Categories: Stories

Zimbabwe secures $87 million Indian loan to upgrade Bulawayo power station

India’s Exim Bank has extended an $87 million line of credit to Zimbabwe to finance the upgrade of its Bulawayo Thermal Power Station.

Currently Zimbabwe is only generating half of its peak demand of 2 200MW and is hard pressed for lasting solutions to the power crisis which has seen households and industry endure outages of up to 18 hours a day.

The rehabilitation of the Bulawayo power stations is expected to add 70MW to the national grid from the current 30 MW.

“The facility was a result of accelerated re-engagement with the BRICS (Brazil, Russia, India, China and South Africa) countries and pursuant of the Zimbabwe’s look East policy,” said Finance Minister Patrick Chinamasa, who is in India for the India-Africa Forum.

Zimbabwe would seek more concessional facilities to help resuscitate Zimbabwe’s ailing economy from the bank, he added.

The loan has a repayment period of 10 years at an interest rate of two percent per annum.

In the past, the bank has provided Zimbabwe with funds amounting to $91.5 million, including $28.6 million to upgrade Deka Pumping Station which supports cooling of Hwange Power Station.-The Source

(32 VIEWS)

This post was last modified on %s = human-readable time difference 6:21 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024