Zimbabwe awards Hwange extension to YTL
Malaysian company YTL Power International has been awarded with the privatization and expansion of Hwange power station (HPS) by the Zimbabwe government. The HPS privatization is to be undertaken by Zimbabwe Power Company, ZESA`s subsidiary, and YTL, through a joint venture company, African Power Ltd (APL).
Under the award ZESA will transfer the existing HPS to APL and APL will expand the existing power station by 600 MW by financing and developing two new 300 MW units increasing the capacity of the plant to a total of 1580 MW.
After conclusion of the project agreements and debt financing for the privatization, it is intended that the project would seek a listing on the Kuala Lumpur Stock Exchange (KLSE) under the guidelines for listing infrastructure projects companies. Debt financing is expected to be completed within 12 months of signing all project agreements and listing on the KLSE on the KLSE would be completed within another six months.
A YTL spokesperson said: “This is expected to be a landmark listing as it will be the first time that the Asian capital markets will be utilized to tap equity capital for African projects”.
Zimbabwe decided to privatize the HPS in 1996 and subsequently expand its capacity by constructing two new 300 MW coal fired units.