Zimbabwe is ready to reform says Chinamasa

“I am aware that to attract private capital for our public infrastructure projects, particularly energy projects with high upfront costs, we need to address and overcome a number of perceived risks, including regulatory, financial, legal and other such barriers” he said.

“A project of this magnitude requires much preparation for the market so as to provide clarity for easier investor assessment. This is also benefiting from reform programmes focusing on attracting capital, particularly from private investors into the energy sector that our two countries have been implementing.”

Zambian Finance Minister Felix Mutati also weighed in saying that transparency and consistency would be at the core of the two government’s engagement with investors. 

“We are aware that for such investments to take place, we have a number of structural issues that we will need to address as governments. Key is the commitment to a predictable, consistent and enabling policy environment in the energy sector that will guarantee an attractive return on your investment,” he said.

“To this end the tax regime will have to be stable and predictable to ensure that your long-term models are sustainable as you make these decisions. On our part, I would like to assure you of our commitment to a stable fiscal regime.”

The total project cost  is estimated at $4 billion and the unit cost of electricity generated from it is expected at 3.6 Cents/kwh compared to a regional average tariff of 8.25 us cents/kwh.

A number of institutional investors, including prominent  banks such as Standard Chartered Bank, Stanbic Bank, and Developmental Financial Institutions were present at the conference.

Sino Hydro Ltd and Italian contractors Salini Impregil are also in attendance.

Completion of the Batoka gorge power project is expected to go a long way in plugging the Southern African Development Community (SADC) region’s power deficit currently at 6  000MW. – The Source

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