ITHEZI-THEZI HYDROPOWER GENERATION

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The project involve the construction of a 120 MW Itezhi-tezhi Hydropower Station, comprising of (i) two 60 MW generating units and various ancillary infrastructure necessary for the maintenance of the Hydroelectric Power Station extension.; with a view to increase hydropower generation capacity. The Itezhi-Tezhi dam is located on the Kafue River in the western part of Zambia, some 330 Km from the capital, Lusaka.

The Ithezi-Thezi Hydropower Generation Project will increase hydropower generating capacity and creating a common market for electricity in the SADC region. This is expected to lead to increased economic growth and economic integration among SADC countries through the sharing of infrastructure facilities.

Project financing

In June of 2008 NEPAD-IPPF approved a grant amount of USD 600,000, which will be used to finance the transaction advisory services. This was part of a consortium of financing totalling USD 2.9 million, with remaining contributions from Development Bank of Southern Africa (DBSA) 10%; KfW 30% and ZESCO 40%.
The necessary feasibility studies have been executed and finalised and the project has reached the end of the project cycle and has submitted at the stage of submitting IPPF Project completion report. The estimated project cost is USD 363.9 million, and the following consortium of financers is expected to participate: AfDB, EIB, AFD, TATA and ZESCO. The project is a Public Private Partnership (PPP) and is in the early stages of implementation.

Impact

The project will help address problems of load shedding due to issues related to power generation. The project is also expected to create at least 460 direct jobs for the local population. Benefits expected from the project include clean water and sewerage facilities and reliable electricity service for the local population.