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Rumbidzayi Zinyuke
Senior Reporter
Zesa Holdings is set to sign two investment agreements valued at US$5 billion with Indian conglomerate, Jindal Steel and Power in a deal that will increase electricity production by 2 000 megawatts over the next few years.
The deal is expected to see the refurbishment of Hwange Units 1 to 6 as well as adding four new units to the power plant.
A delegation from Jindal Steel and Power is in the country and met President Mnangagwa yesterday before travelling to Hwange to assess the plant and sign the two Memorandums of Understanding with Zesa Holdings.
Speaking after the meeting with the President, Zesa executive chairman Dr Sydney Gata said the investment would be one of the biggest in the country and would result in positive growth across all economic sectors.
“We are signing two agreements, one today (Friday), another one tomorrow (Saturday). It will be the biggest single investment this country has ever seen, not just in the power sector, but across the economic spectrum.
“Generally, as a guideline, we are talking about US$4 to US$5 billion of investment. That is a lot, because there is also transmission that comes with it, and mining, so it will be creating a huge number of jobs. So, there is a reason to be excited,” he said.
Dr Gata said this would ensure that the country attains Vision 2030 targets.
He said Jindal Steel and Power was a renowned giant in the energy sector with operations in Botswana and Mozambique.
“They are coming across with a massive investment in baseload capacity, which is what this economy needs so badly.
“Altogether, they will put up 2 000 megawatts of new capacity. 800 MW will be from refurbishing the existing power station, but they are also going to put up four new units at 300 megawatts each, which is twice the capacity of 7 and 8 that we talk about so much. So, an injection of 2 000 megawatts of baseload capacity in our economy would be very transformational,” he said.
Jindal chairman Mr Naveen Jindal expressed his company’s commitment to assisting Zimbabwe become self-sufficient in power generation.
“Zimbabwe has lots of opportunities and the people of Zimbabwe are very hard working. There is a very good work culture here and we are looking at different opportunities. We are looking at refurbishment of the power generation as well as the operationalisation of Hwange Power Station and I hope that we can contribute to the development and progress of Zimbabwe,” he said.
He said work on Units 1 to 6 would start once all modalities were in place.
Hwange Power Station is the largest coal-fired power station in the country with an installed capacity of 1520MW and currently generates the bulk of the country’s electricity needs.
The coming on board of Jindal Steel and Power is poised to significantly alleviate Zimbabwe’s chronic power shortages, which hamper economic growth and development.
“We would like to start at the earliest and contribute to making Zimbabwe self-sufficient in power generation. Electricity is a very important element to improve the quality of life and His Excellency, the President, feels that there should be no shortage of power in the country. There should be enough electricity for all the citizens, all the industries and all the commercial establishments,” Mr Jindal said.
With additional power generation capacity, it is anticipated that key sectors such as mining, agriculture and manufacturing will be bolstered.
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