Zambia is a large, landlocked country facing daunting development challenges. Poor infrastructure, notably electricity shortages and a thin and deteriorating road network, is a fundamental impediment to releasing the country’s economic potential, making the economy more diversified and resilient and sharing the gains from growth more broadly.
The project is located in the south-west of Zambia and will consist of:
1) building of a new Livingstone 330 kV/220 kV substation;
2) the upgrade of the existing 341 km 220 kV line from the Kafue Town substation to the new Livingstone substation to into 330 kV voltage;
3) the upgrade of a 10 km 220 kV transmission line from Livingstone to Victoria Falls;
4) the reinforcement of existing Kafue Town and Muzuma substations;
5) increase of transformer capacity and establishing spare transformers for 330/220/132/88 kV voltages and
6) engineering support, environmental studies and mitigants for the project.
The capacity of the line will be increased from presently 120 MW to 360 MW. Completion of works is expected in late 2017.
The EU-AITF interest rate subsidy of up to EUR 5.2m subsidises EIB’s loan to the Republic of Zambia, which on-lends the funds to ZESCO. EIB’s loan supports the Zambian Government’s goal to ensure that a reliable supply of energy keeps pace with the anticipated growth of the economy in the country and the region. EIB also plays an important strategic role in defining the Lenders’ requirements for the organisation of the project implementation. EIB’s conditionality clauses, e.g. to address specific environmental concerns, contributes towards putting in place a framework that ensures good practice in the implementation of the project. The IRS is used simultaneously with EIB’s loan disbursements which started in Q1 2015.
Articles from the Zambian press - signature of the Transmission Line Kafue Livingstone Finance Contract: