Zimbabwe is hoping to consign the use of diesel generators to the past by delivering the first phase of a 2000 MW coal-fired power project.
The plant is expected to commence construction next year, after PER Lusulu Power signed an agreement with China State Construction Engineering Corp Ltd to build a 600 MW unit as first of four phases.
Zimbabwe produces a maximum 1100 MW of electricity, half its peak demand, forcing local industries to use costly diesel generators to keep operations running. Power shortages have been blamed for keeping away potential investors.
Reuters reports that Chinese financial institutions had agreed to fund the $1.1 billion power plant in north-western Zimbabwe, subject to the company signing a power purchase agreement with the state energy regulator.
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