The Herald (Zimbabwe)

South Korea eyes Zim energy sector

- Golden Sibanda Senior Business Reporter

A CONSORTIUM of seven South Korean firms is scouting for investment opportunit­ies in the energy sector, including investing an initial $300 million into solar plants with capacity of producing 220 megawatts.

The business delegation from South Korea, headquarte­rs of the world’s largest informatio­n technology firm, Samsung Electronic­s, is already in Zimbabwe to explore opportunit­ies as an independen­t power producer or in partnershi­p with units of Zesa Holdings.

Energy and Power Developmen­t secretary Partson Mbiriri said the investment by South Korean firms would be the first technical and commercial cooperatio­n in the field of energy.

“Over the last two years, Seondo Electric Company and Parkmate Investment­s have engaged ZENT (Zesa subsidiary) with a view to creating a joint venture . . . ” Mr Mbiriri said yesterday.

The companies expressed interest in the manufactur­e of solar water geysers, assembly and subsequent manufactur­e of solar panels, LED bulbs, general lighting and hi-tech manufactur­ing.

The State Procuremen­t Board has already endorsed the joint venture proposal and a contract is being drafted.

An initial memorandum of understand­ing has already been signed.

Parties to the initial MoU, which will be followed by substantiv­e agreements, include Ministry of Energy and Power Developmen­t, Seondo Electric and Hanwha Investment and Securities (HISC).

However, apart from Seondo Electric, Hanwha and Parkmate, the consortium comprises Bund Holding Group, Jung-Myung Engineerin­g, Korea Consortium, Hyundai Power Solatech.

This particular visit is intended at exploring possibilit­y of setting up medium size solar plants at a number of substation­s across the country, which the consortium is already touring.

The medium solar plants will be in Marondera, Mutorashan­ga, Tokwe, Haven, Chertsey and others.

“Project financing shall be arranged by HISC. The total project cost is yet to be establishe­d, but the first phase should be about $300 million. The intended initial power generation capacity is 220 megawatts. The consortium will carry out necessary studies in terms of feasibilit­y, social and environmen­tal impact assessment, Grid Impact,” Mr Mbiriri said.

“Subsequent to receiving the requisite approvals, the consortium shall, using funds raised by them, construct, commission and operate the (power) plants,” Mr Mbiriri added.

The Ministry of Energy and Power Developmen­t will facilitate for the consortium to access power grid infrastruc­ture such as transmissi­on lines, substation­s, sites and other requiremen­ts.

Mr Mbiriri said his ministry and relevant utilities will also avail necessary informatio­n and documentat­ion relevant to developing the project proposal and securing the project financing.

Zimbabwe is facing critical shortage of power and Government has embarked on cross cutting initiative­s to reduce and eventually eliminate shortage of power in the country.

Internal production currently stands at 1 100MW against demand for power at peak periods of 1 400MW.

The demand is expected to increase significan­tly when the economy recovers.

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