China Eximbank pledges $44 million loan for 100MW Gwanda Solar Power Plant Project

On 23 October, 2015, Zimbabwe Power Company signed a $183 million commercial contract with CHiNT Electric Co. Limited and Intratrek Zimbabwe for the 100MW Gwanda Solar Power Plant Project. Then, in 2017, China Eximbank agreed in principle to provide a $44 million loan for the 100MW Gwanda Solar Power Plant Project. Sinosure agreed in principle to insure the loan; however, the project stalled following a contractual dispute that arose from delays in implementation of preliminary works of the project after Zesa Holdings (Zimbabwe’s state-owned power utility) paid in advance for the initial works, but did not meet all its obligations for the project to move forward. In 2019, Intratrek Zimbabwe (a local partner of CHiNT Electric Co. Limited), won the contractual dispute in Zimbabwe’s High Court. CHiNT Electric Co. Limited and Intratrek Zimbabwe subsequently reaffirmed their commitment to the project. In July 2020, Zimbabwe’s Cabinet approved a revised implementation plan for the project, which involves the (a) delivery of the first phase of the project (10MW) within six months of signing the financial closure agreements and meeting all outstanding conditions precedent and (b) delivery of the second phase of the project (90MW) by 2022. Under the revised implementation plan, China Eximbank is no longer a financier, and Sinosure is no longer a guarantor. Funding is being arranged from a consortium of international banks in Mauritius and Dubai. Intratrek expects to commission Phase 1 by the second quarter of 2020. The Chinese project title is 关达太阳能项目.

Number of official sources

5

Number of total sources

15