Indian bank finances power station upgrade

The Export-Import Bank of India

(India Exim) has extended a US$87m

line of credit to the Zimbabwean

government for the renovation of the

Bulawayo thermal power plant.

This is Exim’s second loan to

Zimbabwe, taking the total value to

US$115.6m.

The first of US$28.6m was given in

June 2013 for the upgrade of the Deka

pumping station and river water intake

system.

Zimbabwean industry was warned

in January 2016 that there would

be longer and more frequent power

shortages for the next 10 years.

The country’s power utility

will extend blackouts until it can

boost capacity, Patson Mbiriri,

secretary for energy and

power development, is

quoted as telling the

annual congress of

the Confederation of

Zimbabwe Industries.

“By 2022 we will

be able to generate

enough power

for domestic and

industrial use,” Mbiriri said.

Zimbabwe needs about 2 200

megawatts of electricity at peak

consumption but generates just below

1 300 megawatts, while relying on

imports to fill the gap.

According to reports from

Zimbabwe. the country has suffered

blackouts as major electricity suppliers

have cut supplies due to the nonpayment

of dues.

Energy Minister Elton Mangoma

recently said Zimbabwe had whittled

down its debt to power providers to

under

$20 million from around $100 million

in a bid to resume imports.