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South African DBSA to extend financial support for MoZiSa project [free access]

April 9, 2018

The Development Bank of Southern Africa (DBSA) is expected to extend financial support of over USD190 million for the implementation of the Mozambique–Zimbabwe–South Africa (MoZiSa) transmission project.

 

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), one of the developers of the project, is in discussion with the DBSA to unveil funds for the MoZiSa interconnection. DBSA will extend financial support through the Southern African Development Community (SADC) Project Preparation and Development Facility (PPDF), which is funded by the European Union (EU) and German government through KfW Development Bank. DBSA is the implementation agent and fund manager for the SADC PPDF.

 

The proposed interconnector aims to strengthen the transmission networks for the three countries and also for the entire Southern Africa Power Pool (SAPP) due to the regional dependence of the system on the wheeling of electricity to and from member countries, when the situation demands.

 

The project includes construction of 400/330 kV substations at Triangle and at Orange Grove in Zimbabwe; the 275-km, 400 kV Triangle (Zimbabwe)–Nzhelele (South Africa) interconnector line and a 400 kV line bay at the Nzhelele substation in South Africa; 185-km, 400 kV Orange Grove (Zimbabwe)–Inchope (Mozambique) interconnector line; and the new 400/220 kV Inchope substation, 360-km, 400 kV Inchope–Matambo line and 115-km, 400 kV Matambo–Songo line in Mozambique.

 

SADC has been facing crippling challenges in meeting its energy requirements due to growth in demand and limited investment in the sector, particularly in the construction of new transmission lines, which are required for smooth movement of surplus energy across the region.

 

The project is expected to be commissioned by 2022.