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Stanbic Bank Zambia and the Development Bank of Southern Africa (DBSA) have been appointed to arrange debt financing for the proposed US$600 million Ngonye Falls Hydropower Project, a 180-megawatt (MW) power plant planned for Western Province.
The two financial institutions signed a mandate agreement with Western Power Company (WPC) during the Zim-Zam Energy Summit in Livingstone, appointing them as mandated lead institutions responsible for structuring and arranging financing for the project.
The financing will cover the hydropower station and a 110-kilometre, 220-kilovolt transmission line to connect the plant to the national electricity grid.
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According to a statement issued on Monday, the project is expected to strengthen Zambia’s electricity generation capacity and improve power supply to Western Province, which currently depends on a 66kV transmission line constructed in 1972.
Speaking during the signing ceremony, Standard Bank Head of Project Finance, Sherill Byrne, said the investment would help address growing demand for reliable electricity, particularly from the mining and industrial sectors.
“The Ngonye Falls Hydropower Project is an important investment in Zambia’s energy future. As demand for reliable power continues to grow, particularly from the mining and industrial sectors, the development of new generation capacity is critical to supporting economic growth and enhancing regional energy security,” Byrne said.
She said hydropower remained an important source of renewable baseload electricity, supporting the transition to cleaner energy while meeting the needs of strategic economic sectors.
Byrne said bank’s participation reflected its commitment to mobilising capital for infrastructure projects capable of delivering long-term economic benefits across African markets.
DBSA and WPC described the mandate agreement as a significant milestone towards securing financial close and commencing construction.
The project is being jointly developed by African Power Projects (APP), the Private Infrastructure Development Group (PIDG) and Lunzua Power.
Construction is expected to begin in 2027, following financial close and completion of the remaining development activities, with the project expected to take just under four years to complete.
Once operational, the 180MW plant is expected to supply electricity to mining companies, industries, commercial customers and households, while supporting economic development in Zambia and the wider Southern African region.
Western Power Company Managing Director, Tom Younger, said the company looked forward to working with Stanbic Bank and DBSA to conclude the financing process in the coming months.
He said the project would contribute to the Government’s Grow Zambia Agenda through increased electricity generation, improved power supply to Western Province and the creation of more than 100 permanent jobs.
Younger said the proposed transmission line would significantly improve electricity reliability in the province, supporting households, small businesses, mining operations and industrial development.
Byrne said the project demonstrated the importance of partnerships between developers, commercial lenders, development finance institutions and local communities in delivering critical infrastructure.
She said such collaborations were essential to addressing Zambia’s long-term energy requirements and strengthening regional energy security.
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