The National Pension Scheme Authority (NAPSA) has signed a financing agreement for the construction of the Maamba Collieries power plant’s phase two, to ensure a return on investment for the scheme’s sustainability.
The estimated $400 million United States Dollars project represents the Authority’s second investment in power generation project, following the completion of the 750 megawatts Kafue Gorge Lower Hydro Power Station which required an investment of $190 million United Staes Dollars.
Speaking during a media briefing in Lusaka today, NAPSA Board of Trustees Chairperson, Shipango Muteto, said the project will be financed by debt of about $300 million United States Dollars and equity of $100 million United States Dollars.
“The Authority has signed a financing agreement with Maamba Collieries Limited to invest up to $200 million United States Dollars in form of debt financing towards the project. The debt balance of $100M United States Dollars will be financed by other local investors”, said Mr. Muteto.
Meanwhile, Mr. Muteto said the loadshedding situation calls for drastic and immediate action for the country to continue its economic recovery path and for households to return to their normal lifestyles.
He said the project will reduce the current loadshedding and bring about stability in power supply as it focuses on alternative energy sources, with a particular emphasis on solar power.
Mr. Muteto also said the project is expected to create about 1,200 jobs during the construction period and about 400 direct jobs during the operational phase.
By Margaret Mwanza
