AfrElec: Zambia pulls out of $5bn contract to build 2,400-MW hydropower project

Zambia has cancelled a $5bn contract to build a 2,400MW hydropower plant south of the country, questioning the project cost, local daily the Lusaka Times writes.

Zambia and neighbouring Zimbabwe awarded a contract to General Electric and PowerChina in July 2019 to build the facility at a gorge along the Zambezi River, which forms the African countries’ common border.

However, Peter Kapala, Zambia’s energy minister, said proper procurement methods were not followed when the deal was struck.

“We are disengaging from that contract and we hope to re-advertise it and revisit everything that was agreed to before,” he is quoted as saying. “Mainly, it was because of the cost, it was just too much.”

Neither General Electric, the main contractor, nor PowerChina immediately responded to a request for comment from Lusaka Times.

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