Zimbabwe and China have signed a $320 million power deal for the expansion of the Kariba South Hydro Power Project which will boost electricity generation by 300 megawatts.
The deal was signed by Finance Minister Patrick Chinamasa and Zhu Hongjie president of the China Exim Bank which provided a loan of $319.5 million payable over 20 years at 2 percent interest.
The Zimbabwe Power Company will provide only 10 percent of the project cost which is $35.4 million.
The project is expected to take four years and will be carried out by a Chinese company Sino Hydro.
Zimbabwe is facing an acute power shortage which is affecting manufacturing, mining and agriculture, the key contributors to economic growth.
It is producing only 1 200 megawatts against a national requirement of 2 200 megawatts.
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