Green Fuel seeks $300m for dam con­struc­tion

Chronicle (Zimbabwe) - - Business - Martin Kadzere Harare Bureau

GREEN Fuel, a joint ven­ture be­tween Arda, Mac­dom and Rat­ing In­vest­ments re­quires at least $300 mil­lion to construct a dam to sup­port its expansion pro­gramme.

Cur­rently, the com­pany’s sug­ar­cane plan­ta­tions in Chisum­banje, Man­i­ca­land are on about 10 000 hectares but there is scope to ex­pand them to 50 000 ha.

The expansion is part of the com­pany’s medium term plan of be­com­ing a re­gional ethanol com­pany.

“Any fur­ther expansion is hinged on avail­abil­ity of wa­ter and that is the main hold back be­cause the level of in­vest­ment is too high,” Ada chair­man Mr Basil Nyabadza said.

“We have a bud­get of $300 mil­lion to construct Kondo Dam and it is very dif­fi­cult to raise that kind of money un­der the cur­rent en­vi­ron­ment.”

Os­borne Dam and Le­sape Dam are feed­ing into the plan­ta­tion and the two wa­ter sources can­not suf­fi­ciently sup­port the expansion.

Mr Nyabadza said the de­sign stage of the dam was com­pleted.

Kondo Dam is lo­cated on the Save river ap­prox­i­mately 3,6km south of the Save River and Tsung­wizi River con­flu­ence.

The project in­volves the con­struc­tion of a con­crete faced rock­fill dam, an earth­fill sad­dle dam and hy­dro-power gen­er­at­ing plant.

Upon com­ple­tion, Kondo Dam will store 3,5 bil­lion cu­bic me­tres of wa­ter for power gen­er­a­tion and ir­ri­ga­tion de­vel­op­ment in the Chisum­banje area, which lies in the south eastern part of the coun­try.

The dam has po­ten­tial to gen­er­ate 200 MW and has a high eco­tourism po­ten­tial, which will ben­e­fit the Zim­bab­wean econ­omy.

Green Fuel expansion pro­gramme also in­volves con­struc­tion of two ad­di­tional plants with com­bined ca­pac­ity of 40 mil­lion litres of ethanol per month at a cost of $540 mil­lion.

About $400 mil­lion will be re­quired de­velop the farm­land mea­sur­ing 40 000 ha.

Green Fuel started op­er­a­tions in 2012 and its op­er­a­tions were boosted by the in­tro­duc­tion of manda­tory blend­ing.

ARDA chair­man Mr Basil Nyabadza

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