| Copyright: | Dow Jones & Company, Inc. | | Source: | Comtex Finance | | Wordcount: | 355 |
Apr 28, 2008 (Dow Jones Commodities News via Comtex) --
DOW JONES NEWSWIRES
The National Tender Board of Zambia is finalizing plans to offer an international tender for development of the Kafue Lower power station, the permanent secretary at the Ministry of Energy and Water Development said in a statement Monday.
The tender is being offered as Zambia seeks to increase its power generation capacity to ease a countrywide shortage. Zambian power stations have the capacity to produce over 1,600 megawatts of power but only produce just over 1,000 megawatts due to lack of investment.
Peter Mumba said the government expects the massive project to attract international bidding once the tender is offered, but couldn't reveal when that would be.
Mumba said the government is yet to offer the project to any company for development, refuting earlier local press reports that Mopani Copper Mines, the country's second leading copper and cobalt producer, and Copper Belt Energy Corp., or CEC, the major supplier of power to copper mines, had offered to invest $250 million for the development of the project.
Zambian copper mines have been facing a power crisis since January, which is attributed to increased mining operations and lack of investments in the energy sector. Zambia's vast copper mines consume up to 60% of the country's generated power, and the power crisis is likely to prevent the country's major copper miners from achieving this year's production targets.
Kafue Lower power station is located on Kafue river. If developed, it has the potential to generate up to 750 megawatts of power. It is estimated up to $1 billion would be required to develop the station to increase power supply to Zambia's vast copper mines.
According to Mumba, the government is also considering splitting the state power utility, Zambia Electricity Supply Corp., or Zesco, into three units of generation, transmission and distribution to make it more efficient and ensure stable power supplies.
Zambia, Africa's leading copper producer is expected to produce up to 1 million metric tons of copper by 2010.
-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615; bariyonic@yahoo.co.uk
(END) Dow Jones Newswires
04-28-08 0541ET
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