Lusaka, 18th August, 2024 – The President of the Republic of Zambia His Excellency Mr. Hakainde Hichilema, on 13th August, 2024 officiated at the ground-breaking ceremony for a 300MW Phase II thermal power plant by Maamba Energy Limited, which double power will output from the company to 600MW from 300MW.
The project will see construction of two by 150MW thermal power plants in Sinazongwe District of Southern Province at a total cost of US $400 million. President Hichilema applauded the initiative which is a Public Private Partnership (PPP) involving government represented by ZCCM Investments Holdings Plc (ZCCM-IH) which has 35 percent shares, while Maamba Energy and Nava Bharat jointly own the remaining 65 percent.
The President noted that the additional 300 MW from the new plant will go a long way in meeting the power shortfall in the country and ultimately help provide power for businesses and also contribute towards achieving the 3 million tonnes copper output target.
President Hichilema urged Maamba to work with local authorities, traditional rulers and give business to local contractors which will create employment opportunities for Zambians.
Nava and Maamba Energy Limited Board Chairperson Mr. Ashok Devineni said Maamba has worked well with the community by creating employment and business opportunities. This is in addition to providing various Corporate Social Responsibility initiatives.
He noted that Phase II will create additional new job opportunities for locals from construction right through to operationalization.
Zambia Development Agency (ZDA) was part of the government institutions that helped to make it possible for Maamba Energy to proceed with construction Phase II of the thermal power plant after overcoming challenges that had hindered the initiative.
ZDA Director General Albert Halwampa said the Agency in accordance with the law, is facilitating investment incentives for the project.
Mr. Halwampa said ZDA through the amended Investment, Trade and Business Development (ITBD) Act no. 18 of 2022 is facilitating investment incentives for the project to enable the company import the equipment duty free among other incentives.
He explained that section 30 of the ITBD was amended to introduce incentives for expansion projects and to extend incentives available under the ITBD Act to farm blocks.
“Investors embarking on expansion projects now have access to similar incentives as greenfield investments. In addition investors in farm blocks will also have access to incentives provided for under the ITBD Act,” he elaborated.
Construction of the two thermal power plants is set for completion in July 2026, 24 months after commencement, after which Maamba will contribute 600 MW to the national output from the current 300 MW.
Issued by:
Kwali Mfuni
Head, Communications and Public Relations,
Zambia Development Agency,
Investment House, Nasser Rd,
Lusaka.