Chinese Constructor Awarded With USD 1.97 Billion Kafue Gorge Lower Hydroelectric Power Expansion


Zambia Electric Supply Corporation Limited (ZESCO) has recently awarded Chinese Sinohydro Corporation Limited (Sinohydro), with a USD 1.97 billion contract to expand capacity at the Kafue Gorge Lower Hydroelectric Project (KGL Project) in Zambia’s south central region.

Construction works are expected to last for six years and will expand the KGL Project’s capacity from the current 450 MW to 750 MW.

The KGL Project is expected to deliver a power generation of 2,575,000,000 kW-hour per annum working at a rate of 3,653 hours per annum and will be connected to Zambia’s national grid through a 330 kV transmission line and will be part of the Zambia-Tanzania-Kenya Power Interconnection project.

The KGL Project is part of a series of contracts that the Zambian Government has undertaken and is partially financing to raise the current hydro power installed capacity of 1,948 MW.

Regarding this project, the Zambian Government is funding it with a USD 295.5 million stake, while the difference is being funded with a loan by EXIM Bank of China.

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