A FIVE-MEGAWATT hydropower project was commissioned at Mutirikwi Dam on Saturday, with officials emphasising the potential of public-private partnerships (PPPs) in tackling the country’s energy challenges.
The project was financed through a mix of local pension funds and foreign capital, providing the much-needed boost to the country’s power generation capacity.
Old Mutual Zimbabwe chief executive Samuel Matsekete outlined the importance of PPPs in the capital intensive sector.
“The completion of the Great Zimbabwe Hydro Power Plant demonstrates the power of collaboration in driving economic development,” Matsekete said.
“Old Mutual invested in the plant through its life assurance arm and recently launched a US$100 million private equity fund targeting renewable energy projects.”
Other investors in the project include the Public Service Pension Fund, ZB Financial Holdings, Frontier Energy, MOL Power and the Danish Investment Fund.
Local contractors JR Goddard and Masimba Holdings also played key roles during construction.
Co-founder and executive director of Great Zimbabwe Hydro Power and MOL Power, Memory Mashingaidze, expressed hope that the Great Zimbabwe Hydro Power Plant would inspire similar projects across the country.
“We are optimistic as we transition from construction to operation,” she said.
Frontier Energy founding partner Kim Gredsted echoed similiar sentiments, saying: “We are thrilled to contribute to Zimbabwe’s power generation capacity. This is just the beginning of our journey to creating more renewable energy projects in this beautiful country.”
The plant, featuring two 2,7MW Francs turbines, delivers a total output of 5,4MW.
Zimbabwe has for long been struggling with a power deficit compounded by the El Niño-induced drought as well as years of underinvestment in new generation projects.