Zambia and Germany sign 30 million loan for Chishimba Falls power station
Germany and ZESCO signed a 30 million Euro (approx. ZMW 380 million according to the current exchange rate) loan agreement for the rehabilitation and expansion of the Chishimba Falls hydro power station in Kasama, Northern Province. The contract marks another milestone in the cooperation between Zambia and Germany in the electricity sector and will be a major benefit to Northern Province.
The agreement covers a concessional loan by the German Development Bank KfW to ZESCO of a financial volume of 30 million Euros. It complements a grant of 11.5 million Euros that has already been committed to Zambia by the German government within the scope of a financial agreement, signed in November 2015.
Enlarge image Representatives of the German government, KfW and ZESCO handing over the loan agreement (© German Embassy)
Through the upgrade, the capacity of Chishimba Falls hydro power station will be increased from 6 to approximately 15 MW which is a big step to respond to the electricity challenges in the country as well as the increasing electricity demands of Zambia’s growing economy. The project improves people´s living condition in the region by providing the basis for a better access to electricity and the expansion of connections. Positive impact is expected on social services, such as schools and hospitals, but also irrigation in the agricultural sector which will augment the yields of farmers in Kasama. In addition, the improved supply of electricity is expected to foster investments in this fertile region and can therefore lay the ground for economic growth, job creation and poverty reduction.
Germany will continue its cooperation with ZESCO and the Ministry of Energy and Water Development on a number of other projects to improve Zambia´s energy situation and provide the country with a reliable, economically viable and clean energy supply.