Zesco, Zambia’s state-owned power utility company, has signed a Power Purchase Agreement (PPA) with Integrated Clean Energy Power Company Ltd (CiEG), a subsidiary of China Huadian Corporation, to produce 2,400 Megawatts of renewable energy estimated at US$3.5 billion.
This agreement with Zesco will be rolled out in phases of 600-800MW over a 3-year period in 4 provinces beginning this year with 300mw in Southern Province and 300mw in Central Province.
This sizeable foreign direct investment (FDI) from China into Zambia is a testament to the reset and enhanced relations between the two countries for mutual benefit, which dates back to the two founding fathers; Chairman Mao and Dr. Kenneth Kaunda.