The long-awaited $5 billion Batoka Gorge Hydroelectric Scheme (BGHES) in Zambia and Zimbabwe is facing delays in construction, which is having a significant impact on the energy needs of both countries.
The BGHES is expected to add 2,400 MW of power to the shared grid, helping to reduce the power supply deficit in the two countries.
However, delays in the construction mean that the potential of the Zambezi River as a clean energy source is not being maximized, while the energy gap continues to negatively impact the economies of both countries.
According to the Zambezi River Authority – ZRA, the BGHES the disengagement with the initially appointed project developer has caused delays as the new developer is yet to be appointed.
In an inquiry by the Zambian Business Times – ZBT, Zambezi River Authority, Chief Executive, Eng. Munyaradzi C. Munodawafa, the Authority plans to retender the project in 2024 and expects to receive bids from potential developers by April 2025, with the selection of bidders expected to be undertaken by September 2025. The estimated cost of the project is $5 billion, subject to change depending on inflation and other economic factors.
“It is anticipated that the construction of the BGHES will add 2 400Mw of power to be shared equally between Zambia and Zimbabwe. This increase in power supply would significantly reduce the power supply deficit in both countries. The delay in the construction of the BGHES means that the two countries are not maximizing the potential of the Zambezi River as a clean energy source, whilst the prevailing energy gap continues to negatively impact the performance of the two economies.”
Asked about What measures are being taken to address the challenges that have led to the delay in the construction of the power station. Munodawafa said the Authority will embark on an international competitive tendering process to procure a new developer.
“To ensure that transparency and value for money principles are upheld from the tendering stage through to the final development of the hydropower scheme, steps have been taken for the Authority to enter into partnerships with key renewable energy institutions and international financing institutions (IFIs) whose experience will contribute in respect of driving the project towards bankability and financial close. Measures will be put in place to ensure the project works are done within the timeframe that will be decided upon.”
He said the construction will start soon after reaching financial close spearheaded by a developer who is yet to be appointed. The Authority intends to retender the project within the course of 2024 and expects to receive bids from potential developers by April 2025 while the selection of bidders is expected to be undertaken by September 2025.
Munodawafa said the estimated cost of the project is 5 Billion United States Dollars. “However, this may be subject to change depending on inflation and other economic factors that may affect the cost of goods and services required for the construction of the Batoka Gorge Hydro Power station.”
The BGHES has the potential to provide significant benefits to both countries, and its completion is crucial to their economic development and progress as the two countries face the negative effects of climate change.
Batoka Gorge Hydro Electricity Scheme (BHES) is a 2.4GW hydroelectric project located across the boundary between Zambia and Zimbabwe, on the Zambezi River, approximately 54km downstream of the Victoria Waterfall.
The project is being undertaken by the Zambezi River Authority (ZRA), an entity equally owned by the Zambia and Zimbabwe governments.
A memorandum of understanding (MoU) was signed between Zambia and Zimbabwe to develop the BHES project, in February 2012.
Construction on the £4bn ($5.2bn) project was expected to begin in 2020 and targeted for completion in 2026.
