China Eximbank provides $30 million concessional loan for Insukamini-Lupane 88kV Transmission Line Project

Project narrative

In 2017, China Eximbank agreed — at least in principle — to provide a $30 million concessional loan to the Government of Zimbabwe for the Insukamini-Lupane 88kV Transmission Line Project. The borrowing terms of the loan are unknown. However, it is known that the proceeds of the loan were to be used by the borrower to finance a commercial contract between TBEA Co., Ltd., Zimbabwe Electricity Supply Authority (ZESA) and Zimbabwe Electricity Distribution Company (ZETDC), which was signed in 2017. The project involves the construction of an 180km, 88 kV (single lynx) transmission line from the Insukamini solar plant to a 132 (88)/33kV substation in Lupane. It also involves the construction of a greenfield Lupane 132(88)/33kV substation equipped with two 20/30 MVA trans-formers, a 132 kV incoming bay line, four 36 kV outgoing feeder bays, installation of two 10MVA 36/11 kV transformers and six 11kV feeders. There is growing load in and around Lupane where the existing 33kV network can no longer cope, and the Insukamini-Lupane 88kV Transmission Line Project seeks to address this problem. TBEA Co., Ltd. is the contractor responsible for implementation. The project has achieved a completion rate of at least 50% and it was originally expected to reach completion in 2020. Upon completion, it was expected to not only improve power supplies in the surrounding areas, but also increase network reliability and quality of power supplies as well as reduce systems losses. However, project implementation appears to have stalled (most likely because of the Government of Zimbabwe’s failure to clear arrears to Sinosure).