US$87 million for Bulawayo Thermal Power Station re-powering
THE India Export and Import Bank has extended an US$87 million loan for the re-powering of the Bulawayo thermal power station.
The loan has a tenure of 13 years, a grace period of three years and a repayment period of 10 years at two percent interest rate per annum.
In a statement, Finance Minister Patrick Chinamasa, who signed on behalf of Zimbabwe, said the revamping of Bulawayo power station would help mitigate the country’s power woes and in turn improve industrial productivity.
He said the project was expected to take three years to complete.
“Sub-Saharan Africa, of which we are part of. is experiencing major power shortages. Implementation of the project will indeed improve the supply of electricity which will in turn improve economic performance as it reduces the cost of production,” he said.
Chinamasa said the facility is one of the fruits of accelerated reengagement with the BRICS countries and pursuance of the Look East Policy.
“Implementation of the project will indeed improve the supply of electricity which will in turn improve economic performance as it reduces the cost of production reliability of power,” he said.
He said the economy needs uninterrupted power supply to improve industrial efficiencies
“The rehabilitation of Bulawayo power station will contribute an additional 70 megawatts to our national grid from the current 30 megawatts.”
Chinamasa said government would continue to engage the India Exim Bank for additional loans to fund economic recovery efforts.
“Furthermore, we are looking for resources to be channelled towards economically viable projects that have a capacity to generate income and repay on their own so as not to put too much pressure on government,” he said.
India Exim Bank managing director Yaduvendra Marthur, who signed on behalf of the bank, re-iterated India’s continued support for Zimbabwe’s efforts to resuscitate her economy.
To date the Exim Bank has extended several loans to Zimbabwe including a US$49, 9 million facility for the purchase of vehicles for the Hospitality and Tourism Industry Ministry and $13 million to Hwange Colliery Company for the purchase of mining equipment.
The bank has also provided a loan of US$28 million for the upgrading of Deka pumping station to support the cooling system of Hwange Thermal Power Station -FinX
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