adminEnergy and Power Development permanent secretary Justin Mupamhanga told delegates at the Chamber of Mines conference last week the winner of the contract would be announced next month, with construction scheduled to start in January.
“We anticipate that on the 5th of June, bidders will be submitting their final bids to Zimbabwe Power Company for adjudication,” he said.
Government also shortlisted five contractors for the expansion of Kariba Hydro Power Station, but no dates have been announced for the final bids.
The expansion of Hwange requires US$1,9 billion while Kariba would need about US$600 million.
The expansion of the two power stations would add 900 megawatts to the national grid. Mr Mupamhanga did not disclose the names of the shortlisted firms.
Zesa Holdings is struggling to meet the national power demand, producing an average of about 1 200 megawatts, almost half of the demand.
Zimbabwe’s electricity sector has had no meaningful investment for nearly three decades, which has resulted in frequent breakdowns, especially at Hwange.
Power shortages have triggered load-shedding which has adversely affected productivity in the key economic sectors of agriculture, mining and manufacturing.
Zimbabwe imports additional power from Mozambique, Zambia and the DRC. But due to financial constraints, Zesa cannot import enough electricity to cover the shortfall.
Meanwhile, Zesa has managed to reduce its debt with HCB of Mozambique to US$31 million from US$76 million, after leading platinum miners Zimplats, Mimosa and Unki made pre-payments of about US$35 million.
Last month, HCB had agreed to an uninterrupted power supply deal with Zesa if the power utility paid US$40 million.
Online Reporter