The Southern Africa Development Community’s (SADC’s) Project Preparation and Development Facility (PPDF) – managed by the Development Bank of Southern Africa (DBSA) – on Monday approved $3.5-million towards the development of the multicountry regional interconnector transmission line project.
As part of the first allocation of preparation funding, the project would benefit Mozambique, Zimbabwe and South Africa (MoZiSA), the focus point of the project.
“This is a historic milestone for the PPDF since its inception and signifies the progress towards attaining its mandate, [which is to] create a conducive environment for investment through financing the preparation of infrastructure projects based in at least one SADC member State or those with a direct and positive impact on another member State,” DBSA CE Patrick Dlamini said in statement.
The MoZiSA project comprised the development, construction and operation of a 400 kV or 500 kV high-voltage transmission system, over a distance of about 935 km, including transmission lines and associated substations through the involved countries, with a view to facilitate the strengthening of the existing north–south transmission interconnection corridor in Southern Africa.
The project was sponsored by the member countries’ national power utilities, including Electricidade de Moçambique, Zimbabwe Electricity Supply Authority and Eskom.
The region’s Southern African Power Pool (SAPP), which was the recipient of the $3.5-million preparation funding, represented the sponsors. The funds for this phase would be used for the appointment of a transaction adviser to assist SAPP to execute the development phase of the project.
The delivery outputs of the transaction adviser would be to develop the project scoping study, complete the bankable feasibility study, as well as finalise the project information memorandum to financial close. This was expected to be completed by April 2017.
“Of importance, the long-term added benefits of the project would be the alleviation of Eskom’s power supply deficit through the introduction of an alternative transmission route to transmit up to 1 000 MW of power from Hydro Cahora Bassa, in Mozambique, to the SAPP electricity grid, thereby relieving major constraints that South Africa is currently experiencing,” said SAPP coordination centre manager Dr Lawrence Musaba.