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Following the government’s facilitation of a more investor-friendly regime to encourage generation and transmission schemes, more independent power projects (IPPs) are expected to emerge in Zambia, several of them supplying the fast-growing mining sector. According to Copperbelt Energy Corporation (CEC) director for strategy and regulation Silvester Hibajene, Zambia will need 1,870MW more generation capacity in the next five years, at an estimated $4bn cost. 



The Kudu gas-to-power scheme is one of a number of strategic projects for which the Southern African Development Community (SADC) has been attempting to drum up investment. Ten energy projects were included in a report detailing progress on selected infrastructure projects in the SADC Regional Infrastructure Development Master Plan Short-Term Action Plan, presented to the SADC-UK 2013 Prosperity Event in London on 13 March. The report was put together from interviews with project managers.

Work is under way to rehabilitate and upgrade the Tazama pipeline, which runs from Dar es Salaam port to the Indeni refinery. The 1,710km pipeline was commissioned in 1968, and the project is replacing damaged sections of pipe, then upgrading the pipeline’s seven pumping stations to increase throughput and raise capacity, as well as upgrading the communications system.

Copper miner First Quantum Minerals Ltd plans to build a $230m transmission line from Lusaka West to Solwezi in North-Western Province to supply its new Sentinel mine at Kalumbila.

The European Investment Bank (EIB) and African Development Bank (AfDB) have signed loan agreements totalling about $120m for the 120MW Itezhi-Tezhi hydro plant and transmission line project on the Kafue River. The AfDB’s loan of $55m was approved by the Bank board in June and signed on 19 December, while the EIB has agreed to provide €50m ($67m).

Economic recovery has given a new impetus to the long-mooted Batoka Gorge hydro project on the Zambezi River, writes Chiwoyu Sinyangwe in Lusaka

Zesco is seeking proposals from consultants for the organisational redesign of the utility. Zesco is looking to restructure in order to rationalise labour utilisation and improve cost efficiency.

State utility Zesco is seeking technical and financial offers to connect North Western province to the national grid. Work will be carried out on an engineering, procurement and construction (EPC) or turnkey basis and must include construction of all of the following transmission lines and substations.

The proceeds from Zambia’s successful debut Eurobond issue will be spent on upgrading energy and transport infrastructure, writes Chiwoyu Sinyangwe in Lusaka.

The World Bank board approved a $60m credit on 15 May to reinforce Zambia’s electricity transmission network and increase Zesco’s power transfer capacity to Kafue town and the Southern Province.

A memorandum of understanding has been signed by the Zambia Development Agency (ZDA) and a Zambian company called Basali Ba Liseli Resources (BBLR) for a $2.5bn pipeline which would take refined products from Angola to Zambia but the Energy Ministry is less enthusiastic.

Copperbelt Energy Corporation (CEC) has signed a memorandum of understanding (MoU) with Lagos-based investment bank Africa Finance Corporation to collaborate on the development, investment and operation of power assets in Africa

Alstom Hydro France and Alstom Network Schweiz will be banned from receiving World Bank-funded contracts for up to three years after Alstom admitted misconduct in a Zambian hydro project

As the new government of populist President Michael Sata promises to tackle high fuel prices and corruption, the Zambia Public Procurement Agency (ZPPA) has launched a tender to supply the Indeni refinery, with the energy ministry promising a break from past malpractice.

Zesco has backed down from plans to increase electricity tariffs by 25%. The utility needs the extra income to fund new power generation, but there are concerns about the political ramifications for new President Michael Sata’s pro-poor agenda