In 2010, the Zambia Power System Development Plan (PSDP) approved the hydropower generation project on Kafue River in Zambia, an expansion of the Ithezi-Thezi (ITT). This is a critical energy generation project that will assist with the country’s targeted projected annual growth of 4.4% in electricity demand for the coming 25 years.
The expansion of the ITT project will not only have a significant impact on Zambia’s economy, but will provide more cost effective and reliable electricity to the consumers of member countries of the Southern Africa Power Pool (SAPP). It is estimated that 550 people will be employed during the construction phase, 100 of whom will be skilled expatriates. About 60% of those employed are Zambians.
The DBSA has contributed US$23 million (of the US$35 million facility) to ITT independent power producers for the generation of 120MW from a hydropower plant. The plant is already fully operational, with commercial operation debt reached in March 2016, and had a total final cost of US$244 million. ITT is a SPV owned by Tata Africa Holdings (SA) Pty Limited and ZESCO Limited in a 50:50 share ownership.