Business / Industries

Zimbabwe expects cooperation with China to plug energy shortfalls

(Xinhua) Updated: 2015-09-22 14:08

HARARE - Zimbabwe is prioritizing energy cooperation with China to plug energy shortfalls that have affected economic growth, Finance Minister Patrick Chinamasa said Monday.

The minister made the remarks during a meeting with the visiting chairman of Sinosure Wang Yi who is on a five-day maiden visit to the southern African country.

Zimbabwe faces perennial power shortages due to obsolete equipment, and is currently producing half of its 2,000 megawatts energy requirements.

The government has contracted Chinese firm Sinohydro to expand the second largest power plant, Kariba Hydro Power Station, by 300 mW. The Chinese-funded project began in 2014 and is scheduled for completion in 2017.

Sinosure provided insurance cover for the project.

Sinohydro has also been contracted to expand the biggest power plant Hwange Thermal Power Station.

"At the forefront of government's priorities with regard to further cooperation with Chinese financial institutions is energy, also against the background of regional power deficit across the region," Chinamasa said.

Wang expressed Sinosure's desire to deepen cooperation with Zimbabwe by providing it with comprehensive insurance cover.

Sinosure has previously provided insurance cover for several loan facilities to Zimbabwe covering the country's now defunct steel maker ZISCO, agricultural equipment and machinery, supply of medical equipment and rehabilitation of municipal water and sewage treatment works, among others.

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