POWER INVESTMENT ZIMBABWE- ZESA Holdings 2022

POWER
INVESTMENT
ZIMBABWE

@o cialZESA
www.zesaholdings.co.zw

CONTENTS
PAGE

1. INTRODUCTION .....................................................................................................................................1

2. ABOUT ZIMBABWE...............................................................................................................................1
2.1. Country Profile.............................................................................................................................................................1
2.2. Zimbabwe Economy...............................................................................................................................................2
2.3. National Vision...........................................................................................................................................................3

3. OVERVIEW OF THE POWER SECTOR IN ZIMBABWE ................................................................5
3.1. Power Supply Situation..........................................................................................................................................5
3.2. Location........................................................................................................................................................................5
3.3. Regulation...................................................................................................................................................................5

4. ABOUT ZESA HOLDINGS ..................................................................................................................6
5. ZESA STRATEGIC RESPONSE TO NATIONAL VISION 2030.....................................................6

6. WHY INVEST IN THE ZIMBABWE POWER SECTOR?..................................................................8
6.1. Current Electricity Supply Gap .........................................................................................................................8
6.2. Growing Demand Due to Economic Growth ............................................................................................8
6.3. High Primary Energy Diversity .................................................................................................................. ......8
6.4. ZESA Strategic to the Southern African Power Pool.............................................................................9

7. JUSTIFICATION OF THE PROJECTS ...............................................................................................11
7.1. Power Generation Projects...................................................................................................................................12
7.2. Power Transmission Projects..............................................................................................................................12

8. INVESTMENT MODALITIES IN THE ELECTRICITY SECTOR.....................................................13
8.1. Public Private Sector..............................................................................................................................................13
8.1.1. ZESA Initiated Partnership................................................................................................................................13
8.1.2. Unsolicited Partnership......................................................................................................................................13

9. PROJECTS AVAILABLE .....................................................................................................................14
10. CONTACT DETAILS:..........................................................................................................................15

1. INTRODUCTION

The purpose of this document is to provide potential investors, business persons and others with
certain fundamental information on investing in the power sector in Zimbabwe. This document will
continuously evolve with changes that may occur in the Zimbabwe environment.

2. ABOUT ZIMBABWE

2.1. Country Profile

Land Area 390 757km2
Capital City
Commercial Language Harare
Population
Population Growth English O cial Languages 16
Currency Zimbabwe
GDP per Capita 16,558,987 million (UN 2017 estimate)
Climate
1.6% CIA World Fact Book (2018 estimate)
Economy
Dollar

US$2,234

Tropical low temperatures from April to June. It is warm to hot
from August to October. Rainy season begins in November and
end in March.

Manufacturing
Diverse, foodstu s, tobacco, textiles, clothing, paper,
furniture, wood, chemicals and metals.
Agriculture
Maize, tobacco, cotton, wheat, sugar, co ee, beef, diary,
fisheries and soya.
Main Exports: tobacco, horticulture, tea, co ee.

Mining
Gold, nickel, coal, copper, chrome, iron ore,
platinum, diamonds, lithium

Tourism
Great Zimbabwe, Kariba, Victoria Falls, Hwange, Eastern
Highlands, Mana Pools, Vumba, Nyanga, Mutare, Bulawayo,
Harare

ZESA POWER INVESTMENT ZIMBABWE 1

Main Access Ports Infrastructure
Investment Climate Transport: roads, rail, international airports

Energy
Coal, Coal-bed methane, solar, hydro, wind, petroleum

Beira, Maputo, Durban, Walvis Bay

Stable political environment centrally located in the Southern
African region.

Promulgation of the Zimbabwe Investment and Development
Agency on 7 February 2020, housing the One Stop Invest-
ment Services Centre for the ease of doing business.

Supportive investment laws and regulations.

Investment incentives.

Diverse range of labour and relatively low labour cost.

English speaking, skilled, semi-skilled and unskilled
Human Capital.

2.2. Zimbabwe Economy
Zimbabwe is an agro-based economy with a large endowment of natural mineral resources.
The country anticipates to registered a strong positive economic growth of 7.8% in 2021
mainly driven by the successful 2020/2021 agriculture season. However, high level of uncer-
tainty in both global and domestic economies owing to renewed waves and new variants of
Covid–19 continue to negatively impact on businesses, despite the macroeconomic gains
achieved which saw a slowdown in inflation.

In 2021, Gross Domestic Product (GDP) growth in Zimbabwe is projected to reach 7.8 percent, which
represents a strong rebound after a two-year recession of 2019 and 2020 (World Bank Zimbabwe Eco-
nomic Update (ZEU) of June 2021). The World Bank, in its Economic Update, notes that economic
recovery is expected to strengthen further in 2022 with GDP growing at above 5.1 percent on the back
of strengthened deployment of vaccines as well as increased and timely release of funding for agricul-
ture in preparation for the 2021/2022 agriculture season and successful implementation of projects
contained in the National Development Strategy 1 (NDS: 2021-2025).

ZESA POWER INVESTMENT ZIMBABWE 2

The Zimbabwean economy is set to further improve The Government has put in place necessary mea-
as a result of improvements in industry’s capacity sures and incentives to attract foreign investment
utilisation to above 72%. The government has also in the various sectors of the economy. To protect
launched the policy for value addition and benefici- investors coming into the country, Government
ation for the country’s primary products, especially signed a number of Bilateral Investment and
minerals. This will see an increase in demand for Protection Agreements (BIPAs) with several
infrastructure and utilities such as electricity. countries, including the Multilateral Investments
Guarantee Agency, the Overseas Private Invest-
To sustain the envisaged economic growth, the Zim- ment Corporation, and the United Nations Con-
babwean Government requires foreign direct invest- vention on International Trade Law and the New
ment inflow into the economy. York Convention on enforcement of Foreign
Arbitral Awards.

Zimbabwe is also a member to
tZhiembfaoblwloewisngalsooragmaneimsabtieorntso,
wthheichfeonllaobwliensgbeottregraanciscaetsios ntos,
gwlohbicahl eanrkaebtlse:s better access to
global markets:
- Common Market for East and
-SCooumthmeronnAMfrairckae(tCfoOrMEEaSsAt a)nd

Southern Africa (COMESA)

- Southern African Development
-CSoomutmheurnnitAy f(rSicAaDnCD)evelopment

Community (SADC)

- ACP (EU/Convention)
- ACP (EU/Convention)

- General Systems of Preferences
- General Systems of Preferences

- World Trade Organisation
- World Trade Organisation

2.3. National Vision
The ushering in of the New Dispensation in November 2017 saw the launch of Vision 2030 to chart Zimba-
bwe’s new development trajectory. The National Vision reflects the collective aspirations and determina-
tion of the people of Zimbabwe to achieve a Prosperous and Empowered Upper Middle Income Society by
2030.

The Transitional Stabilisation Program (TSP-October 2018-December 2020) was implemented as a first
step of a three-phase process to attain the country’s Vision 2030 outcomes. The TSP sought to strengthen
key priorities that form the foundation for the implementation of Medium-Term Plans. The TSP aimed at

ZESA POWER INVESTMENT ZIMBABWE 3

stabilising the macro economy and the financial sector, introducing necessary policy and institutional
reforms to transform the economy to a private sector led economy, as well as launching quick-wins to stim-
ulate growth.

Zimbabwe achieved significant progress through the implementation of the TSP which include fiscal con-
solidation, re-engagement with the international community and facilitation of investment and infrastruc-
ture development. The Government is now building on these successes on its trajectory towards the
achievement of Vision 2030 by implementing National Development Strategy (NDS 1) and NDS2 over the
period 2021 to 2030.

ZIMBABWE VISION 2030 - Maintain fiscal deficits averaging not more
than 3% of GDP, in line with SADC targets;
Upper Middle Income
- Achieve and maintain single digit inflation;
{GNI per Capita of $3.956 - $12.235}

NDS (2026 - 2030) - Increase international reserves to at least 6
months import cover by 2025;

NDS1 (2021 - 2025) - Establish a market determined and
competitive foreign exchange rate regime;

- Maintain public and publicly guaranteed
external and domestic debt to GDP at
below 70% of GDP;

TSP (2018 - 2020) - Maintain a current account balance of not
more than -3% of GDP;

Macroeconomic stability, Fiscal consolidation, Monetary Policy - Create at least 760,000 formal jobs over
Restoration, Exchange Rate Stability, Structural and Governance the five-year NDS1 period;

Reforms, Engagement and Re-engagemen, Investment - Improve infrastructure development and
Promotion and Support for the Productive Sectors investment in energy, water, sanitation,
roads, health, education, housing and social
Figure 1: Transitional Stabilisation Program amenities; and

The 2021- 2025 National Development Strategy1, sets - Accelerate value addition and beneficia
out an ambitious plan to support the recovery of the tion of agriculture and mining production.
economy. The macroeconomic objectives of the
five-year development strategy, NDS1 are: The development of key infrastructure and
provision of energy is a critical success factor
- Achieve an average annual real GDP growth rate of for the National Vision and the Government
above 5%; prioritises support of investment in these areas.

ZESA POWER INVESTMENT ZIMBABWE 4

3. OVERVIEW OF THE POWER SECTOR IN ZIMBABWE

Gabon Congo Dem Rep of Congo H Kenya 3.1. Power Supply Situation
Nairobi Zimbabwe is strategically located at
Rwanda the centre of the Southern African
Brazzavile Kishasa Burundi Power Pool. It is interconnected to
all its neighbours, Zambia, Mozam-
P Tanzania bique, Botswana and South Africa.
The country has about 2,300MW
P Dar es Salam installed generation capacity of
which 1050 MW is hydropower and
Luanda P the rest coal fired thermal. Indepen-
P dent Power Producers contribute 2
% of energy supply in Zimbabwe.
P
The country imports about 30% of
Angola Malawi its electricity requirements. For that
reason, Zimbabwe prioritises invest-
P Zambia Lilongwe H Mozambique ment in power infrastructure to
ensure sustainable self-su ciency.
P Lusaka P P
P PP T A key consideration is also the need
H P to ensure integrity of the power
transmission network to facilitate
Namibia HH Harare P power trade in the Southern African
Zimbabwe P Power Pool.
T
H

Botswana

T P
P
Windhoek
T
T T P
Gaborone T TT
Pretoria T Maputo
T TT Mbabane
Johannesburg
TT

T P Swaziland
H Hydro station
South Africa P P Pumped storage scheme
T Thermal Station
Lesotho N Nuclear Station

P

N

Cape Town H

The Electricity sector is regulated by the Zimbabwe Energy Regulatory Authority, ZERA.
3.2. Location

Zimbabwe is strategically central to the Southern African Power

Pool (SAPP). The Zimbabwe electricity transmission grid is the hub

for power trade in the region.

3.3. Regulation
The Electricity sector is regulated by the Zimbabwe Energy Regulatory Authority, ZERA. ZERA issues the
following licences in accordance with the Electricity Act:

a) Generation licence authorises the licensee to construct, own, operate and maintain a generation station
for purposes of the generation and supply of electricity to any transmission, distribution or supply licensee
who purchases electricity for resale to consumers. A holder of a generation licence includes a generating
company outside Zimbabwe that is entitled under an arrangement approved by the Authority to sell power
to Zimbabwean licensees or consumers.

b) Transmission and bulk supply licences authorises the licensee to carry out grid construction, operation,
and maintenance of transmission facilities within Zimbabwe; and to carry out the operation of an electric
power network.

ZESA POWER INVESTMENT ZIMBABWE 5

c) Distribution and retail supply licences authorise licensee to construct, operate and maintain a distri-
bution system and facilities including the connection of customers for the purpose of receiving a
supply of electricity; the installation, maintenance and reading of meters, billing and collection.

4. ABOUT ZESA HOLDINGS Other subsidiaries are ZESA Enterprises
(ZENT) whose mandate is to pursue
ZESA Holdings (Pvt) Ltd is a state-owned company non-core business activities that add value to
whose mandate is to generate, transmit, and distrib- the ZESA Group, especially the electricity
ute electricity in Zimbabwe. It has organized this man- supply chain. PowerTel Communications
date by delegation to its subsidiaries, the energy gen- (Pvt) ltd provides Information and Communi-
erating company Zimbabwe Power Company (ZPC) cation Technologies (ICT) services to the
and the Zimbabwe Electricity Transmission and Distri- ZESA Group and sells excess capacity to
bution Company (ZETDC). other external customers

MINISTRY OF ENERGY
& POWER DEVELOPMENT

Regulated

Zimbabwe Energy ZESA Rural Independent
Regulatory Holdings Electrification Power Producers
Authority
Agency

Zimbabwe Electricity Zimbabwe Power ZESA Powertel (ICT)
Transmission & Company Enterprises
Distribution (Technical
Company (Generation)
Support)

Figure 2: Electricity Sector Structure

ZESA Holdings manages the subsidiaries on behalf of the shareholder, the Government of Zimbabwe.
It provides general management requirements of the Group i.e. audit and financial support services,
legal support, business planning, group communication and infrastructure security and reliability
requirements. The company is the major player in the Zimbabwe power sector. It has 2,260MW
installed generation capacity and about 10,000GWh annual energy sales. A well-developed electricity
transmission grid spans across the country and operates at 330kV and 400kV.

5. ZESA STRATEGIC RESPONSE TO NATIONAL VISION 2030

Zimbabwe’s vision is to have a prosperous and empowered upper middle income society by 2030,

with job opportunities and a high quality of life. In achieving this goal, the nation targets to increase

the number of households accessing electricity from 52.29% in 2017 to over 72% by 2030 among other

Z gE oSaAls.P O W E R I N V E S T M E N T Z I M B A B W E 6

ZESA POWER INVESTMENT ZIMBABWE 6

Vision 2030 will be realised through two five-year
National Development Strategies (NDS), NDS1
(2021-2025) and NDS2 (2026-2030). The NDS1 has 14
national priorities and ZESA falls under the infrastructure
and utilities thematic area.

Energy in general and electricity in particular are key
enablers for achieving the macro-economic objectives
for NDS1. Other priority areas such as value addition and
beneficiation of agriculture and mining production
require supply of adequate and reliable electricity. Thus,
ZESA has a significant role to play.

ZESA has the following strategic focus areas in response to the National Development Strategy 1
(NDS1):

1. Security of Supply 5. Improved Operation E ciency
Ensuring adequate power supply through local gen- Improving coal quality, plant life extension,
eration, imports and e cient utilisation of energy adoption of new technologies, system automa-
by clients. The objective is to reduce and eventually tion, adequate maintenance and motivation of
eliminate load-shedding. Key initiatives include human capital.
plant and equipment maintenance, refurbishment
and capacity upgrading. 6. Transmission and Distribution System
Expansion
2. Funding
The funding strategies mainly centre on mineral Production of long term plan (System Develop-
based counter trade financing, backward integra- ment Plan) and network expansion and refur-
tion into mining and Debt Financing. Grants and bishment. Securing of power imports to supple-
concessional loans will be pursued, especially for ment local power generation.
projects that are not viable on debt funding.
7. Renewable Energy
3. Generation Expansion Renewable energy resources assessment,
Developing new power generation plants, life exten- deployment and integration into the business
sion of existing power plants, retooling and ensur- model. Implementation of net metering.
ing availability of key inputs.
8. Rural Electrification System Expansion
4. Revenue Assurance Electricity end loads development, increasing
Ensuring a cost reflective tari , reduction of losses, network capacity and increasing use of renew-
use of prepayment metering and reduction of theft able energy resources.
and vandalism.

ZESA POWER INVESTMENT ZIMBABWE 7

6. WHY INVEST IN THE
ZIMBABWE POWER SECTOR?

As a developing economy Zimbabwe has a high demand for
electricity which has to support the National Development
Strategy which seeks to achieve high economic growth. This
anticipated high electricity demand can be met through
exploitation of its diverse energy resources.

6.1. Current Electricity Supply Gap 2025. The country is experiencing an increase in

Zimbabwe has a power supply deficit of about 30%. demand from economic recovery across all

This is besides the fact that the industry capacity economic sectors.

utilisation is currently below 60% and the agriculture

sector is consuming only 50% of its peak energy 6.3. High Primary Energy Diversity

consumption. Zimbabwe is endowed with natural energy

resources for power generation. The country has

6.2. Growing Demand Due to Economic Growth 26 billion tonnes of coal reserves and an estimated

The Government of Zimbabwe’s policies have result- 40 trillion cubic feet of coal bed methane CBM gas

ed in significant growth in economic activities in the reserves. While CBM is yet to be exploited, coal use

country. The new demand for electricity from the has been fully exploited for various uses including

mining sector alone is in excess of 2000MW by power generation.

CENTRAL AFRICAN RENEWABLE ENERGY PROJECT (CARE)
Care Corp: CENTRAZamLbeAzi aFndRKIaCfueAHNydroR-ElEecNtricEPoWweAr PoBteLntEial ENERGY PROJECT

Zabezi and Kafue Hydro-Ele(Tchteri1c0Px oGworegersPPorotjeenctt)ial (The 10 x Gorges Project)

Batoka Gorge Kafue Gorge Existing, Current and Potential Hydro
2400 MW 990 MW Electric Power on Zambezi and Kafue

Devils Gorge Rivers
1240 MW
Lower Kafue Cahora South
750 MW 2075 MW

10 x GORGES POTENTIAL Cahora North
1200 MW

Operating = 5915 MW Mpanda
New Developing = 4000 MW
Future Gorges = 4940 MW Kariba N-S Nkuwa 1600
Total Installed =14855MW 2100 MW MW

Central Dispatch = +712MW Mupata
1200 MW
TOTAL = 15 567 MW

Boroma Lupata
450 MW 850 MW

6

Figure 3: Hydro Power Sites on the Zambezi River 8

ZESA POWER INVESTMENT ZIMBABWE

The Zambezi River Basin remains partially exploited.
- Conjuctive operation of the hydropower plants on the basin has potential to improve on available

energy for Zimbabwe and the region.

The SAPP Interconnected Grid: (The 10 Gorges Project)

RNT SNEL TANESCO
ANGOLA DRC TANZANIA

ZESCO/CEC/NEPL/LHPC/GPSL ESCOM
ZAMBIA MALAWI

NAMPOWER ZESA HCB / EDM / MOTRACO
NAMIBIA MOZAMBIQUE
ZIMBABWE

BPC
BOTSWANA

ESKOM EEC
SOUTH AFRICA ESWATINI

533 kV DC 275 kV LEC Dondo Power Station (“New”)
400 kV 220 kV LESOTHO Transmission Developments
330 kV 132 kV
110 kV At 400kV
2

Figure 4: 10 Gorges Project
The country’s renewable energy potential remains untapped. There is over 3 000MW hydropower
potential available on the Zambezi River, shared with Zambia.

Zimbabwe has an abundance of solar energy with an average solar irradiation of 16-20MJ per square
meter.

Solar energy potential is not fully exploited and the country has a target to develop 1800MW grid-con-
nected solar by 2030. The availability of large hydropower plants provides for a conducive system to
operate conjuctively with variable renewable energy

6.4. ZESA Strategic to the Southern African Power Pool
ZESA is a trading member of the Southern African Power Pool (SAPP). Zimbabwe is at the geographical
centre of the regional power pool and is inter-connected to all its four neighbours. This position makes
ZESA the power transfer corridor from the energy – rich south the north. Zimbabwe regulations allows
private players to develop power infrastructure throughout the value chain of generation, transmission
and distribution.

ZESA POWER INVESTMENT ZIMBABWE 9

WHERE ARE THE Power Generation
OPPORTUNITIES - Great potential as the country has diverse primary energy resources.
FOR INVESTMENT? - Potential to participate as a trading member of the Southern African

Power Pool.

Electricity Transmission
- Strategically central to the Southern African Power Pool (SAPP),

Zimbabwe electricity transmission grid is the hub for power trade in the
region.
- Grid extension projects to accommodate the generation expansion in
the country and regional electricity trade.

Manufacture of Electrical Equipment for Power Sector
- ZESA Enterprises has capacity to manufacture transformers and

power line equipment for the Zimbabwe power secto and region.
It is currently utilising about 30% of capacity.

WAYS TO INVEST IN THE ELECTRICITY SECTOR 5• Zimbabwe Public Investment Management
1• Financing ZESA power projects through debt Guidelines

or equity. 6• Zimbabwe Investment Development Agency, ZIDA
2• Participate in power generation as an Independent Act (Chap 14:37)

Power Producer. 7• The Public Procurement and Disposal of Public
3• Develop own power transmission infrastructure. Assets Act.
4• Partnership with ZESA (Public Private Partnership,
8• Any other related Statutory Instruments, Act or
PPP) guiding framework as may be produced by the
Government or ZESA from time to time.
6.5. Public Private Partnership Structure
The Government of Zimbabwe provided instru- 6.6. ZESA Initiated Partnership
ments for implementation of Private/Public Partner- ZESA may call for bids to go into a partnership with
ships (PPP) joint venture projects and ZESA stands interested and capable partners for implementation
guided by the same. The partnerships can be either of identified projects. This process is done in terms of
solicited for by ZESA or unsolicited, that is to say, the Public Procurement Disposal of Public Assets Act
initiated by potential partners. In all cases, ZESA will of Zimbabwe. ZESA would have carried out its own
go through a definite list of steps in fulfilment of feasibility study before entering such partnership.
normal business practice of engaging partners as
well as the requirements of the ZIDA Act. The 6.7. Unsolicited Partnership
following should be read to fully understand other In the event that ZESA receives and accepts to con-
requirements for PPP: sider an unsolicited proposal for partnership, the
steps shown in the table below will apply.

ZESA POWER INVESTMENT ZIMBABWE 10

7. JUSTIFICATION 7.1. Power Generation Projects
OF THE PROJECTS The projects range from rehabilitation of current power
plant to restore capacity and e ciency to new greenfield
Zimbabwe is presently very active in projects. The implementation of the projects will result in
promoting the investment necessary increased power supply and improved operation and
for the rebuilding and growth of its e ciency. Zimbabwe Government policy on development
economy. Infrastructure development renewable energy has resulted in ZESA identifying sites
is a priority in this endeavour. for solar PV development and carry out feasibility studies
to allow power plant construction by IPPs.

27° 28° 29° 30° 31° 32° 33°
Kariba
ZIMBABWE INTTEORZCAOMNBINEACTORS 16°
Gokwe
16° North Matambo

POWER GRIDSouth 17°

Scale 1:1 000 000 TINOTCERABCOORNANEBCATSOAR

10 0 10 20 30 40 50 60 70 80 90 100
Kilometres
Horseshoe
Area of Zimbabwe is 39 075 700 Hectares (390 757.7square kilometres) Madziva
NORTHERN Bindura
26° East Karoi REGION
17°
Mhangura

Mutorashanga Suswe

Alaska Chinhoyi Mutoko

Mazowe

INTER CONNECTOR Warren Coleford

TO LIVINGSTONE Atlanta

VictFoarlilas Batoka Zambezi Chakari Afrochine HARARE
Hydro River SMC
Norton
Pumps Monawood
18° 18°
Lusulu Selous Seki Bromley
Gokwe Chegutu Dema Marondera INTTOEMROCZOANMNBEICQTUOER
Fylde 19°
INTER CONNECTOR Nyanga
TO PANDAMATENGA Kadoma Inchope
Hwange
20°
Southern Battlefields Rusape
Energy MUTARE 21°
Sherwood B Munyati
W E Caseco Sherwood Ngezi Prop Shumba Orange 22°
Haven 132kV Sub Groove South
S19° Lupane Zimasco
Middle
KWEKWE Sabi

Zisco Bell Chivhu
T E SOUTHERN REGIONNew Lupane Gas
TISONOTBEUOTRTHSCAOWFNARINNECACAATNODRS Ripple Creek Hunters
T IONSTOEURTCHOANFNRIECCATORRoad

R N Motapa EASTERN REGIONLalapanzi Mvuma

Chertsey

REGION Shangani GWERU Indiva
Unki
Nyamandhlovu Turk
20° Tokwe Mashava Masvingo
Umguza Queens
POWER KEY
Shilo
BULAWAYO

66kV Line................................. Insukamini Springs Mimosa
Esigodini Mine
Zvishavane
88kV Line.................................

132kV Line.............................. Filabusi

Chisumbanje

Proposed 132kV Line............. Gwanda Gwanda Mukwasine
220kV Line.............................. 88kV 132kV
21° 330kV Line..............................
Triangle

400kV Line.............................. FRANCISTOWN

Proposed 400kV Line............ Mwenezi
Substation...............................
Chertsey

ZESA Area Boundary............ Mazunga
Existing Thermal Power STN.....

22° Proposed Thermal/Gas STN...... Beitbridge

South

Hydro Power STN.......................

26° 27° 28° 29° 30° 31° 32° 33° East

22° 30’ S
25°E

Nzhelele

Figure 5: Power Grid

7.2. Power Transmission Projects
The Zimbabwe power grid is critical for power trade in SAPP. Development of these projects are viable
as they facilitate the regional power trade. The discovery and production of gas in Mozambique togeth-
er with the development and expansion of hydro power capacity at Mphanda Nkuwa, Hydro Cahora
Bassa (HCB) and other power sources will see an increase in power exports from that country to the
rest of the region. This will call for expansion of the SAPP interconnected network through Zimbabwe.

ZESA is working towards a smart grid. It has plans to deploy optic fibre on power-lines. This will allow
for improved SCADA and integration of renewable energy sources. The excess optic fibre capacity can
be availed for other ICT users.

8. INVESTMENT MODALITIES IN THE ELECTRICITY SECTOR

8.1. Public Private Partnership (PPP) Structure
The Government of Zimbabwe provided instruments for implementation of Private/Public Partnerships
(PPP) joint venture projects and ZESA stands guided by the same. The partnerships can be either solicit-
ed for by ZESA or unsolicited, that is to say, initiated by potential partners. In all cases, ZESA will go
through a definite list of steps in fulfilment of normal business practice of engaging partners as well as the
requirements of the ZIDA Act. The following should be read to fully understand other requirements for
PPP:

Zimbabwe Public Investment Management Guidelines.
Zimbabwe Investment Development Agency, ZIDA Act (Chap 14:37)
The Public Procurement and Disposal of Public Assets Act.
Any other related Statutory Instruments, Act or guiding framework as may be produced by
the Government or ZESA from time to time.

8.1.1.ZESA Initiated Partnership
ZESA may call for bids to go into a partnership with interested and capable partners for implementation
of identified projects. This process is done in terms of the Public Procurement Disposal of Public Assets
Act of Zimbabwe. ZESA would have carried out its own feasibility study before entering such partner-
ship.

8.1.2.Unsolicited Partnership
In the event that ZESA receives and accepts to consider an unsolicited proposal for partnership, the
steps shown in the table below will apply.

ZESA POWER INVESTMENT ZIMBABWE 12

ACTIVITY RESPONSIBILITY PRE-REQUISITE

1. Signing of a Non-Disclosure All None
Agreement (NDA)
Prospective partner None
2. Detailed Project Proposal and
pre-feasibility study Prospective partner • ZESA due diligence
ZESA questionnaire
3. Completion of due diligence ZESA, Prospective Partner
questionnaire (DD) • Completed due diligence
questionnaire
4. Due diligence assessments and
evaluation. • Detailed project proposal
• Due Diligence assessment report
5. Board approval for engagement. • Pre-feasibility study

6. Engagement of the Ministry of ZESA • Detailed project proposal
Energy and Power Development • Due Diligence assessment report
(line Ministry) and (ZIDA) PPP • Pre-feasibility study
unit on project proposal.

7. Project bankable Feasibility Study ZESA, Prospective Partner • Approval from ZIDA

8. Project bankable Feasibility Study ZESA • Detailed project proposal
• Due Diligence assessment report
• Bankable Feasibility study report

9. Obtaining ZESA Board Approval ZESA • Detailed project proposal
• Due Diligence assessment
10. Submission of project proposal to ZESA
ZIDA for approval report
• Feasibility study report
• Full business case report

• Detailed project proposal
• Due Diligence assessment report
• Feasibility study report

11. Obtaining approval of Cabinet ZESA, ZIDA • ZIDA acceptance of proposed
Committee on PPPs ZESA project.

12. Obtaining procurement approval All • Approval by Cabinet Committee
from the Procurement Regulatory on PPPs
Authority of Zimbabwe (PRAZ)
• PRAZ Authorisation
13. Contract signing

14. Project Implementation All • Approved Contract

Figure 6: Step to follow in approving an unsolicited partnership

ZESA POWER INVESTMENT ZIMBABWE 13

@o cialZESA
www.zesaholdings.co.zw

POWER
INVESTMENT
ZIMBABWE

AVAILABLE PROJECTS / OPPORTUNITIES

PROJECTS AVAILABLE

The table on the next page shows the list of projects that are available
for investment. The listed projects have full feasibility studies and ESIA
(Environmental and Social Impact Assessment) report; with a few
having at least a pre-feasibility study.

Project Title Project Description Estimated Implementing High Level Investment
Project cost Agency Project Status Required
(US$)
Project Benefits (Committed)

GENERATION PROJECTS

Hwange 1-6 life Rehabilitation and life 450,000,000 ZPC • Procurement of Funding
Extension. extension of Hwange coal- ($310 million – Project (US$90 million)
fired power plant units 1-6 Indian LoC Management
by 20 - 25 years. $50 million – Consultant in Funding
Phased implementation Standard Bank) progress. (US$16.1
million)
Plasma Ignition Installation of Plasma • Reduction in 19,300,000 ZPC • Long lead
Combustion ($3.2 million ZPC equipment under
System (PICS) Ignition System on Boiler’s diesel fuel paid) procurement

Deka water 1 – 6 consumption 48,200,000 • Pilot project on unit
pipeline upgrade ($48.2 million – 1 commenced
Indian LoC)
• Improvement in

efficiency

Rehabilitation of existing • Restoration of • Contract awarded -

Pipeline pipeline output • Financial closure
achieved
• Increase in output

Deka water Extension of existing water • Increase in water 41,430,000 ZPC • ZPC in discussion PPP
(Under $310 with Titan Power
pumping station pumping station pumping capacity million – Indian for JV to expedite
LoC) implementation to
extension ensure adequate
water for Hwange 7
&8

Bulawayo Refurbishment of power • Plant reliability 121,000,000 ZPC • Negotiations with Funding for
Repowering ($110 million – EPC Contractor in development
plant to achieve 90 MW • Plant efficiency Indian LoC) ZPC progress costs ($11
Munyati dependable capacity and ZPC million)
Repowering 149,500,000 • Negotiations with
(100MW) refurbishment of 33kV EPC contractor in Funding
TBA progress
Munyati Solar network for evacuation of PPP
(100MW) • Evergreen Energy
additional 60 MW. engaging ZIDA for PPP
PPP
Installing CFBC boilers, • Plant reliability Grant, PPP
• Negotiations with
Rehabilitation of turbo- • Plan efficiency ZimTA for land in BOT – Funding
alternator systems and progress ZESA equity

common plant • Discussions to
include ZINWA
Construction of a 100 MW • Increase in initiated

solar PV power plant renewable energy • BOT Project
developer
Insukamini Solar Construction of a 100 MW • Increase in TBA ZPC identified
(100MW) 109,000,000 ZPC
solar PV power plant renewable energy • Feasibility study
Gairezi Hydro TBA ZPC, ZETDC update being
(30MW) • Improved energy finalised

Batoka Gorge mix
Hydro-Electric
Scheme Project Construction of a 30 MW • Clean Energy
(Bilateral with run-of-river power plant • Local community
Zambia) dam and associated Development
transmission

infrastructure.

Construction of a • Increase in

compacted concrete regional power

gravity arch dam, spillway, supply

four intakes, 2 Power • Increase in
Plants with a capacity of renewable energy
1,200MW each and contribution for
associated transmission beneficiary
lines. countries

ZESA POWER INVESTMENT ZIMBABWE 15

Competitive Procurement of 500MW • Promotion of 500,000,000 ZETDC • Sites for Solar PV IPP
procurement of identified
500MW solar PV solar PV power renewable
• Negotiation with
development by IPPs energy local authorities
in progress
• Private Sector
• Feasibility
participation in studies in
progress
electricity

supply

TRANSMISSION PROJECTS

Regional Interconnectors

ZIZABONA Component A ($33 • Increase in 76,000,000 ZETDC • Awaits Zimbabwe Funding
Zimbabwe- Country Strategy
Zambia- million): Hwange – Victoria regional power ($33 million for AfDB Board
Botswana- Approval
Namibia Falls (101 km) and Victoria trade AfDB)

MOZISA Falls – Mukuni 330 kV lines
Mozambique-
Zimbabwe- (14 km)
South Africa
1.Triangle- 1. ZISA 193,000,000 ZETDC • New business case Funding
Nzhelele 2nd being developed
Zimbabwe- Construction of 220km • Increased with EdM for Mozi
South Africa
Interconnector Triangle – South African regional power • Feasibility Studies
to be redone with
2.Orange Grove- Border 400kV Line - trade due to Eskom for ZISA
Inchope,
2nd Zimbabwe- Triangle 400/330kV increased
Mozambique
Interconnector Transformation & bays wheeling capacity
Orange Grove –
Triangle - Tokwe 2.MOZI

Construction of 63km of

400kV Triple Bison Line from

Orange Grove to

Mozambique Border

2x175MVA 330/132kV • Grid 150,000,000 ZETDC • EPC + Finance Funding
Contract signed
Transformers at Triangle & reinforcement with CAMCE in
Dec 2017
300km Triangle – Orange • Increase in
Grove 400kV Triple Bison network capacity • Funds from China
Line, upgrade of existing Eximbank

Tokwe - Triangle

Transmission Line to

operate at 330kV

(currently operating at

132kV)

Bindura – Construction and • To increase grid 32,800,000 ZETDC • EPC + Finance Funding
Contract signed.
Mutorashanga commissioning of 80.2km wheeling capacity
• Funds from China
330kV Line of 330kV (400kV for power trading Eximbank

Construction) line from

Bindura to Mutorashanga

and associated bays.

Sub-transmission Projects

Horse-shoe - • Electrification of 35,000,000 ZETDC • Phase 1: Funding Grant
Kanyemba 132 Interconnection to Funding Grant
kV transmission Construction of 135km of new community ZESCO in progress
line
132 kV line and associated development and • Feasibility studies
for 132 kV line in
substation works adjacent rural progress

areas • Awaiting Zimbabwe
Country Strategy
Atlanta-Mutoko Construction of 42km x • Grid 14,413,000 ZETDC paper for AfDB
132 kV line 132kV single circuit reinforcement to Board Approval
transmission line from increase reliability
Atlanta – Murewa and • Increase capacity
rehabilitation works on the to connect more
existing Murewa –Mutoko loads
132kV line (66km)

ZESA POWER INVESTMENT ZIMBABWE 16

Sunway City - Construction of Dema – • Supply of power 37,000,000 ZETDC • ESIA studies Funding
Dema 132 kV line financed by AfDB
Sunway City twin lynx to Special in progress

132kV overhead line Economic Zone • Under
negotiations with
complete with line bays • To serve AVIC International
Procurement and industrial,

construction of a commercial and
2x90MVA, 132/33kV residential load
substation

Insukamini- Construction of 180km • Reduction of 46,000,000 ZETDC EPC + Funding Funding
Lupane 132 kV Contract signed
Line & Insukamini – Lupane system losses with TBEA.
substation Funding from
single lynx 132kV • Increase capacity China Exim Bank.
overhead line complete to connect
with line bays. suppressed loads
Procurement and that include

construction of a agriculture
2x20/30MVA, 132/33kV

substation

Stamford - Construction of 23km • Reduction of 44,770,000 ZETDC EPC + Funding Funding
Contract signed
Westgate- Stamford – Westgate- system losses with TBEA.
Funding from
Pomona 132kV Pomona twin lynx 132kV • Increase capacity China Exim Bank.

Substation & overhead line complete to connect more

Line with line bays. load

Procurement and

construction of a

2x90MVA, 132/33kV

substation

Warren-Hopley- Construction of 8km • Increase in grid 47,560,000 ZETDC EPC + Funding Funding
Dema 132kV Warren – Seki T-off - capacity to Contract signed
Line & Hopley double circuit lynx connect more with TBEA.
Substation 132kV overhead line load Funding from
complete with line bays. China Exim Bank.

Upgrade of 32km of 132kV
line between Warren and

Dema from 91MVA to

200MVA. Procurement

and construction of a

2x90MVA, 132/33kV

substation

DISTRIBUTION AND OTHER PROJECTS

Electricity Electricity Distribution • Connection of 146,700,000 ZETDC Funding
Distribution works to connect over 305 various customers
4,000,000 - ZENT
Solar Panel 000 customers to grid electricity: - 20,000,000
Manufacturing 4,500,000
Plant agriculture, small
ZENT
Construction of primary scale mining,

distribution network commercial,

infrastructure comprising residential (urban

33kV power lines, 33/11 kV and rural)

substations and

associated equipment

throughout the country.

Set up of a 20- 80 • Skills and capacity Prefeasibility study PPP
done.
MW/Year Solar PV Panel building
Project scoping PPP Funding
Manufacturing and • Contribution to done.

Assembly line facility renewable energy

Modernizing Upgrade and modification • Efficient
production line
of distribution of existing manufacturing production
transformers
and introduction equipment and facilities for • Reduction in
of new products Copper-wound
vandalism of
Transformers.
transformers by

elimination of
New products to include copper
aluminium-wound and dry components
Type transformers

I N V EZ SE TS IAN GP OI WN ETRH EI NPVOEWS TEMR ESNETC ZT OI MRB IANB WZ IEM B A B W E 17 1

Modernizing Upgrade and • Efficient 4,500,000 Project scoping PPP Funding
production line ZENT done.
of distribution modification of existing production
transformers Funding
and introduction manufacturing • Reduction in
of new products
equipment and facilities vandalism of
for Copper-wound transformers by
Transformers.
elimination of

New products to include copper
aluminium-wound and components

dry Type transformers

DWDM Optic Deployment of 3,400km of • Quality 58,100,000 Powertel
Fibre Backbone
Optic fibre backbone and communication

related communication for grid operations

equipment on power lines • Excess capacity
countrywide
for other ICT

users

ZESA POWER INVESTMENT ZIMBABWE 18

All the projects listed in this document have feasibility studies or pre-feasibility studies. Investors
may contact ZESA for further details on the following contact details.

CONTACT DETAILS:
ZESA Holdings (Pvt) Ltd

Electricity Centre
25 Samora Machel Avenue

Harare, Zimbabwe
Tel: (+263 4) 774501/2/6/8/24/25/27/31, 774533/6/52-3,

+263 4 773302/04-10,
+263 4 773314/16/18/19/24/28-31/34,

+263 4 774491/96/98-9
Fax:(+263 4) 774542/3
Email: [email protected]
[email protected]
[email protected]
Web address: www.zesaholdings.co.zw

SUBSIDIARY COMPANIES: Zimbabwe Electricity Transmission
Zimbabwe Power Company (ZPC) & Distribution Company (ZETDC)
12th Floor Megawatt House No. 25 Samora Machel Avenue
44 Samora Machel Avenue P.O. Box 377
P.O Box MP 274 Mount Pleasant Harare, Zimbabwe
Harare, Zimbabwe Tel: (+263 4) 774508-35; 773300-30; 7744919
Tel: (+263 4) 250407-9, Fax: (+263 4) 774542
Email: [email protected]
770675, 770672 Web address: www.zetdc.co.zw
Fax: (+263 4) 794828, 702840,
Powertel Communications
794827, 794820 No. 16 Birmingham Road,
Email: [email protected] Southerton
Web address: www.zpc.co.zw Harare, Zimbabwe
Tel: (+263 242) 753147-8, 780630, 748643
ZESA Enterprises (ZENT) Email: [email protected]
No. 1 Harare Drive, New Ardbennie Web address: www.powertel.co.zw
Harare, Zimbabwe
Tel: (+263 4) 667116
Email: [email protected]
Web address: www.zent.co.zw

ZESA POWER INVESTMENT ZIMBABWE 19