Mr Banda said at the launch that government recognised the important role the development of infrastructure played in the quest to create wealth and improve the livelihood of the people.
He said the launch of the project had confirmed government's commitment to executing projects that were key to the stimulation of economic growth in any country.
The energy sector, and specifically electricity, plays a critical role in facilitating growth of our economy.
In cognisance of the role that electricity plays in the sustainable growth of our economy, a number of generation and transmission projects are in the pipeline for development, Mr Banda said.
The plant is being constructed by Sinohydro Corporation of China.
He said the completion of some of the projects in the upgrading of smaller power stations would enable the country to meet the millennium development goals (MDGs) and the Vision 2030.
Other projects being implemented are Kafue Gorge Lower hydro power station, Kalungwishi and Itezhi tezhi.
Mr Banda said his government had been emphasising the need to build more power stations as well as rehabilitate and expand existing plants.
He said to make the energy sector a priority, government was in the process of concluding legislation under the Zambia Development Agency Act.
Mr Banda said government's commitment to prioritising the energy sector was evidenced by the US$ 44 million that was given to Zesco last year for the power rehabilitation project.
He said due to the generally high cost of investment required to develop power stations, government had put in place policies to encourage participation of private players in the energy sector.
Mr Banda thanked the Chinese government for facilitating the provision of 85 percent of the cost of the project through the China Export and Import Bank.
The Development Bank of Southern Africa is providing the rest of the funds.
Mr Banda paid tribute to former President Kenneth Kaunda for his foresight in having a hydro electric power plant erected at Kariba.
Minister of Energy and Water Development Kenneth Konga said an increase in the electricity tariffs this year to cost effective levels may invite investment in the sector.
He said he expected Zesco to improve its performance and service delivery.
Zesco managing director Rhodnie Sisala said the project was not only important to Zambia but to the Southern African Development Community (SADC) region.
The project would involve the installation of two extra turbines.
Mr Sisala said this would increase the total generation capacity to 1,080 mega watts.
European Investment Bank representative David White said hydro power stations were an asset, not only to the country in which they were built but also to the entire region.
Chinese ambassador to Zambia Li Qiangmin said the launch of the project was a great moment in the history of relations between China and Zambia.
Zambia Daily Maily
Post published in: Economy