President Hakainde Hichilema – HH has facilitated the signing of a landmark energy deal that has potential to transform the Zambian energy sector if implemented. The Zambian owned Power Utility Company ZESCO has signed an agreement with the United Arabs Emirates’ Company Masdar to develop Solar Projects worth $2 billion.
Speaking when witnessing the signing of a Memorandum of Understanding (MoU) and a landmark Joint Development Agreement (JDA) between Zambia and the United Arab Emirates Hichilema said the MoU is aimed at facilitating massive investment in renewable energy in Zambia.
He said the MoU and JDA will see ZESCO partner with MASDAR, a key investment funding entity of the United Arab Emirates (UAE), to form a joint venture in developing and deploying large scale solar projects across the country, estimated at US$2 billion.
In a statement seen by the Zambian Business Times – ZBT, the Zambian president Hakainde Hichilema said this is not a loan but a capital injection or investment in which the Zambian people, through ZESCO, will be partners in shareholding.
He said the projects shall be undertaken in a phased manner, which will commence immediately, starting with the phased installation of 500 megawatts.
Hichilema said once completed, the projects will result in an additional 2000 megawatts of electricity in the country, within the next few years.
“The historical significance of this project [if implemented] is that, in the last 58 years of our independence, the country only developed 3,500 megawatts of electricity. This remarkable investment shall bring in the much needed 2,000 megawatts, within a shorter period of time.”
President Hichilema added that with the projected increase in electricity supply, Zambians shall be assured of even more accelerated economic development and increased employment opportunities.
Some energy experts say Zambia should consider setting up a uranium powered nuclear power plant that can generate enormous amount of power that would make the country a net exporter. Zambia has reported findings of local uranium deposits that could be exploited for such an ambitious venture.