Zimbabwe: Chinese firm wins bid to expand Hwange

Apr 11, 2013 12:00 AM

THE State Procurement Board has awarded the tender for the extension of Hwange Power Station to China Machinery Engineering Company, The Financial Gazette's Companies & Markets (C&M) has learnt.

Hwange thermal power station is currently using six units and the expansion would see the plant adding two more units.

The additional units would have a combined generation capacity of 600 megawatts (MW).

Zimbabwe Power Company (ZPC)'s public relations executive, Fadzai Chisveto, confirmed the development.

"The adjudication process has come to an end and last week we received the final bidding papers from the State Procurement Board. The tender for the expansion of Hwange Power Station was awarded to China Machinery Engineering Company," she told.

Also vying for the contract to expand the thermal power station was another Chinese company, Sino Hydro Corporation, which last November was awarded the tender to extend Kariba South Power Station by two more units to add 300MW to the national grid. China Machinery Engineering Company tendered its bid at US$1,38 billion while Syno Hydro Corporation's bid price was US$1,17 billion for extension of the Hwange power plant.

ZPC and China Machinery Engineering Company are now expected to sign a contract that would pave way for the commencement of expansion work.

Last year, ZPC managing director, Engineer Noah Gwariro, said work at Hwange thermal power station was expected to start during the course of this year.

"We are aiming to conclude the contract negotiations by early next year (2013). That will help us to move on and organise the funding and get the work started. I firmly believe that work at Hwange power station will start during the course of 2013," he said.

Zimbabwe is currently facing crippling power shortages with the national power demand at peak periods estimated to be at 2 200MW against available generation of about 1 000MW with the shortfall being imported from regional power utilities.

Installed capacity amounts to 1 960MW.

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