Planned to be developed in four phases in Binga, the power plant is expected to help meet the growing power demand in the country by generating 2000MW.
The country currently has power generation capacity of 1,100MW even as the demand remains at around 2,200MW.
Construction of the project is expected to commence in early next year.
PER Lusulu Power Pan-African Energy Resource chairman Stuart Perry said that the first phase is a 600MW coal fired plant.
Planned to be completed in 2019, the first phase of the project includes construction of roads, transmission lines and related infrastructure.
The power plant will source coal from the surrounding concessions to generate power, which will be fed onto the national grid with surplus likely to be exported.
Earlier this year, power utility Zimbabwe Power Company (ZPC) had proposed its plan to invest $5bn to construct 3,500MW of new power plants in the country, reported Reuters.
