Itezhi Tezhi Power Company
This summary covers equity investments by The Tata Power Company Limited into Itezhi Tezhi Power Corporation Limited (“ITPC”). The investor has applied for a MIGA guarantee of up to $29.1 million for a period up to 15 years against the risk of expropriation; transfer restriction, breach of contract, and war and civil disturbance.
The proposed project consists of the development, construction and operation of a 120-megawatt hydropower station in Itezhi Tezhi, Zambia. The hydropower facility is situated on the Itezhi Tezhi dam along the Kafue River, and consists of a waterway tunnel, two 60-megawatt turbine generators, and interconnection facilities. The electricity generated from the plant is connected to an already existing transmission line to Lusaka.
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.
Hydropower accounts for approximately 95 percent of Zambia electricity mix. Despite having access to this massive hydrological resources, the country still suffers from an electricity supply deficit and has been relying on expensive electricity imports from the Southern African Power Pool (SAAP) to meet its domestic energy demand.
While the country has so far harnessed about 2,300-megawatt from hydropower sources to meet its current electricity demands, Zambia still has the potential resources to substantially harness its hydropower production capacity. This project is expected to be the addition of much-needed generation capacity for improved energy supply and economic growth. Achieving increased capacity would assist the country in meeting its domestic energy needs and, in addition, give Zambia the opportunity to export electricity to the region.
Supporting the development of this hydropower project fits in with the Government of Zambia’s National Energy Plan of helping develop clean, renewable and low-cost electricity in the country, and private sector participation is critical in realizing this vision. In addition, ITPC is registered under the United Nations Clean Development Mechanism (CDM).
MIGA’s support for this project is aligned with the agency’s priorities of supporting investments into countries eligible for financing from the International Development Association, as well as projects that have a positive effect on climate change.