CDB and ICBC pledge to finance the 40MW Kabompo Gorge Hydropower Project

In 2015, the Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB), and Standard Bank South Africa pledged to finance the 40MW Kabompo Gorge Hydropower Project in Zambia. The total expected cost of the independent power project (IPP) was $220 million USD, but it is unclear how much each bank pledged to contribute. Copperbelt Energy Corporation (CEC) anticipated that this project would be funded with a mix of debt and equity and implemented on a build-own-operate (BOO) basis. However, there is no clear evidence that CEC-KHPL has finalized a loan agreement with CDB, ICBC, or Standard Bank South Africa. It appears that a key obstacle is absence of a Power Purchase Agreement (PPA) and off-take agreement with ZESCO. The 40MW Kabompo Gorge Hydropower Project is located in Mwinilunga District within North-Western Province. It is on the Kabompo River, about 190 kilometers from Solwezi and 32 kilometers from the Solwezi-Mwinilunga Road. This project would involve the construction of a 47 meter high roller compacted concrete (RCC) dam; construction of the underground power house, head race tunnel and tail tunnel; installation of two generation units to be driven by two (20MW) Francis turbines for a total 40MW capacity; rehabilitation of an existing access road (32km) to the project site; and construction of access roads (7km) near the project site. Through this project, it is also envisaged that power will be evacuated through a 35 kilometer-long, 132kV transmission line that will join the national grid at Kalumbila mine. Copperbelt Energy Corporation (CEC) signed a project implementation agreement on September 23, 2015 hiring Sinohydro as the EPC contractor. CEC also created a wholly owned subsidiary and special purpose vehicle (SPV) called CEC-Kabompo Hydro Power Ltd (or CEC-KHPL) to assume responsiblility for the design, financing, and implementation of the project. Works were supposed to last three years. According to a 2018 CEC Report, works were on-going and they were spending money on Kabompo but the funding source is unclear.

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