The engineering, procurement and construction (EPC) contract for the 750MW Kafue Gorge Lower (KGL) hydroelectric power station was awarded to SINOHYDRO Corporation in October 2015. The Republic of Zambia government initiated the construction on November 28, 2015 in presence of the President, Mr Edgar Lungu and Mr Song Dongsheng Chairman of SINOHYDRO Corporation Limited. Addressing the ceremony, President Edgar Lungu claimed Kafue Gorge Lower (KGL) will be the third biggest hydropower station in the country on its completion. KGL is Zambia's first major investment being funded through public-private partnership (PPP) model. The project, increasing the production by 38%, will address the growing demand for electricity in the country and surrounding regions becoming a hub in energy production and will alleviate the power deficit, thus supporting continued economic progress. The Government of Zambia has appointed state-owned power producer ZESCO for the development of the project. The plant is scheduled for commissioning in 2019. The new power plant on the Kafue River is located on a primary tributary of the Zambezi River on the left bank, in the southern Chikankata district, 90km away from the Lusaka and 17.3km downstream of the existing Kafue Gorge Upper (KGU) hydropower station dam site. The project includes the construction of a 140m-high concrete-face rock fill dam (CFRD) and a surface powerhouse housing five 150MW generator units. The total cost of the project is estimated at $2bn. The project is being financed by the Zambian government and foreign financial institutions including the Exim Bank of China. SINOHYDRO entered Zambian power market in 1999 and opened a subsidiary company in 2013. |