Batoka Gorge Hydro Electric Power Scheme

Construction of 2,400 MW Batoka Gorge hydro-electric power plant and dam in the central portion of the Zambezi River Basin, extending across the international boundary between Zambia and Zimbabwe. The project comprises a 181 m high, 720 m roller compacted concrete gravity arch dam, radial gated crest type spillway, four intakes in the reservoir, two surface power plants, 6 turbines and transmission lines.

DESCRIPTION

The proposed BGHES is a bi-national hydro power project to be located approximately fifty-four (54) kilometres downstream of the Victoria Falls and will extend across the international boundary between the Republics of Zambia and Zimbabwe.

Through several subsequent studies and analysis (1981,1992-1993, 1998 and 2015) the current technical configuration for the BGHES comprises:

• 176m high, 720m crest length Roller Compacted Concrete gravity arch dam;
• Radial gated central crest spillway;
• Two surface power plants, one on either side of the river bank, each with a capacity of 1,200MW, giving a combined capacity of 2,400MW;
• 6 x 200MW Francis turbines in each powerhouse;
• Four water intakes delivering water through 4 tunnels (each approximately 1km in length) to the two surface power plants downstream of the dam;
• Diversion tunnel
• Switchyards for both power plants
• Construction of the staff townships with social amenities and office complex for the Authority and Power utilities on Batoka North and Batoka South.
• The staff townships will initially be permanent construction camps and located one on the north bank of the dam (in Zambia) and the other one on the south bank (in Zimbabwe).

Single trasmission lines in Zambia (directed from the Project) will be located as follows:

• 2 x 55km of 330kV, Single Circuit Overhead Transmission lines between Batoka North Bank Power Station and Mukuni Substation, Livingstone.
• 1 x 170km of 330kV, Single Circuit Overhead Transmission Line between Batoka North Bank Power Station and Muzuma Substation, Choma.
• 2 x 230km of 330kV, Single Circuit Overhead Transmission Lines between Batoka North Bank Power Station and Nambala Substation, Mumbwa.

Single trasmission lines in Zimbabwe (directed from the project) will be located as follows:

• Batoka North and Batoka South Interconnector (2 x 400kV);
• BGHES to Victoria Falls (1x 400kV x 30km) in Zimbabwe  complete with 2 x 400kV line bays;
• Victoria Fall to Hwange (1 x 400kV x 55km) line complete with 2 x 400kV line bays
• Victoria Falls 400/(132)88kV Substation complete with 4 x outgoing (132)88kV line bays
• BGHES to Chakari (2 x 400/330kV x 400km) in Zimbabwe complete with 4 x 400kV line bays.
• Chakari to Selous (1 x 330kV x 70km) line in Zimbabwe complete with 2 x 330kV line bays The line will be 400kV construction but operating at 330kV. 
• Selous to Dema (1 x 330kV x 95km) line in Zimbabwe complete with 2 x 330kV line bays. The line will be 400kV construction but operating at 330kV. 
• All lines shall come with 2 x Earthwire peaks ( 1 x 48 Core OPGW and 1 x GSW)

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OBJECTIVES AND RATIONALE

PROJECT RISKS

PROJECT ECONOMICS

• NET PRESENT VALUE: 0.00

• COST BENEFIT RATIO: 0.00

• FINANCIAL INTERNAL RATE OF RETURN (FIRR): 0.00

• ECONOMIC INTERNAL RATE OF RETURN (EIRR): 0.00

• COMMENTS ON ECONOMICS:

PROJECT FINANCING

World Bank

OPERATION AND MAINTENANCE

OVERALL COST: 0.00

ANNUAL COST: 0.00

COMMENTS ON FINANCE:

USD 6million financing for preparatory activities secured

• Funding not adequate and request for additional funding made to World Bank (CIWA) • WB, AfDB, DBSA, Standard Bank and Chinese Government signaled funding readiness

• CIWA allocated finance to the project through a grant of USD 6 million. • Council of Ministers approved a commercial structure for the project in December 2016.

• Legal diagnostic assessment, legal framework, economic analysis, solicitation strategy and market sounding report produced. A high level international investor conference was held in Zambia during March 2017 to mobilise resources for the project. • Mobilisation of funding to be finalised following the completion EFS, ESIA and LFTA services.

Project being considered under a BOT model with the two Governments bringing in Equity in the project with the Developer expected to secure at least 5% contribution from local financial institutions.

2013: In order to proceed; theFeasibility Study (1993 and updated2009) and EIA (1993, updated in 2009)need to be updated. 2014: ZRAappointed a consultant to update theEngineering Feasibility Studyprepared in 1992. 2015: Constructionschedule unclear; implementation in5–6 years. Tendering for Consultantscompleted for new studies, namely: •Engineering Feasibility Studies(Pietrangeli Consulting Engineers) •Environmental and Social ImpactAssessment (ESIA) Studies(Environmental Resources ManagementSouthern Africa) • Advisory Services(financial, legal) (Ernst & Young)2016: • A Commercial Options Analysiswas prepared by EY in 2016 thatincluded a preferred commercialstructure for the Project based oninternational market soundingsundertaken. • Project overview andmarket sounding questionnaireproduced in July 2016. • Full statusreport for technical, environmental,social, economic and legalrequirements produced in September2016. 2017: • Engineering FeasibilityStudies (EFS): Current review andupdating of the is expected to becompleted by the end of 2018. •Environmental and Social ImpactAssessment (ESIA) studies: Currentlybeing undertaken by ERM, and areexpected to be completed by the endof 2018. • Legal and FinancialTransaction Advisory (LFTA) Services:A consortium of EY, Tata ConsultingEngineers and Webber Wentzel has beenappointed to provide transactionfinancial and legal advisory servicefor the development of the project-to be completed by the end of 2018. -Final project overview document atpre-feasibility level. - Preparatoryactivities will be followed bymobilisation of funds and procurementof developers/ contractors.Thereafter, construction works will commence leading to commissioning ofthe Project. - An ImplementationAgreement is currently beingdeveloped which will provide a directcontractual obligation andundertaking between the Government ofZambia and Zimbabwe and each SPV.2019: The project preparatory studiesand associated activities havereached an advanced stage. There aretwo preparatory studies currentlyongoing and two consultancies underprocurement namely: • Updating of theEngineering Feasibility Studies(EFS). The Consultant has submittedthe draft feasibility studies andexpected to issue the finalfeasibility studies by August 2019. •Environmental and Social ImpactAssessment (ESIA) Studies TheConsultant has submitted the draftEnvironmental and Social ImpactAssessment reports with associatedManagement Plans. The next stage isthe disclosure phase and finalisationof the studies. The final submissionis expected in August 2019 • Legaland Financial Transaction Advisory(LFTA) Services The procurement ofthe replacement Consultant isunderway. The submission of RfPclosed on 23rd May 2019 with three(3) consultants submitting theirproposals. The Technical Evaluationwas completed on 31st May 2019 whilethe Financial evaluation wasscheduled to be completed by 18thJune 2019 • Procurement of theEngineering and ESIA Consultant forAdditional Transmission LinesFollowing the design optimization forBGHES which saw an increase infacility capacity from 1600MW to2400MW, it became necessary toincrease the transmission capacity ofthe project to evacuate power toNational Load centers. Theprocurement of the Consultant toundertake the studies for theadditional scope is progressing well.The RfP was issued to the shortlistedConsultants on 22nd May 2019 with a closing date of 21st June 2019: •Procurement of the BGHES DeveloperThe procurement of the BGHESdeveloper has reached an advancedstage with the RfP having been issuedto three shortlisted bidders on 7thJune 2019 with closing date of 13thSeptember 2019. It is expected thatthe successful developer will beselected within 2019.

STUDIES

PROJECT STAKEHOLDERS

Project Implementer

African Development Bank

Continental Coordinator

African Union Development Agency

Sectoral Organisation

Eastern Africa Power Pool

Regional Coordinator

Southern African Development Community

Sectoral Organisation

Southern African Power Pool

Preparation Funder

World Bank

National Coordination

Zambia - Ministry of Energy

National Coordination

Zambia - Ministry of Housing and Infrastructure Development

National Coordination

Zambia - Ministry of Transport and Communications

Project Implementer

Zambia - Zambezi River Authority

Lead National Agency

Zambia Electricity Supply Company

National Coordination

Zimbabwe - Ministry of Energy and Power Development

National Coordination

Zimbabwe - Ministry of Transport and Infrastructural Development

Lead National Agency

Zimbabwe Electricity Supply Authority

Sectoral Organisation

Zimbabwe Power Company

CONTACTS

Munyaradzi Munodawafa-munodawafa@zaraho.org.zm

David Mazvidza-mazvidza@zaraho.org.zm

Ezekiel Kasaro-Kasaro@zaraho.org.zm

Mr. Edvan Moyo -edmoyo@sadc.int

CONTRIBUTION TO 2030 AGENDA