Fri, 16 Feb 2018 13:17:01 +0000
By OLIVER SAMBOKO in Kariba town
ZIMBABWEANS have questioned the cost disparity between Zambia’s KNBPS extension and Kariba South bank power Station extension project being undertaken by China state-owed Sinohydro Corporation at the tune of over $533 million dollars.
Zambia incurred less $278 million on its Kariba North Bank extension project which increased power generation by 360MW while Zimbabwe was quoted significantly higher, $355 million just for the engineering, procurement and construction (EPC) cost to add 300MW to its national grid.
Mr. Sam Mawawo, who is chairperson for the Kariba Incorporated area residents and ratepayer association (KIARRA), a local CBO, said his organisation wants government to probe the matter and establish why Zimbabwe is paying more than what Zambia paid for similar project.
He said both power stations share Kariba Dam for water as a source of energy and are adjacently located, therefore most Zimbabweans expected their country to spend the same amount Zambia paid Sinohydro for the extension works.
“As citizens, we are asking why Zimbabwe is paying more for less while Zambia got value for their money.
Mr. Mawawo further called on the new government to probe all deals signed during the previous administration and ensure that all individuals that benefited from government projects are brought to book.
Meanwhile state-owned power utility Zesa Holdings has reiterated the factors behind the $178 million cost disparity between extensions to Kariba South and Kariba North power stations, saying this was due to auxiliary works and other inescapable development expenses.
Zesa, through its generation arm, Zimbabwe Power Company, signed a $355 million engineering procurement and construction (EPC) contract with Sino Hydro in 2013 for the 300 megawatt extension of Kariba South’s power generation capacity.
Zesa’s clarification comes after the first unit of Kariba South extension came on line in December last year, while the second unit is scheduled to start feeding the grid by end of March.
Zesa said the difference in costs with the Zambian project included that the Zambia’s plant is on one site, while Kariba South extension is on two sites. Further, the tunnelling on Zimbabwe’s side was significantly longer than on the north bank power station.
Zimbabwe is working on a number of other power generation projects, which have been lined up for execution by ZPC, among them being the 600MW Hwange Power Station expansion project to be developed adjacent to the existing 920MW power plant where construction is due to commence once a loan from China is finalised.
