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WATER WORLD
Zimbabwe signs $1.5 bn power deal with China's Sinohydro
by Staff Writers
Harare (AFP) Oct 10, 2014


Japanese company proposes coal power plant in Myanmar
Tokyo (UPI) Oct 10, 2014 - Japanese energy company Marubeni Corp. said Friday it signed a deal with Myanmar's government to advance what it says is a low-carbon coal-fired power plant.

The Japanese company said electricity demand in Myanmar is increasing because of recent economic growth.

"Marubeni believes it can contribute to the reliable power supply in Myanmar by materializing this project and thereby participating in large power generation projects in Myanmar," it said in a statement.

The company signed an agreement with the Ministry of Electric Power to carry out a feasibility study for a coal-fired power plant "utilizing environmentally friendly and highly efficient technology." The plant, if developed, could generate as much as 2,000 megawatts of electricity.

The project would include the construction of transmission lines from the power plant in southern Myanmar to central Thailand.

International companies started investing more in Myanmar after general elections ended a period of military rule in 2010. Human rights groups say economic pressure, not rewards, is needed to maintain the momentum of reforms.

The Myanmar government announced the pardon and release of 3,073 prisoners earlier this week.

Energy-starved Zimbabwe signed a $1.5 billion (1.2-billion-euro) deal with China's Sinohydro on Friday for a project to boost power generation at the Hwange coal-fired power station.

Energy minister Dzikamayi Mavhaire said the addition of two new units at Hwange "will be a huge step in resolving the current power deficit and ease load-shedding."

"Everyone should see the light -- not in the metaphorical sense but in real sense," he said.

Mavhaire said the project at Hwange in northwestern Zimbabwe would take 42 months to complete at a cost of $1.174 billion, with the remainder going to administrative costs.

On completion the project will add 600 megawatts (MW) to the national grid, expanding current generating capacity by 50 percent.

China's Export-Import Bank will provide a loan for the project, 80 percent of it at concessionary rates and 20 percent at commercial rates.

Sinohydro was awarded the tender last year after another Chinese company failed to complete the contract.

The tender had initially been awarded to China Machinery and Engineering Company (CMEC).

Sinohydro's vice-president for Africa, Wang Xinhuai, pledged to "execute the contract strictly and deliver the project with high quality."

Zimbabwe suffers frequent power shortages. This causes the power utility to resort to load-shedding, cutting supplies to some parts of the country for about eight hours.

The Zimbabwe Electricity Supply Authority has tightened the rationing in recent weeks as it battles serious shortages, forcing some parts of the country to go without electricity for up to 18 hours per day.

Frequent breakdowns of Zimbabwe's ageing power stations mean the country suffers perennial power-shortages.

The country produces an average of 1,200 megawatts against a peak demand of 2,200 MW and relies on imports to supplement its production.

Last month Zimbabwe launched a $533-million project with Sinohydro to scale up electricity generation at another of its major plants, the Kariba hydroelectric power station.

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