Hwange expansion jumpstarts ancillary projects
THE US$1,5 billion 600MW Hwange Power Station Unit 7 and 8 expansion project in Matabeleland North province will be a critical economic enabler beyond increased power generation as it will also boost several ancillary projects that feed into the on-going construction works.
Funded by China Exim Bank, Sinohydro and the Government of Zimbabwe through the Zimbabwe Power Company (ZPC), the project is now 89 percent complete with its first phase expected to be commissioned in November and the last phase sometime in March 2023.
The expansion project has already created more than 3 000 jobs for locals and has had downstream impact on suppliers of key materials.
The project’s positive impact dovetails with the Second Republic’s drive to transform Zimbabwe into an upper middle-income economy by 2030.
According to a presentation outline delivered by ZPC management during the visit to the project by the Parliamentary Portfolio Committee on Budget, Finance and Economic Development last week, several ancillary projects along the value chain are already benefiting while more are expected to also benefit from the power project.
These include the transport sector led by the National Railways of Zimbabwe, coal production and supply, cement and limestone production.
ZPC site Engineer, Forbes Chanakira, said the project is of immense benefit to the economy as it has created several spin-off projects.
“This project is a key enabler for economic growth and we have seen this happening as a lotof money is being channelled towards the support of local industries.
We have spent close to US$91 million on the local market through various contracts,” he said.
“We need to ensure that our local market is ready to participate in this major project.
The plant uses a lot of limestone, which has triggered economic growth as several limestone suppliers are benefiting” said Eng Chanakira.
He said 375 tonnes of limestone is required per day and 6 500 tonnes of coal.
Engagement with rail operators, NRZ and the Beitbridge Bulawayo Railway (BBR) is underway for the supply of the required materials.
The country’s major cement producer, PPC is said to be ready to supply the required limestone for both commissioning and operation.
Another beneficiary is the extension of the existing Deka water plant.
Just last week, ZPC announced that it has started receiving various components for the Deka project, which is funded to the tune of US$48,1 million from a line of credit extended by Indian Government.
Hwange Power Station draws raw water for electricity generation and cooling from the Zambezi River and the Deka water project is crucial in that regard.
The water demand for Unit 7 and 8 is 1 860 cubic metres per hour and a new 250 000 cubic metres reservoir to complement the existing one has been constructed as part of the expansion project.
The power station is expected to generate more than 60 percent of Zimbabwe’s electricity needs following the expansion.