Name and Location
Itezhi-Tezhi hydropower project, Zambia.

Project Description
The project involves the construction of a 120 MW hydropower station, consisting of two 60 MW units, adjacent to the Itezhi-Tezhi dam, about 260 km south from Lusaka.

The Itezhi-Tezhi dam, built as a storage reservoir for the existing Upper Kafue Gorge hydropower (UKGH) station, is located about 230 km upstream from the station. The proposed plant will be located downstream of the dam.

The reservoir is currently used for seasonal stream flow regulation to serve the requirements of the UKGH power station downstream.The hydropower project will generate power using the head available at the dam, with flow being released or spilled.

The project is also part of Zambia’s planned $2-billion investment in power projects.

Value
The project is estimated to cost $230-million.

About 30% of the project costs will be financed through equity, with each partner contributing 15%, while the balance will be financed through debt.

Duration
Construction is expected to start during 2011, with completion targeted for 2015.

Client
Itezhi-Tezhi Power Corporation (ITPC) joint venture, comprising State-owned power utility Zambia Electricity Supply Corporation (Zesco) and Tata Africa.

Key Contracts and Suppliers
European Investment Bank (EIB), African Development Bank (AfDB) and the Development Bank of Southern Africa (DBSA) (funding).

Latest Developments
The Zambian Ministry of Energy has reported that construction of the Itezhi-Tezhi power plant, which is poised to mitigate the county’s power deficit, will begin this year.

ITPC intends to use funds secured from the EIB, the AfDB and the DBSA, as well as possible financing from the World Bank, to cover costs under a single engineering, procurement and construction turnkey contract for the design and construction of the plant.

On Budget and on Time?
Construction of the plant was initially scheduled to begin in the first quarter of 2010; however, owing to delays in securing funds, as well as the finalisation of a power purchase agreement and other related agreements, construction will now begin in 2011.

Contact Details for Project Information
Tata Africa, tel +27 11 459 1700, fax +27 11 459 1710 or email tata@tataafrica.com.
Zesco, Monica Mulenga Chisela, tel +260 1 22 8084, fax +260 1 22 1342 or email mchisela@zesco.co.zm.