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Bulawayo Thermal Power Station

Brighton Gumbo, Business Reporter
THE upgrading of the Bulawayo Thermal Power Station has been set for the first half of 2016.

The government has already secured an $87 million credit line from the Export-Import Bank of India to finance the upgrade.

The plant was set up in 1947 as an undertaking by the municipality of Bulawayo with an installed capacity of 120MW but can now only generate 30MW due to aged infrastructure.

The main materials needed for the generation of electricity are coal, water, chemicals, oil, greases and spare parts for maintenance.

Zesa spokesman Fullard Gwasira yesterday said the upgrading exercise would take two years to complete.

He said the exercise would add 90MW to the national grid from its current generation.
“The project is expected to go to tender on the Indian market in December 2015 with actual works having been proposed to commence in the first half of 2016,” said Gwasira.

He said the renovation will involve replacement of obsolete chain grate boiler technology with circulating fluidized boilers (CFB), a new form of technology that burns various grades of coal more efficiently.

“Other works will involve the refurbishment of turbines and generators as well as the balance of plant, thus, enhancing operations at the small thermal power station,” Gwasira added.

“Some of the advantages, which will be realised from the repowering exercise include less carry-over of unburnt coal as well as reduced emissions into the atmosphere.”

He said the addition of 90MW will also lead to a reduction in load shedding, which will have a positive impact on industrial productivity.

Gwasira added that the project will create employment to the Bulawayo community.

The signing ceremony for the credit line was done on October 27, 2015 between the government of Zimbabwe and the Export and Import Bank of India.

Finance Minister Patrick Chinamasa represented Zimbabwe while the Export-Import Bank of India was represented by its chairman and managing director Yaduvendra Mathur.

The credit line has a tenure of 13 years, made up of a 10-year repayment period and three years as grace period with an interest rate of two percent per annum.

The loan comes with a commitment fee of 0,5 percent and a management fee of 0,5 percent.

Minister Chinamasa said implementation of the project would improve the supply of electricity, thereby boosting economic performance as it reduces the cost of production and reliability of power.

To date the Exim Bank has extended several loans to Zimbabwe including a $49, 9 million facility for the purchase of vehicles for the Hospitality and Tourism Industry Ministry and $13 million to Hwange Colliery Company for the purchase of mining equipment.

The bank has also provided a loan of $28 million for the upgrading of Deka pumping station to support the cooling system of Hwange Thermal Power Station.