Narrative
Full Description
Project narrative
On May 31, 2018, China Machinery Engineering Corporation (CMEC) and Zambia Electricity Supply Corporation (ZESCO) Limited — Zambia’s state-owned power company — signed a $15 million supplier’s credit (bridge loan) agreement for the 15MW Lusiwasi Upper Hydropower Project. The loan carries the following borrowing terms: a maturity of 1.5 years from when the major funding comes through, an a 6% interest rate. It amount outstanding was The loan’s amount outstanding was $14,780,000 as of December 31, 2018, $14,780,000 as of December 31, 2019, $14,780,000 as of December 31, 2020, $17,041,704 (inclusive of $2,260,563 in interest arrears) as of June 30, 2021 and $6,897,015 as of June 30, 2022. The purpose of the project is to construct a 15MW run-of river hydropower plant — with three 5MW power generation units — that is located about 700 km from Lusaka, and is about 5 km upstream of the existing 12MW Lusiwasi Hydropower Station. A canal which conveys the water towards the units is approximately 4.5 km up to the Forebay from the canal intake. CMEC is the contractor responsible for implementation. On February 14, 2020, the first of the three 5MW power generation units went into operation. By February 10, 2021, all three power generation units were in operation.
Staff comments
1. This project is also known as the Lusiwasi Upper Hydropower, 15MW - Bridging Finance Project. 2. The tenure of the loan is 18 months (1.5 years) from when the loan comes into effect to when the major financing for the project comes through. It is unclear when and whether the major financing loan has been committed. Hence, AidData estimates the maturity as 1.5 years. This issue warrants more investigation.