The European Investment Bank (EIB) will offer €50m in financial assistance for the construction of the 120MW Itezhi-Tezhi hydropower project in Zambia.
Located on the Kafue River the project is estimated to entail a total cost of $375m.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Scope of the project includes the hydro plant at the existing Itezhi-Tezhi Dam and a 291km transmission line to Lusaka for connection to the national grid.
Jointly owned by Zambia electricity supply corporation(ZESCO) and the Tata group, the project will be developed by Itezhi-Tezhi Power Corporation, expected to completed by 2015.
Other investors for the Itezhi-Tezhi project include the French Development Agency (AFD), African Development Bank, FMO, PROPARCO, Development Bank of Southern Africa, Republic of Zambia, TATA and the Government of India.
Additionally, the EU-Africa Infrastructure Trust Fund will provide an interest rate subsidy and technical assistance grant for the project
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataEIB vice president Pim van Ballekom, responsible for lending to sub-Saharan Africa, stated that increased clean energy production in Zambia will lower the cost of importing electricity to the country and diminish dependence on coal-generated power.
"The European Investment Bank recognises the detrimental economic impact of power shortages in the region and is committed to supporting long-term investment in key energy infrastructure across Africa," Ballekom said.
European Union Ambassador to Zambia Gilles Hervio added, "The Itezhi-Tezhi Hydropower Project will enhance the generation capacity of electricity on the national grid, as well as increasing the reliability and quality of supply of electricity in Zambia."
