The start represents the handover of the Kafue Gorge Lower project site to the contractor Sinohydro Corporation of China by the government.
The launch follows a memorandum of understanding signed last month between China and Zambia for the development of the China-aided $2bn Kafue Gorge Lower Hydro-power project.
Located in southern Zambia’s Chikankata district, about 90km from Lusaka, the hydro power plant will help in addressing power shortage in the country.
Xinhua news agency cited Zambia President Edgar Lungu as saying during the launch that the country plans to fund 15% of the project cost in equity while the remaining fund will be contributed by the contractor.
The contractor will arrange debt financing from the China Exim Bank and Industrial and Commercial Bank of China to fund the project, Lungu said.
Lungu added: "This is a viable project with assured market for its product and therefore recouping the investment we are making is assured.
"This project also assures us of sustainable energy security as a nation because it will add a significant amount of power to the grid."
The Zambian Government is implementing the hydro power project through the energy and water development ministry and state-owned power company Zesco under a special purpose vehicle, Kafue Gorge Lower Power Development, reported Lusaka Times.
Scheduled to be completed in four years, the project is expected to create about 5,000 jobs during construction phase.
Lungu also noted that the country plans to commission the 100MW power station at Itezhi Tezhi next month.
Image: Zambia intends to boost its power generation capacity to meet demands. Photo: courtesy of Natara/ FreeDigitalPhotos.net.
