A new power purchase agreement has been signed for Zimbabwe’s Gwanda solar power plant.
The agreement was signed between the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) and Matshela Energy Limited, an independent power producer in South Africa. In a statement issued on August 4, 2022, Matshela Koko, managing director of Matshela Energy and a former Eskom interim chief executive, confirmed the signing of the deal.
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According to section 42 of the Electricity Act, Matshela Energy is authorized to construct, own, operate, and maintain the 100-megawatt Gwanda solar plant, in Matabele land South Province, as well as the associated battery storage facility with a capacity of 40 MWh.
This accomplishment by Matshela Energy, the Zimbabwe Energy Regulatory Authority (ZERA), ZETDC, the Department of Energy and Power Development in Zimbabwe, and other involved parties is remarkable.
Going forward
As soon as the power purchase agreement is signed, according to Koko, the company will work to reach financial close in accordance with ZERA’s timelines.
Also, the Government Support Agreement must be completed within the next 180 days from the date of signature, according to the power purchase agreement that was signed. According to Koko, the parties involved are confident that the Government Support Agreement would be completed in the allotted time.
Reported ealier
April 2018
Gwanda solar farm in Zimbabwe receives US $52m guarantee
Gwanda solar farm which is part of a series of Zimbabwe’s national strategic power projects, has received a US $52m guarantee for the 100MW envisaged to close the country’s acute shortage of power.
Chinese electrical engineering group CHiNT Electric is willing and ready to provide a guarantee covering 30% of the engineering, procurement, and construction (EPC) aspect of the contract.
In March this year, the solar project was not making progress due to the project developer facing fraudulent and corruption charges.
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The Chinese firm, that upon receipt of the advance payment demand guarantee, ZPC contractually has to effect payment equivalent to 30% of the EPC project cost.
The company’s Vice President, Dr. Lin Bosheng, told the contractor, ZPC’s acting managing director Josh Chirikutsi that CHiNT wanted to make an advance payment guarantee immediately after ZPC released part of EPC funding.
Financial closure for Gwanda solar farm
According to Dr. Bosheng, this was provided for in clause 5b of the Contract Agreement for the project.
The implementation of the solar project will also receive a massive boost following President Mnangagwa’s State visit to China.
The company …….
Source: https://constructionreviewonline.com/news/zimbabwes-gwanda-solar-plant-project-timeline/