Zim-Fund project unveils US$35m for power sector

promoting donor co-ordination in Zimbabwe.
Its initial focus is on infrastructure investments, rehabilitation and/or construction in the areas of water and sanitation and energy.
Contributors to the fund include Australia, Den­mark, Germany, Norway, Sweden and the United King­dom while the African Development Bank (AfDB) manages it on behalf of the donors.
Addressing the second Zimbabwe International Energy and Power Conference and Exhibition, Zim-Fund manager Mr Emmanuel Nzabanita said work on projects under the first phase would commence early next year.
He said some of the money would be used to rehabil­itate the ash plant at Hwange thermal power station while part of it would be used to rehabilitate sub-trans­mission and distribution facilities in the country.
“These projects are at procurement stage and con­tracts should be concluded by end of December for the works to begin in January 2013,” he said.
Meanwhile, Mr Nzabanita said they were also now considering projects to be financed under the second phase of the Zim-Fund.
“At least US$26 million has been allocated for this phase.
“Beyond this a pipeline of new projects is being developed with the view of focusing on those areas that have a pro-poor focus and will support water and sani­tation and energy,” he said.
Zimbabwe has been facing acute power shortages since the turn of the millennium generating slightly above 1 000 megawatts of electricity against a demand of over 2 000 megawatts, leaving a shortfall which has to be imported.
The power deficit has impacted negatively on efforts to improve industrial capacity utilisation, which is slightly above 50 percent.
However, to remedy the situation, the country is undertaking various projects to boost generation capacity which include expansion of Hwange and Kariba south power plants while a number of Indepen­dent Power Producers (IPP’s) have been licensed as well. — New Ziana.