China’s Sinohydro has halted works on the Kafue Gorge hydroelectric dam, citing difficulties beyond its control.
The hydroelectric site has been operational since 2015, employing than 5,000 people both directly and indirectly.
The construction of the Kafue Gorge dam and hydroelectric power plant is one of the major energy projects underway in Zambia, even as the country struggles to boost its power production and reduce its dependence on neighbouring countries for its electricity supply
The project, whose commissioning had initially been set for 2020, was being implemented through a public-private partnership (PPP) signed between the government, and Zambia Electricity Supply Corporation (Zesco).
The project, whose total cost of implementation was approximated at $2 billion, is being financed by the Zambian government and foreign financial institutions including the Exim Bank of China.
The government allocated an initial investment of $186 million for the project.
If complete, the Kafue Gorge hydroelectric power station will be able to supply 750 MW of power.
Zambia currently has an installed capacity of 1,948MW although it has a potential to produce approximately 6,000MW of hydro power. Just 25% of the country’s population has access to electricity.
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