CEC signs Kabompo Project IPPA with Zambia Development Agency

CEC, through its special purpose vehicle CEC-Kabompo Hydro Power Limited (CEC-KHPL), has today signed the Investment Promotion and Protection Agreement (IPPA) with the Zambia Development Agency (ZDA) for the development of the Kabompo Gorge Hydroelectric power project (Kabompo).

The IPPA is a critical milestone in the development of the 40MW Kabompo project as it will ensure promotion and protection of the $220 million investment in Zambia’s North-Western province, the first such power project to emerge from the area.

CEC and CEC-KHPL Chairman, Hanson Sindowe, said that with the IPPA in place, greater lender and investor confidence was expected, including the ability to secure fiscal concessions critical in ensuring the project’s viability.

Speaking on behalf of the ZDA, Board Chairman Songowayo Zyambo, said the ZDA had no difficulty in approving the IPPA for reasons that the project is in the energy sector which is in dire need of increased electricity generation to meet demand, the investment is in a priority sector as outlined in the country’s development plans and it had the scale to create employment in addition to local business and community support.

And ZDA Director-General, Patrick Chisanga, promised on behalf of the Zambia Government, to stand with CEC in ensuring the commitments made were actualized and commended CEC for taking on a greenfield investment of this magnitude in a critical sector of the national economy.

Signing ceremony in pictures