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Business Reporter
Government has finally awarded Sino Hydro a $1,1 billion tender for the expansion of Hwange Power Station after the winning bidder China Machinery Engineering Company failed to demonstrate financial capability to undertake the project.
Energy and Power Development Minister Dzikamayi Mavhaire said in a statement that CMEC failed to start the project within the stipulated time.
CMEC won the contract ahead of Sino Hydro which had tendered a bid price of $1,1 billion.
“CMEC, however, failed to conclude the contract within the stipulated time frame that they had agreed upon with Zimbabwe Power Company and the Government; hence the tender was cancelled in May 2014. Government through the Ministry of Energy and Power Development has therefore directed that the tender be awarded to Sino Hydro. They were the second highest bidders for the project,” he said.
The expansion of Hwange Power Station is expected to add 600 MW onto the national grid which will go a long way to alleviate the electricity shortages that have worsened during winter.
Zimbabwe is battling to ease power shortages with electricity generation lower than demand. The country produces about 1,200 megawatts against demand at peak periods of 2,200MW and also imports an average 300MW from Mozambique.
Minister Mavhaire said Hwange Power Station project is one of Government’s major priorities to ease power shortages. Sino Hydro is also working on the expansion of Kariba Hydro Power Station in a deal worth about $360 million.
The project is already underway. Two other Chinese companies — China Jiangxi Corporation and ZTE Corporation — are among three companies that recently won tenders to build 100-megawatt solar plants in Gwanda at a cost of $184 million each.
Online Reporter