Copperbelt Energy Corporation (CEC) has signed a memorandum of understanding (MoU) with Africa Finance Corporation (AFC) to invest $1.2bn for the development additional power stations at Kabompo and Luapula hydro projects inZambia.
As per the MoU, CEC will develop the Kabompo Gorge Hydro Power Project in North-Western Zambia with an investment of more than $150m and the Luapula Hydro Schemes in Luapula Province with over $1bn investment.
Other African countries will also be covered under the new agreement signed by both parties.
Africa Finance Corporation president Andrew Alli was quoted by allafrica.com as saying that more than $1bn on the various projects in Luapula Province which was divided into five components and to be developed in stages.
Copperbelt Energy Corporation executive chairperson Hanson Sindowe told the website that when fully constructed, the Luapula projects would generate as much as 800MWof power which would all be used to meet power challenges in the country.
Work on the Kabompo project is slated to begin this year and is expected to complete in three years, while the Luapula Province project work will start nest year and is expected to take six years to complete.