Leonard Ncube, leonard.ncube@chronicle.co.zw
THE Zambezi River Authority (ZRA) has said it is in the process of updating environmental engineering and hydrological studies for the Batoka Gorge Hydro-Power Project (BGHPP) which should be completed next year before a new developer is engaged for the implementation of the project.
Zimbabwe and Zambia are implementing the hydro-power project in the gorges along the Zambezi River where two 1 200MW power plants on either side of the river, a sub-station, transmission as well as a new settlement and road infrastructure will be built.
BGHPP is one of the mega projects in Matabeleland North Province and its completion is expected to enhance electricity availability in the country and region. It will also present a good investment opportunity for the private sector in the value chain.
ZRA, a company jointly established by both countries to manage water projects in the Zambezi River, is working on the project whose initial cost was US$5 billion.
The proposed project is set to transform Matabeleland North and Zambian communities on the other side of the river, with facilities such as banks, shops, private offices and other ancillary infrastructure set to be constructed.
In 2018, Zimbabwe and Zambia agreed to build the hydroelectric scheme, and the project was expected to provide about a third of Zimbabwe and Zambia’s power requirements.
Located about 50km downstream from Victoria Falls City, the massive project has been touted as a flagship project in the southern African region. A consortium of Power Construction Corporation of China and US firm General Electric had won a bid to build the 2 400MW hydropower station under a build, operate and transfer funding model before disengagement this year.
Although the idea to build a dam at the Batoka Gorge was mooted in the 1990s, it has been in limbo for decades until it was revived following the advent of the Second Republic.
However, because of challenges associated with funding and other issues, the implementation took long until studies were overtaken by time.
Updating renewable energy experts at the Zimbabwe-Zambia Energy Projects Summit 2024, ZRA director for projects and dam management services, Engineer Sithembinkosi Mhlanga said the authority is updating the feasibility studies.
The project status was topical in the discussions as energy experts said delays in its implementation were a cause for concern.
Eng Mhlanga said engineering feasibility studies were completed in 2019 while the Environmental Social Impact Assessment (ESIA) was done in 2022 which could have paved the way for implementation.
“The project is at a position where we are updating studies. We are at a time when this project needs to have studies updated so that they are relevant for the actual implementation.
For updates of studies, we are looking at a few activities particularly engineering feasibility, which is updating the assessment of hydrological data because 2 400MW was considered as design capacity for a certain scenario of operation,” he said.
The budget for Batoka had been put during the earlier studies at a range of between US$4 billion and US$5 billion.
“It’s expected that when we undertake these studies there will be a reviewed assessment of the cost which again will get refined by the developer in terms of development cost. So we remain with the figure of US$5 billion but to be fine-tuned through studies and developers submissions,” said Eng Mhlanga.
He said they are looking forward to finishing their studies in 2025 and then starting the process of procuring a developer.
“This process should end in 2026 in terms of pre-qualification and shortlisting leading to bidding and financial close probably in 2027,” said Eng Mhlanga.
He said, among other challenges, delays were caused by the time it took to disengage with the previous developer.
“The period of implementation will take between four and five years, but these are some of the details that will be finalised once a new developer is engaged. The project intends not to displace people but instead will generate direct employment for over 4 000 people and 6 000 in the two countries,” said Eng Mhlanga.
He said there is also a need to undertake studies on the impact of the Batoka Gorge on Victoria Falls’ outstanding universal value and sustainability, to conserve the total value of the World Heritage Site.
“We parted with the previous developer and we then got into these activities now we are entering into partnerships with specific key partners like the African Development Bank and African Legal Support Facility. We are looking at completing our studies in 2025 and then proceeding,” he said.
The coming in of Batoka City will be a big boost for the broader Matabeleland North development, which has in the recent past become an economic epicentre following the designation of Victoria Falls as a special economic zone (SEZ) and the elevation of the tourism town to a city. — @ncubeleon
Source: Zambezi River Authority updates Batoka project feasibility studies (21/11/24)