Indian firm to help construct Zambia power station http://in.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2007-01-23T221933Z_01_NOOTR_RTRJONC_0_India-284773-1.xml&archived=False
Tue Jan 23, 2007
LUSAKA (Reuters) - A subsidiary of India's Tata Group will construct a $150-million power station in Zambia in partnership with Zambian state power utility Zesco, the companies said on Tuesday.
Zesco and South African-based Tata Africa Holdings (PTY) signed a cooperation agreement on Tuesday to build the 120 megawatt Itezhi-Tezhi station, which is needed to meet rising power demands from Zambia's mining sector and other industries.
The plant will be located on the Kafue River, about 350 kilometres west of the capital Lusaka.
"The main drivers of the power demand are the copper mines, where old mines are being recapitalised and new mines are being opened," the companies said in a statement.
Zambia and other southern African countries are on the cusp of an energy crisis that threatens to clip industrial growth and stymie plans to deliver electricity in the region, home to some of Africa's fastest growing economies.
Zesco and Tata are currently working on financing for the project, which will be constructed in three phases and will be commissioned in 2009, according to the statement.
© Reuters 2007. All Rights Reserved.