Agence France Presse reports that the China Development Bank has agreed to offer USD1 billion loan to Zambia to help the country construct a hydropower plant and it has recommended a Chinese company for the construction of the project.
AFP cites Jiang Chaoliang, the president of CDB, as saying that Sinohydro Corporation has expressed its interest in developing the USD1.5 billion power project. Jiang also stated that Sinohydro Corporation is experienced in undertaking construction tasks in overseas countries and that it is fully capable of handling this project.
The Kafue Gorge lower Hydropower Plant project in Zambia reportedly involves a total investment of USD1.5 billion. Construction of the project will be commence in 2011 and it is expected to be completed in 2012, bringing a 60-megawatt increase in the country's power generation capacity and reducing the number of power shortage.
CDB has helped to finance a number of projects in Zambia. The Chinese bank has said it could provide Zambia with financing of up to USD1.4 billion for various projects, including USD1-billion for the Kafue Gorge station.
