Zambia venture seeks bids to build 120-MW Itezhi-Tezhi

A joint venture of Zambia Electricity Supply Corp. (ZESCO) and Tata Africa Holdings (Pty) of South Africa has issued an international tender for construction of the 120-MW Itezhi-Tezhi hydroelectric project on the Kafue River. Bids from pre-qualified contractors are due May 2.

The companies formed Itezhi-Tezhi Power Corp. Ltd. (ITPC) to pursue construction of the $230 million project. It took applications for pre-qualification for civil construction and hydro-mechanical equipment for Itezhi-Tezhi in March. (HNN 2/11/08)

“This contract will be jointly financed by Tata Africa Holdings Ltd. and ZESCO,” a statement said. “In addition, ITPC intends to apply for a loan from financial institutions to meet part of the costs of the Itezhi Tezhi hydroelectric project.”

ZESCO and Tata Africa, a subsidiary of India’s Tata Group, said the project should be commissioned by June 2012 after the completion of contracts covering infrastucture, the power plant, and electro-mechanical works. Other contractors will be needed to build roads, houses, and water and sanitation services by March 2009.

In February, ZESCO said it was talking to financiers from Japan, India, and Western countries seeking a US$600 million financing package to upgrade generation and transmission infrastructure and for Itezhi-Tezhi. (HNN 2/27/08) Itezhi-Tezhi is part of Zambia’s planned US$2 billion investment in power projects to plug a deficit that has forced the mineral-rich southern African country and other neighboring countries to ration power.

For information, contact Project Director, Itezhi Tezhi Power Corp. Ltd., (ITPC � A Tata Africa Holdings Ltd. and ZESCO Joint Venture), c/o ZESCO Ltd., Stand No. 6949, Great East Road, P.O. Box 33304, Lusaka 10101 Zambia; (260) 211-363511; Fax: (260) 211-223970; E-mail: zescolimited@zesco.zm.

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