IPPs, many of which require foreign cash to fund the development of solar energy plants, have cited the inability to remit dividends and service foreign loans due to Zimbabwe’s chronic foreign currency shortages as key investor concerns.

IPPs, many of which require foreign cash to fund development of solar energy plants, have cited the inability to remit dividends and service foreign loans due to Zimbabwe’s chronic foreign currency shortages as key investor concerns. Ncube said the government was guaranteeing viable tariffs and power purchase agreements to allay the IPPs’ fears.
“A key ingredient to the successful implementation of the solar IPPs projects is a bankable government implementation agreement with an economic tariff,” Ncube said in a statement. He added that the central bank would also guarantee the payment of dividends and foreign loan repayments to external investors and lenders.
Ncube said the guarantees would cover 27 solar power projects with sizes ranging from 5MW to 100MW and a cumulative capacity of 998MW at a cost of $1 billion.
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