US$10 billion for power generation

Although Mangoma refused to disclose the identity of the French investors, he said the deal was almost done and their license will be ready possibly before the end of the month.

The French consortium investment is part of the US$10 billion purse secured and that is expected to be poured into the troubled power generation sector in the next four years.

The country requires at least 2 000 megawatts for domestic and industrial consumption, but is currently generating around 1 100MW, leaving the shortfall to be filled by imports.

Mangoma said: We have now secured investors for the Zimbabwe Power Company which is government owned. We have identified at least two investors in ZPC and we have already agreed as government that they can come in so that we can put in a project that includes expansion of Hwange and Kariba and possibly look at Batoka gorge.

We have already given a license to RioZim for the Gokwe Sengwa Coal fields which will produce about 2400MW and this project is expected to come in line in 2014. I have on my desk a proposal by a French consortium that wants to generate 2000MW coal fire, thermal power. Again we are going to give them a license possibly before the end of this month. So our long term is secured.

He added that RioZim will invest close to US$4 billion in the Gokwe Sengwa project. The highest offer we have seen for the ZPC project is US$4 billion and the other French investment is close to US$3 billion, said Mangoma.

Local investors were fronting international investors in the ZPC deal while a French consortium was also interested in investing in power generation.

An uncertain political environment and low tariffs have in the past put away interest in Zimbabwes power generation sector. But Mangoma said the political risk was now very low and that cost reflective tariffs were now being charged.