the source to Insukamini as well as a pipeline link from the Gwayi-Shangani dam which is under construction to the plant.
The company has already pledged to contribute $52 million towards the construction of the Gwayi-Shangani dam.
“Our financier is well informed of the amount of investment which is needed for the project. Suffice to say that they are satisfied with the fact that we have been granted an EIA certificate to start construction. To them it’s a clear indication that we are abiding by the laws of the country and that their investment is being put into good use,” Retired Col Mugari said.
Late last year the Export-Import (Exim) Bank of China agreed in principle to bankroll China Africa Sunlight Energy’s multi-billion dollar project which entails coal and coal bed methane gas extraction as well as industrial integrated schemes.
The company’s environmental consultancy firm, Environmental Guardians Services said the awarding of the EIA certificate for the construction of the power station to China Africa Sunlight Energy would go a long way towards improving productivity in industries but hinted that there was need for the company to adhere to the Environmental Management Plan.
“It’s (awarding of an EIA to China Africa Sunlight Energy) a positive development for the nation because it’s going to help industry as it has been adversely affected by power deficits.
“However, the company needs to take into cognisance that the area in which it has been given an EIA certificate there is a need to invest in environmental management through following the Environmental Management Plan enshrined in the EIA report,” said the consultancy firm’s senior consultant, Mr Michael Montana.
For its first phase China Africa Sunlight Energy would contribute 300 megawatts (MW) to the national grid.
Energy and Power Development Minister Dzikamai Mavhaire, said the construction of the Gwayi power station was part of Government’s efforts curb power deficit in the country.
He said Government was initiating a number of projects aimed at harnessing power from various energy sources.
“The issue of power is one of the Government’s goals, by 2017 we must be able to have sufficient power to even export. Power is enshrined in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation as one of the enablers of the economy and it is essential in that we cannot run industry, commerce and the entire economy without it. Thus on the issue of power we must hit the ground running,” Minister Mavhaire said.
He said the country had enough potential to increase its power generation through using hydro, thermal, solar, methane gas and other energy resources that were readily available.
“As a country we never invested much in the construction of power stations but now we have seen their importance in supporting the economy.
“Any investor willing to invest in the country will certainly ask about the availability of energy, water and transport mode thus the issue of power should not be overlooked,” Minister Mavhaire said.
The country’s power output from traditional plants stands at a mere 1 500 MW against a daily demand of 2 000MW.
There are five mini hydro projects under way in the country namely Gaerezi, Ruti, Nyamhingura, Chipendeke and Pungwe which are expected to be complete by 2015.
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