Chinese firm plans $3.5 bln Zimbabwe power plant -report

China's Guangdong Bureau of Coal Geology plans to invest $3.5 billion to build a 1,200 megawatt thermal power plant in Zimbabwe, local media reported on Tuesday.
The southern African country currently generates about 1,000 MW of electricity, half of its peak demand, and is battling frequent power cuts which have affected industry and mines.
A delegation from the Chinese company is currently visiting Zimbabwe to explore opportunities in the power sector, the state-controlled Herald newspaper reported.
"We came here to observe and study the possibility of building a thermal power plant," Mu Yong, a director at the Chinese firm, was quoted as saying. "Our proposed budget is about $3.5 billion for a 120 million watts plant."
In July, Energy Minister Elton Mangoma told parliament that China Railway International, a subsidiary of China Railway Group and Zimbabwe's state power utility ZESA were planning to jointly run a coal mine that would supply a proposed 1,000 MW thermal power station.
Finance Minister Tendai Biti has said Harare was negotiating with Beijing for a $350 million loan to expand its Kariba South power station to provide an additional 300 MW of power to the current 750 MW, as Chinese interest in Zimbabwe's power sector grows.
China's Sino Hydro is the sole bidder for the Kariba South project.
HARARE (Reuters)