The project is expected to considerably expand hydro power generation in the country that currently stands at 1,800MW.
Finance Minister Alexander Chikwanda was quoted by AllAfrica as saying that the loan will enable the construction and operation of a 120MW hydro-power plant at Itezhi Tezhi along the Kafue River.
The hydro power plant will feature two Alstom 60MW turbine generators with Chinese engineering company Sinohydro to oversee the construction work.
The project represents the country’s first public private partnership in the energy sector to reduce the ongoing power deficit.
Itezhi Tezhi is being jointly developed by the TATA Group of India and the Zambian Electricity Supply Corporation (ZESCO) at an estimated cost of $250m.
AfDB operations infrastructure, private sector and regional integration vice president Gilbert Mbesherubusa further said that economic growth in the country and in southern Africa will continue to propel the demand for electricity.
