Planning for the Batoka power project, which Zambia is jointly planning to develop with neighbour Zimbabwe, is now expected to start commencement of repayment of a $70 million debt owed to Zambia that had stalled the hydropower plant.

Settlement of this debt is expected to pave the way for the two Southern African countries to start setting up the jointly owned 1 600-megawatt hydroelectric power plant.

Zimbabwe is facing severe power shortages that have led to frequent electricity outages. Businesses and companies, particularly those in the mining and manufacturing sectors, have said that they are incurring huge costs in powering up operations through high voltage diesel generators.

Zambia and Zimbabwe are keen to forge ahead with construction of the Batoka power project to plug the growing power deficit, which is also being felt across the region. The Batoka power project will cost about $2.5 billion.

“ZESA has paid $20 million after the creation of a sinking fund with a local bank and should have paid an additional $20 million by the end of March this year,” said Nyika Chifamba, the chief executive officer at ZESA.

The new power plant will be situated along the Batoka gauge, about 50Kms downstream of the Victoria Falls. Zimbabwe and Zambia will each draw 800MW from the power plant.

Chifamba highlighted that the “amount” which Zimbabwe owes to Zambia would be “cleared by the end of March next year” while “work on the project (is) expected to begin within 18 months as expressions of interest had been advertised” for.

The Batoka power plant will be constructed and run under a build-operate and transfer arrangement.

“Zambians needed to see first that we were committed to settling that debt and to demonstrate that we are bona fide partners before they could actually enter into the Batoka project. Because we have done so, that has unlocked the project.”

Zimbabwe presently generates 1000MW of electricity, which experts say is only half of the power that Zimbabwe requires.

The Batoka power project has been held back by Zimbabwe’s failure to settle a debt that covers proceeds from the disposal of assets of the disbanded Central African Power Corporation (CAPCO) which the two countries jointly owned.

It is expected that new power projects will help ease the country’s power woes.