Lufubu Hydropower Project

Company Description

The Lufubu Power Company Limited (LPC) is a wholly owned Zambian Private Company incorporated in 2012. It is an Independent Power Producer incorporated for the purpose of undertaking the development of a hydropower scheme on the Lufubu River basin. Lufubu River is located between the districts of Mpulungu and Nsama in Northern Province of Zambia. The company's first project is a hydropower-based electricity generating project.

The aim of LPC is to generate power to supply both the local community in the project area and to the nation at large through the national grid. The current project is to generate power using hydropower based generating power plants. The generated power will be evacuated to the nearest point of connection on the national grid in agreement with the national grid operator.

Team

Lufubu Power Company Ltd is governed by a Board of Directors. To support the Board in the running of LPC, is the Management Executive Board headed by the Chief Executive Officer and Management team.

Countries of Operation

Zambia

Ownership of Company

100% Zambian

Number of years since incorporated

13 years

Stage

Growth stage

Annual Revenue (in EUR)

Not indicated

Number of employees

Not indicated

Project Pitch

The Lufubu hydropower scheme Project is a new project to be developed on the Lufubu River Basin in Mpulungu and Nsama District of Northern Province. It is aimed at strengthening the national grid supply and stability, contributing to economic growth as well as unlocking tourism and investment potential in the northern part of Zambia. The Lufubu River runs through the Northern Province and is one of the inflows into Lake Tanganyika.

The proposed Hydropower cascade scheme project will consist of a cascade of three (3) power plants to be constructed along the Lufubu River and these will be; the Lufubu 1 (installed phase 1 capacity of 66MW), Lufubu 2 (43MW) and Lufubu 3 (54MW) giving a total phase 1 installed capacity of 163MW. The power plants will be interconnected by 132kV transmission lines.

The project has a 4year construction period. The project is expected to succeed not only because it is profitable (with EBITDA projected at USD118.4m in year 1 of operations and increasing at a projected 2% per annum) and readily available market, but also the project site offers higher and more consistent rainfall patterns than the southern parts of Zambia, where all the country’s major hydropower stations are concentrated.

The project is available for FDI through a minority stake. The Lufubu Power Company Limited seeks to meet the cost of construction, acquisition and installations of the Hydropower generation plant and all other project development costs estimated at US$700 million through project financing arrangement to be sourced in form of equity or a loan facility.

Total Project Cost (in USD)

USD 700,000,000

Financing needs (in USD)

USD 670,000,000

Type of financing needed

Equity; loan

Planned allocation of fundraising capital

Greenfield (new activity for the company); construction, acquisition and installations