Ngonye Falls Hydroelectric Project

Countries of Operation

Zambia, Southern African region

Ownership of Company

Western power has the following Development and Funding Partners:

• African Power Projects (APP) is a Mauritian project development company established to develop renewable power projects across Southern Africa. APP was set up by a group of private international investors and Zambians. APP has raised significant development funding for the Ngonye Falls project and is an active part of the Ngonye Falls management team in cooperation with InfraCo Africa.

• InfraCo Africa is an infrastructure development facility of the Private Infrastructure Development Group (PIDG). InfraCo Africa seeks to alleviate poverty by mobilising private sector expertise and finance to develop infrastructure projects in sub-Saharan Africa’s poorer countries. InfraCo Africa is a major shareholder in Western Power and is supporting the company with significant development funding as well as expertise in the form of experienced infrastructure development professionals working for the project in Zambia and internationally.

• The Development Bank of Southern Africa (DBSA) is a development finance institution that seeks to advance the development impact in Southern Africa by expanding access to development finance and effectively integrating and implementing sustainable development solutions. DBSA has supported Western Power from the earliest stages of the project through their Project Preparation Fund which has provided funding for key project studies from inception through to bankable feasibility. Through their involvement DBSA has facilitated significant additional private and public investment in the project.

Number of years since incorporated

Not indicated

Stage

Preliminary | Initial studies completed

Annual Revenue (in EUR)

Not indicated

Number of employees

3000

Project Pitch

Ngonye Falls Hydroelectric Project is a project by Western Power Company located in Zambezi River in the Western Province of Zambia. The project is worth more than $600m and will be the largest runofriver hydro in Zambia and largest Zambian renewable private power producer (IPP) with 180 MW capacity and 830 GWhr per year of energy generation, it will produce up to 25 times the current consumption of Western Province (7MW) enough power for 175,000 Zambian households, equivalent to 900,000 people.

Construction period starts from 2023 and will take 3 to 4years employing 3,000 people. The project is a collaboration between the private sector, host community, Zambian Government and development assistance partners.

The project is available for FDI through a majority stake. The project has development and funding partners which are African Power Projects (APP), InfraCo Africa and The Development Bank of Southern Africa (DBSA).

• Very low environmental and social impact –no dam and no lake
• Longterm (>25 years), reliable, consistent baseload energy
• Climate change resilient due to unique hydraulic characteristics
• Significant direct and indirect employment, training and skills development
• Ideally placed to export power to the Southern African region through existing international connections
• All technical survey studies and analysis completed, Proven technical and economic feasibility, Community Participation Agreement completed with the host community and Environmental and Social Impact Assessment completed and approved by the regulator.
• Power Purchase Agreement under negotiation with the Zambian power utility, ZESCO. EPC Contractor. Procurement underway and contractors shortlisted under the EU Procurement Regulations and Acquisition of land and water rights have well advanced

Total Project Cost (in EUR)

EUR 21,510,072

Financing needs (in EUR)

EUR 21,044,020

Type of financing needed

Equity; Debt

Planned allocation of fundraising capital

Purchase of new machinery and equipment; Technology and know-how expertise