Zambia and Zimbabwe renew push for $5 billion hydro dam project
Zambia and Zimbabwe are stepping up efforts to attract investment for the long-stalled $5 billion Batoka Gorge hydropower project by reviving a controversial proposal to source water from the Democratic Republic of Congo.
Zambia and Zimbabwe are reviving efforts to attract investment for the Batoka Gorge hydropower project.
They are aiming to engage investors for the proposed 2,400-megawatt plant in the next 12 to 18 months.
The project originally faced delays due to the COVID-19 pandemic and challenges in securing financing.
Zambia and Zimbabwe are stepping up efforts to attract investment for the long-stalled $5 billion Batoka Gorge hydropower project by reviving a controversial proposal to source water from the Democratic Republic of Congo.
The Zambezi River Authority, a joint agency between the two nations responsible for managing the Kariba Dam, has assembled a dedicated team to engage investors for the proposed 2,400-megawatt plant, according to CEO Munyaradzi Munodawafa.
'The resource mobilization effort is targeting a time frame of 12 to 18 months, subject to investor confidence, market conditions, and ongoing bilateral support from the Governments of Zambia and Zimbabwe,' Munodawafa.
Construction of the Batoka Gorge hydropower project was originally slated to begin in 2020 but faced delays due to the COVID-19 pandemic and challenges in securing financing, Bloomberg reported.
In a major shake-up last year, Zambia cancelled a 2019 contract awarded to General Electric Co. and China's Power Construction Corp., citing procurement irregularities.
Debt challenges threaten project
Zambia and Zimbabwe now aim to select new bidders by September 2025. However, fundraising efforts are complicated by both countries' financial woes: Zimbabwe is grappling with $21 billion in debt, while Zambia remains in default and is still negotiating a debt restructuring deal, five years after missing its loan payments.
To strengthen the Kariba Dam's capacity and address the growing threat of erratic rainfall linked to climate change, Zambia and Zimbabwe are considering a bold plan: diverting up to 16 billion cubic meters (4.3 trillion gallons) of water annually from the Congo River.
The move could help stabilize inflows into Lake Kariba — the world's largest man-made reservoir — but it comes with major hurdles, such as the steep energy requirements for pumping water uphill and the difficult terrain.
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