The Government of India is set to provide a line of credit (LoC) of $310m to Zimbabwe to enhance the lifecycle of the Hwange thermal plant.
The decision to finance the thermal plant was announced by the Vice-President of India Venkaiah Naidu at a meeting with the President of Zimbabwe Emmerson Mnangagwa during his visit to the country.
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With an installed capacity of 920MW, the Hwange Thermal Power Station is owned and operated by Zimbabwe Electricity Supply Authority (ZESA).
ZESA is a state-owned company contracted to generate, transmit and distribute electricity in Zimbabwe.
Hwange Thermal Power Station features four 120MW units and two units of 220MW. Construction of the first stage units began in 1973, which were commissioned from 1983 to 1986, and was followed by second stage units in 1986-87.
The Indian Government will also extend funds for two LoC projects in Zimbabwe.
A $23m fund will be provided for Thermal Plant Project at Bulawayo and $19m for the Deka Pipe laying project. Funding is expected to help complete the projects within the stipulated time.
The Zimbabwe Government also signed the Frame Work Agreement on International Solar Alliance.
Venkaiah Naidu further added that India may extend its support to Zimbabwe for the development of micro and mini-grid, smart grids and hybrid renewable energy technologies.
