China Eximbank pledges $1.3 billion loan for Gwayi Integrated Coal Mine and Thermal Power Station Project (Linked to Record ID#62605)

Project narrative

On 3 September 2013, it was reported that China Eximbank agreed in principle to provide a $1.3 billion loan to China Africa Sunlight Energy Company (中非阳光能源有限公司 or CASECO) — a joint venture between Zimbabwe’s Old Stone Investments and Shandong Taishan Sunlight of China (the Chinese Shandong Taishan Sunlight Investment Company (山东泰山阳光投资有限公司) — for the Gwayi Integrated Coal Mine and Thermal Power Station Project. The total cost of the project is $2.1 billion, of which $1.3 billion is for integrated coal mining and electricity generation. The project is expected to generate 600 megawatts (MW). The company submitted a mining environmental impact assessment (EIA) report for the project in 2013. On August 26, 2014, Zimbabwe’s Old Stone Investments and Shandong Taishan Sunlight of China jointly signed the Joint Development Cooperation Agreement for the project. Construction works on an initial 600 MW coal station were planned for 2014, and the operation of the first 300 MW unit was planned for December 2016 and the second in 2017. However, this project ultimately did not move forward because of a $60 million unpaid debt to Sinosure. In May 2020 the Kusile Rural District Council (KRDC) called on the Zimbabwe government to revoke the mining licenses granted to Yunnan Linkun Investment Group and China Africa Sunlight Energy in Gwayi: “We think that these companies don’t have the capacity to run these mines and are probably holding onto them for speculative purposes and therefore we are calling on the Ministry of Mines to cancel their licenses." In 2014, CASECO also agreed in principle to provide a $53 million loan to the Government of Zimbabwe for the Gwayi-Shangani Dam Project (captured via Record ID#62605). The purpose of this project was to construct a dam, which CASECO would have then drawn water from to support the Gwayi Integrated Coal Mine and Thermal Power Station.