TATA Itezhi-Tezhi HPP

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The Itezhi-Tezhi hydropower station is a 120 MW facility located in the Itezhi-Tezhi District. The Itezhi-tezhi dam, built as a storage reservoir for the existing Upper Kafue Gorge Hydro (UKGH) Power Station, is located on the Kafue River about 230 km upstream from the existing Station. The Zambian government granted a 25-year Power purchasing Agreement to the Itezhi-Tezhi Power Corporation (ITPC), a Joint Venture Company established by the state owned Zambia Electric Supply Corporation (ZESCO) and TATA AFRICA HOLDINGS LIMITED (TATA). ITPC will build, operate and transfer a hydroelectric power plant with 2 x 60 MW at the Itezhi-Tezhi dam. The plant is scheduled to begin commercial operation in 2014. The EPC contract was awarded to Sinohydro on a turnkey basis. The turbine and generator units were supplied by Alstom under a contract worth $26.25 million. The PPA tariff was to be USD 8.51 cents/kWh, under a three-year multi-tariff framework. The US$239.5 million project cost, split between $71.7 million in equity and $167.8 million in debt. The debt will be supported by a US$29.04 million loan from Exim Bank of India agreed in 2010, the remaining $138 million in debt is divided equally between the AfDB (lead bank), PROPARCO, FMO and the Development Bank of Southern Africa (DBSA) in 2011, of $34.57 million each. A Single EPC contract has been signed with Chinese contractor Sinohydro, after a competitive international bidding process. Equity was contributed by TATA ($35.86 million) and ZESCO ($35.86 million). ZESCOs equity was funded via EIB and ADF ($17.8 million each). Project has an IRR of 16.2%. Average operating costs were USD 2.7 cents/kWh, for ZESCO in general. http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Zambia%20-%20AR%20-%20Itezhi-Tezhi%20Hydro%20Power%20and%20Transmission%20Line%20Project%20-%20Rev%201.pdf http://clairemchapman.wordpress.com/2011/08/31/kafue-gorge-hydro-power-station-zambia/