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Kabompo Gorge

Value : US$210 million
Capacity : 40MW
Type : Hydro generation / transmission
Vehicle : Kabompo Hydro Power Ltd
Location : North-Western Provice, Zambia
CEC interest : 100%
Term : 15.5 years
Finance : Debt & equity

CEC-KHPL is a special purpose vehicle, wholly owned by CEC, created to develop the Kabompo Gorge Hydropower Project. The Kabompo Hydro Power Project, located in Mwinilunga District of North-Western Province, was awarded to a CEC-led consortium by the Zambian Government in 2008. This project is the Company’s forerunner in Greenfield hydroelectric power generation.

The basis for the award was that the developer would undertake a feasibility study and then negotiate with the Government of the Republic of Zambia a BOO (build-own-operate) concession to develop the project.

The hydro power scheme proposed comprises an underground power station of 40MW generation capacity and an annual energy output of about 166 GWh. In addition, there is a dam of roller compacted concrete, approximately 50 metres high, and 4 kilometres of underground tunneling. Power will be evacuated through a 35 kilometer-long transmission line at 132kV that will join the national grid at Kalumbila mine.

The key benefits anticipated from the project include alleviation of potential national power shortage…

The key benefits anticipated from the project include alleviation of potential national power shortage, increased security of future power supplies and provision of emergency power supplies, especially for the mines. The project will also have a stabilising effect on the national grid due to its location as currently, all power sources are located in the country’s south.

Other benefits expected through the successful implementation of the project include potential for electrification of parts of North-Western Province through the 33kV builder’s power line, creation of jobs especially during construction, and socio-economic empowerment plus capacity building for the local populations.

Key milestones to date include:

  • Feasibility study completion for construction of transmission lines for evacuation of hydro power in Luapula, Katanga and Copperbelt Provinces;
  • Granting of conditional approval of Environmental Impact Statement (EIS);
  • Initialing of Engineering, Procurement and Construction (EPC) Contract with preferred contractor – Sinohydro Corporation Limited of China;
  • Completion of LiDAR laser survey of Luapula River and catchment area to provide topographical information;
  • Incorporation of CEC-Kabompo Hydro Power Limited;
  • Negotiations with the Government on the Implementation Agreement (IA) were completed through the Office for Promoting Private Power Investments (OPPPI). The final IA was submitted to OPPPI in November 2013 for approval by the Attorney General’s Office.
  • Final drafts of the Finance Lease Agreement, Infrastructure Use Agreement and Project Management Agreement were produced and subjected to preliminary review by the Lenders’ advisers.
  • Relevant environmental and social approvals submitted to ZEMA for review.
  • Negotiation meetings on the Investment Promotion and Protection Agreement (IPPA) were held with the Zambia Development Agency (ZDA) in December 2013. A plan of action to finalize the IPPA was agreed.

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Kabompo Gorge in pictures