adminTinashe Makichi Business Reporter
China Africa Sunlight Energy (Pvt) Limited will invest $104 million for the construction of a 240km Gwayi-Insukamini 400kva transmission power line which will be connected to the national grid, The Herald Business can reveal.The project is part of a $2,1 billion Gwayi integrated coal-gas-power station project which has since been designated and awarded National Project Status by the Government of Zimbabwe through treasury. All the funding for the project is through private borrowings and is coming from a shareholders loan and Chinese banks such as ChinaExim bank, and China Development Bank which CASE has been engaging.
In addition, the integrated project has been listed as a Zimbabwe Agenda for Sustainable Socio-Economic Transformation priority flagship project by the Ministry of Finance and Economic Development,
“As part of the integrated project, the company will fund the construction of part of the national grid 240km Gwayi-Insukamini 400kva transmission power line for $104 million. In addition, CASE will fund part of the construction of the Gwayi/Shangani Dam (part of Zambezi water project) for $53 million and a water pipeline for $45 million,” said CASE executive board secretary Mr Isaac Chihuri.
Mr Chihuri said under phase 1 of implementation of the projects CASE envisages the construction of an underground coal mine with a capacity to produce 3 million metric tonnes coal mine per annum and the setting up of a 2X300MW coal fired thermal power station and a compressive residential areas all constructed in Gwayi at a total investment cost of $2,1 billion.
This Integrated Project will be done with the latest technology allowing it to be cost effective, highly efficient. It will be the first such highly environmentally friendly project in Zimbabwe.
The power station will include dust removal, desulfurisation and denitration technology and shall be environmentally friendly demonstrating sustainable coal and power production.
“That shall promote Zimbabwe as a flagship country in the Southern African Power Pool,” said Mr Chihuri.
The model for the Gwayi integrated project is a new and innovative business model in Zimbabwe, but has already been used in China.
Mr Chihuri said the project is referred to as integrated because all these component parts are being planned, financed and being implemented together in an integrated fashion.
This project is the largest single investment by a private entity since independence and CASE would be the largest independent power producer in the country.
When fully operational, CASE’s power station will produce a third of Zimbabwe’s power needs and be the third largest power station in the country after Kariba and Hwange. CASE has so far secured 100 000 hectares coal mining and CBM concession from Government.
The company has also secured 600 MegaWatts generation license from Zimbabwe Energy Regulatory Authority and Secured water rights from ZINWA – Gwayi/Shangani Dam.
CASE has completed connection grid impact Assessment with Zimbabwe Electricity Transmission and Distribution Company and completed feasibility studies for the integrated coal electricity project. Exploration of Area A has been completed and results have indicated enough good quality coal reserves.
The company has been granted its mining and power generation EIA certification as well as the processing the conversion of SG into special mining lease concluded and the special mining right has been awarded.
Mining EIA and Power generation EIA certification has been granted. We are processing the Conversion of SG into Special Mining Lease for 25-60 years under the special economic zone model.
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