Standard Bank has finalised a $120-million debt package with Zimbabwe Power Company (ZPC) for the rehabilitation of existing power infrastructure at the Kariba South hydropower station and the Hwange thermal power station.
The transaction is a continuation of a previous funding arrangement with ZPC, which went towards the 300 MW expansion of the Kariba South hydropower station.
“This funding will assist in improving access to power for Zimbabwe and Namibia and, in the medium to long term, benefits of improved power supply and reliability will also extend to other Southern African Power Pool members,” Standard Bank investment regional head Tandiwe Njobe said in a statement on Tuesday.
She added that the funds would be used to increase capacity and improve the efficiency of the power stations.
“This is a landmark transaction in which we could leverage our sector and technical expertise in both markets, as well as our understanding of the regional power dynamics and local regulatory environments, to deliver value to ZPC and Namibia Power Corporation, (NamPower),” Njobe noted.
The facility is cross border, placing reliance for repayment on a long-term power purchase agreement between ZPC and NamPower.