Zimbabwe and China sign 1.5bn dollar energy deal

Zimbabwean President Robert Mugabe (L) and his Chinese counterpart Xi Jinping participate in a signing ceremony at the Great Hall of the People (GHOP). Photo credit: Getty images
Zimbabwean President Robert Mugabe (L) and his Chinese counterpart Xi Jinping participate in a signing ceremony at the Great Hall of the People (GHOP). Photo credit: Getty images

The Zimbabwe government and China's Sinohydro Group Ltd signed a 1.5-billion-dollar energy deal Friday, local media reported.

Energy Minister Dzikamai Mavhaire hailed the deal as a "huge step in resolving the current power deficit," in the southern African country plagued by energy shortages.

The installation of two power stations at north-western Hwange thermal power plant are due to add 600 megawatts of energy to the national grid, expanding current generating capacity by 50 per cent.

Mavhaire said the new power stations were slated to be completed within 3.5 years.

Zimbabwe has experienced power cuts for two decades as its equipment has become obsolete and authorities fail to raise money to import electricity.

Blackouts can affect some areas for entire days.

Last month, President Robert Mugabe visited China, where he clinched the deal with Sinohydro.

Zimbabwe has nurtured its connection with China after relations with the West soured over Mugabe's alleged human rights abuses and repression of the political opposition.

The signing ceremony was initially due to take place a week ago, but it was postponed for unknown reasons.

 

 

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