Zambia and Zimbabwe are ramping up efforts to attract investment for the long-awaited $5 billion Batoka Gorge hydropower project by revisiting a controversial proposal to tap into water from the Democratic Republic of Congo.
The Zambezi River Authority, a collaborative agency between the two countries responsible for overseeing the Kariba Dam, has established a dedicated team to engage potential investors for the proposed 2,400-megawatt plant. CEO Munyaradzi Munodawafa outlined that the resource mobilization initiative aims to secure funding within a timeframe of 12 to 18 months, contingent upon investor confidence, market conditions, and ongoing support from the governments of Zambia and Zimbabwe.
Originally slated to commence construction in 2020, the Batoka Gorge hydropower project encountered setbacks due to the COVID-19 pandemic and challenges in securing financing, as reported by Bloomberg. In a significant development last year, Zambia terminated a contract awarded in 2019 to General Electric Co. and China’s Power Construction Corp., citing procurement irregularities.
Debt challenges loom over the project, with Zambia and Zimbabwe targeting the selection of new bidders by September 2025. However, fundraising endeavors are complicated by the financial predicaments of both nations. Zimbabwe grapples with $21 billion in debt, while Zambia remains in default and is in the midst of negotiating a debt restructuring agreement, five years after missing loan payments.
To enhance the capacity of the Kariba Dam and mitigate the risks posed by erratic rainfall patterns attributed to climate change, Zambia and Zimbabwe are contemplating a bold strategy: diverting up to 16 billion cubic meters (4.3 trillion gallons) of water annually from the Congo River. While this move could help stabilize inflows into Lake Kariba, the world’s largest man-made reservoir, it presents challenges such as the substantial energy requirements for pumping water uphill and navigating challenging terrain.
Lake Kariba, currently a vital source of approximately half of the electricity for both countries, has faced diminished inflows due to recurring El Niño-induced droughts. Additionally, exceeding agreed water usage quotas has placed additional strain on the dam.
In conclusion, the efforts to revive the Batoka Gorge hydropower project underscore the commitment of Zambia and Zimbabwe to harness their hydroelectric potential and address energy needs. By exploring innovative solutions and engaging with potential investors, the two nations aim to propel this crucial project forward amidst formidable challenges.
