Message Mer 9 Fév 2011 20:14

CEC starts $120m Kabompo power project

CEC starts $120m Kabompo power project
From MARTIN KAPENDE in Cape Town

THE Copperbelt Energy Corporation (CEC) has started site preparation for the 40 megawatts Kabompo Hydro-power station estimated to cost about US$ 120 million, whose actual construction work will start next year.

CEC managing director- corporate development Michael Tarney said in Cape Town that CEC had already short-listed five companies following an expression of interest that was done last year.

Mr Tarney said this on the side lines of the 'Investing in Africa Mining Indaba 2011', where the company is exhibiting.

He said because of the specialised nature of hydro-electricity projects, all the shortlisted companies are foreign.

However, he said he expects that the company that will eventually be selected to do the actual construction work will use local contractors and engage local people with about 1,000 jobs to be created.

Mr Tarney said CEC decided to exhibit at the Mining Indaba as a way of meeting some of its clients including some of its investors and the many potential exploring firms that want to open mines in Zambia as a way of telling them what the company can do to address their power needs and also meet potential financiers for its expansion projects including the Kapombo project.

He said in the past two days, over 200 visitors have passed through the CEC stand indicating the interest by financiers and investors in what CEC is doing.

He also said that CEC was hoping that construction of the Kapombo hydro power station will be completed in 2015 although actual construction work is estimated to take three years which could make it come on stream earlier.

Mr Tarney said the entire project could cost slightly more than the estimated US $120 million because it will also involve construction of transmission lines.

He said the Environmental Impact Assessment report was already submitted to the Environmental Council of Zambia which is assessing it.

He said there will be few families to be relocated and the company will build them modern houses, better than they had previously adding that CEC was in talks with the traditional rulers and authorities on relocating the families that would be affected.

He said the communities will also be supplied with a school, a clinic and other social amenities.

Mr Tarney said CEC will first look at satisfying the local market before considering any exports market adding that the company was in talks with Zesco Limited and Rural Electrification Authority on supplying the rural communities as well.

The firm was also looking at First Quantum's Minerals recently launched US$1 billion Trident project which will be about 20 to 30 kilometres away to supply it with power.