A two stage tender process for construction work on the 600MW plant is expected to be launched this year. The scheme will be financed through debt and equity, with Reuters reporting that the Zambian Government will put up $250M, with a similar amount coming from private equity.
Back in July 2008, MWH had been awarded a contract by the International Finance Corp (IFC) for studies of project, which was initially expected to have an installed capacity of 750MW.
IFC, which is part of the World Bank Group, is helping to develop the scheme to exploit the remaining 200m of head on Kafue River. The project is to be built between the tailrace of the 900MW Kafue Gorge Upper plant and, downstream, the confluence of the Kafue and Zambezi rivers.
Kafue Gorge Lower could meet a quarter of the country’s electricity needs, most of which is met by hydro power. Power demand is about 1.6GW and is estimated to reach 2.5GW in five years.
