Zambia, Zimbabwe Each Commit $220m to Batoka Gorge Hydro Project

Zambia and Zimbabwe have agreed to each contribute $220 million toward construction of the delayed $4.2 billion Batoka Gorge hydropower plant that will supply electricity to both nations.

The Zambezi River Authority, a joint venture between the two countries that maintains the Kariba Dam complex and is developing the 2,400-megawatt facility near Victoria Falls, announced the commitment on Tuesday.

The contributions will include exploring equity partnerships to enhance the project's bankability, ZRA said in a statement.

At a meeting on Monday, a council of ministers agreed to establish a resource mobilisation committee to raise funds for the publicly owned dam infrastructure component.

Both Zambia and Zimbabwe suffered severe power cuts last year after a once in a generation drought curbed generation at Kariba Dam, highlighting the urgent need for additional power generation capacity.

Funding difficulties and the coronavirus pandemic have previously delayed construction of the project. Zambia withdrew from a 2019 contract awarded to General Electric and Power Construction Corp. of China, citing irregular procurement methods.

Engineering feasibility and environmental studies have now commenced, with ZRA appointing financial, technical and legal consultants to advance the project.

The Batoka Gorge project represents a critical investment in regional energy security and is expected to significantly boost power generation capacity for both countries once completed.