Zambia and Zimbabwe have agreed to each commit $220 million toward reviving construction of the long-delayed $4.2 billion Batoka Gorge hydropower project, a cross-border plant expected to supply electricity to both countries.
The funding plan will also involve pursuing equity partners to improve the project’s bankability, according to the Zambezi River Authority (ZRA), the joint agency that manages the Kariba Dam complex and is overseeing development of the proposed 2,400-megawatt facility near the Victoria Falls World Heritage site.
A joint council of ministers has approved the creation of a resource-mobilisation committee tasked with raising financing for the publicly owned dam infrastructure, according to Bloomberg.
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The move comes after both countries were hit by widespread power outages last year when a severe drought slashed water levels at the Kariba Dam, cutting hydroelectric output.
Power crisis pressure
Construction of the Batoka Gorge has been repeatedly delayed by funding constraints and disruptions caused by the COVID-19 pandemic.
Zambia also pulled out of a 2019 engineering, procurement and construction contract awarded to General Electric and China’s Power Construction Corp., citing concerns over irregular procurement processes.
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The ZRA said engineering feasibility work and environmental studies are now underway, adding that financial, technical and legal advisers have been appointed as part of efforts to push the project back on track.
