In 2010, the Zambia Power System Development Plan (PSDP) approved the development of the Hydropower Generation Project on the Kafue River in Zambia, an expansion of the Ithezi-Thezi (ITT). This was identified as a critical energy generation project which will assist with the country’s targeted projected growth of 4.4% per annum in electricity demand for the following 25 years.
The expansion of the ITT project will not only have a significant impact on Zambia’s economy, but will also provide more cost-effective and reliable electricity to the consumers of member countries of the Southern Africa Power Pool (SAPP).
It was estimated that a total of 550 people would be employed during the construction phase, of which a 100 will be skilled expatriates. Approximately 60% of those employed are Zambians.
The DBSA has contributed USD23 million (of its USD35 million facility) to ITT Independent Power Producer for the generation of 120 MW from a hydro power plant. The plant is already fully operational, with commercial operation debt being reached in March 2016, and had a total cost of USD244 million. ITT is a SPV owned by Tata Africa Holdings (SA) Pty Limited and ZESCO Limited in a 50:50 share ownership