adminEnergy and Power Development Minister Elton Mangoma said tenders for exploration of the project had already gone out.
“Tenders have already gone out for quantification of gas in Lupane for the gas project and preliminary indications show that the project can be a success.
“We anticipate temporary generation to begin next year in Lupane,” he said.
He said this during the ZimBuild Infrastructure Financing Conference on Wednesday.
The Government expects the quantification process to be completed by January next year, paving the way for developments in respect of full implementation of the project.
A ZPC official recently said work on development of the Lupane gas project was 10 percent complete.
The Lupane Gas Project, granted National Project Status by Government in 2007, has the potential to ease Zimbabwe’s power woes.
Zimbabwe is currently facing electricity shortages, generating around 1 200 megawatts (MW) against the peak period national demand of about 2 200MW.
In its bid to boost power output Minister Mangoma added that the State will soon be setting up a 100 MW solar plant in Gwanda, as well as signing a Memorandum of Understanding with the Chinese for the development of a 1 000MW coal plant.
“We are currently looking for an investor in the solar project and to the extent that negotiations are completed soon, the project should be completed by July next year,” he said.
“We have also signed an MoU with the Chinese for a 1 000MW coal plant,” he said.
The minister said these infrastructure initiatives were part of the Government’s commitment to meet energy requirements able to sustain a $100 billion economy.
Funding of these projects will receive further impetus as the Infrastructure Development Bank of Zimbabwe (IDBZ) has said it will soon launch a bond issue to raise $30 million for energy projects, according to its acting director Mr Alex Machimbirike.
“We will soon be going onto the market to raise $30 million through a bond issue, monies which will go towards energy projects,” he said.
He however did not give any timeline for the issuance. The $30 million bond issue will mark the first phase of the IDBZ’s implementation of its mandate to raise $50 million worth of Infrastructure Development Bonds.
Early this year Finance Minister Tendai Biti said Treasury had mandated the IDBZ to issue $50 million worth of Infrastructure Development Bonds to complement this year’s budgetary allocations for infrastructure refurbishment.
Initial indications from Treasury indicate that the bonds will have a five-year tenor, 10 percent interest rate per annum, Government guarantee, prescribed asset status, liquid asset status, half-yearly coupons, tax exemption, tradability, and lender of last resort security status.
It is also expected that the issuance of the infrastructure bonds will help boost efforts to revive the country’s interbank market.
Mr Machimbirike said the $30 million would be an addition to the $58 million that the financier has so far spent on the refurbishment of energy infrastructure, but lamented the institution’s limited capacity to raise funds.
“We have very limited capacity to raise funds outside of what we receive from Treasury,” he said.
This could largely be due to the country’s high-risk rating.
Online Reporter