Iran to Finance Zimbabwe’s Power Project

Iran to finance Zimbabwe’s power project

HARARE, July 28 (Xinhua) — Zimbabwe’s power utility Zesa Holdings Limited has signed a joint venture agreement with FARAB Co. of Iran to finance the expansion of Kariba South Power Station, local newspaper The Herald reported on Thursday.

The accord signed last week showed that FARAB has offered to pump in at least 120 million US dollars in a joint venture deal worth 260 million US dollars.

The Kariba program requires 200 million US dollars to see it to completion in four years’ time.

Under the deal, the Zimbabwe Power Company, a Zesa Holdings’ subsidiary, will retain 100 percent ownership of the Kariba power station, and in return offer the contract for construction and development of the station to FARAB.

FARAB has also agreed to an insurance cover amounting to at least 3 percent of the total project costs.

FARAB has more than 10 years of experience in designing, supplying and managing large-scale hydro-electricity power stations with a wide range of complexity.

FARAB will offer full engineering, procurement and construction services on a turnkey basis and is a key power company in Iran.

Zesa Holdings indicated earlier this month that it required at least 2 billion US dollars to undertake various power generation projects during the next five years.