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Zesco has signed a Power Purchase Agreement (PPA) with Integrated Clean Energy Power Company Ltd (CiEG) to produce 2,400 Megawatts of renewable energy estimated at a cost of US$3.5 billion.
CiEG is an investment development and Mergers and Acquisitions (M&A) of international projects arm for China Huadian Corporation, which is a global energy company and Chinese state-owned enterprise, the 3rd largest electricity power producer in the world and is listed on Fortune 500.
Read more: Relief for homes, industries, as ZESCO announces end to load shedding
In a statement, State House Chief Communications Specialist, Clayson Hamasaka, said the pledged US $3.5 billion investment will be rolled out in phases of 600-800MW over a three year period in four provinces beginning this year with 300MW in Southern Province and 300 MW in Central Province.
Picture courtesy of State House Media
Hamasaka said this sizable Foriegn Direct Investment (FDI) into Zambia from China is a testament of the reset and enhanced relations between the two countries for mutual benefit, which dates back to the two founding fathers; Chairman Mao and Dr. Kenneth Kaunda.
He said the pledged investment comes at the back of the earlier investment of US$2.5 billion in 2,000 MW of energy by Masdar from the United Arab Emirates.
Pictures courtesy of State House media
“This signifies the New Dawn’s Government’s strong resolve to achieve energy sufficiency for the domestic economy and energy surplus to enable increased exports as part of promoting export diversification and enhanced foreign currency earnings,” he said.
Contributed by Augustine Sichula
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