Mulembo Lelya Hydro Power Plant - Zambia

The Mulembo Lelya Hydro Electric Power Limited (MLHEPL) is intending to exploit the hydro power potential to meet some of the anticipated energy demand within Zambia, the DRC and the Southern Africa Power Pool (SAPP).

Introduction

The Mulembo Lelya Hydro Electric Power Limited (MLHEPL), a company registered under the laws of Zambia, is intending to exploit the hydro power potential of the Mulembo and Lelya Rivers on the border of the Central and Eastern Province of Zambia to meet some of the anticipated energy demand within Zambia, the DRC and the Southern Africa Power Pool (SAPP).

MLHEPL has been granted feasibility study rights by the Zambian Energy Ministry to exploit the hydro potential from the Mulembo and Lelya Rivers.  MLHEPL is therefore conducting feasibility studies at these two sites for the development of a 106MW hydropower project.  The implementation of the project will assist Zambia with its current power crisis and thus ensure energy security. Additional power could also be exported into the SAPP power pool.

Project Financing
Private
Project Size
Large
E&S Risk category
Category 1
DBSA Involvement

The project required project preparation funding for the completion of the Feasibility Study. DBSA secured a USD2 million project preparation grant via PPDF for the project. DBSA, further assisted MLHEPL with the procurement and appointment of the Technical, Legal and Financial Advisors on the project, and is a key standing member of the Project Steering Committee (PSC) for the project.

Stats
Improving

the situation with regards to electricity shortages experienced in Zambia. Current shortfall of power is due to the drought stricken Southern region, where most of the hydro facilities are located. The location of this project in the Central and Eastern Province near Serenje and Mkushi districts will alleviate this problem as these areas have higher rainfall patterns according to Zambia’s Ministry of Energy (MOE).

Promote

economic development, specifically with off-taker supplying power to copper belt region.

Assist

with Zambian aspiration of becoming a net exporter of power to SAPP, due to an 8000MW shortfall for operating members.

R270.00m
50%
Sustainability impact

The feasibility study will investigate options of minimum environmental and social impacts to the nearby communities. The implementation of the project will also result in much needed job creation in the region and energy security to the Copper belt region in Zambia.

Project owners

MLHEPL is an incorporated registered company in Zambia and the proposed shareholders are Mchimadzi Hydro Electric Power Ltd., AFI Corporate Advisors (Pty) Ltd. and Africana Finance & Investments Zambian Limited. The proposed shareholders have signed a Joint Development Agreement for the development of this project.