Development of the 118.4MW Hydro Electricity Plant and Associated Transmission Facilities in Zambia

Mulembo Lelya Hydro Electric Power Limited (MLHEPL) is a limited company by shares and owned by AFI Zambia Ltd, Mchimadzi Hydro Electric Ltd, Engineer Ezekiel Kasaro and Dr. Alick Mwanza. This project involves the development of the 118.4MW MLHEP Station which is designed to exploit the energy potential of the Mulembo River in Mkushi and Luano Districts and Lelya River border of Nyimba and Serenje Districts. The gross head of the two rivers is approximately 450m and the proposed layout will include a dam, a water transfer scheme from Lelya to Mulembo River leading to the main hydropower plant. A small hydropower plant will be built at dam toe which will exploit the head created by the reservoir with an installed capacity of 7MW. The dam provides significant plant flexibility and includes possible peak power production, which could be further enhanced by integration of the hydro power with wind and solar energy. The duration of the construction has been estimated on the basis of a typical specialized contractor’s standard timeline to take 42months. The Project economics show competitive tariffs to off-takers and IRR to investors averaging 16%, in US Dollar terms. The Project is anticipated to generate up to 451 gigawatt-hour of electrical energy per year which will be injected into the 330KV grid at Pensulo Sub-Station through a 120km, 220 kV transmission line and the power will be taken by any potential bankable off-taker. The target market for the power is the Zambian market and the Southern Africa Power Pool (SAPP). All the critical studies have been completed and the 3 major milestones to get the Project to financial close are the EPC contract, PPA and signature of the IA. The project cost including the transmission line to evacuate the power to the Pensulo sub-station is estimated at US$285 million. The project is open to FDI through a minority or majority stake, or through a JV or PPP. This project is situated on the border of the Central and Eastern Province.

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