Zambia and Zimbabwe Revive $5B Batoka Gorge Hydropower Plan

Zambia and Zimbabwe are initiating a retendering process for the $5 billion Batoka Gorge hydropower project, which was previously awarded to General Electric (GE) and Power Construction Corp of China. The Zambezi River Authority (ZRA), responsible for the Kariba Dam complex, aims to select new bidders by September of next year. Bids from potential developers are expected by April 2025, with the selection process to follow five months later, according to ZRA CEO Munyaradzi Munodawafa.

Delays in the project's commencement, including challenges posed by the Covid-19 pandemic and funding difficulties, have pushed back the initial timeline. In June, Zambian Energy Minister Peter Kapala announced the termination of the 2019 contract with GE and Power China due to improper procurement methods during the tender award.

The ongoing drought in the region, attributed to the El Niño weather phenomenon, has resulted in rising food prices and adverse effects on vulnerable households. Consequently, the development of water-reserve buffers has become a priority. The Batoka Gorge project, with a capacity of 2,400 megawatts, will enable water conservation at the Kariba Dam during the rainy season, ensuring power generation during the dry season.

While water levels at Kariba Dam are expected to continue receding due to poor rainfall, Munodawafa clarified that decommissioning the dam is not being considered. The ZRA has allocated 8 billion cubic meters of water to Zambia's ZESCO and Zimbabwe's Zimbabwe Power Co, providing 214 megawatts each to the two utilities until the end of the year.

The Batoka Gorge hydropower project is anticipated to have substantial economic and environmental benefits for both Zambia and Zimbabwe. Once completed, it is expected to create numerous job opportunities, boost local economies, and attract investments in the surrounding regions. The project will also contribute to the countries' renewable energy targets, reducing their reliance on fossil fuels and promoting sustainable development.

The location of the project, at the Batoka Gorge along the Zambezi River, offers a favourable topography for efficient power generation. The project's capacity of 2,400 megawatts will significantly augment the power supply in both countries, helping to meet the growing energy demands of industries, households, and infrastructure development.

Apart from its power generation capabilities, the Batoka Gorge project will also contribute to flood management in the region. By regulating water flow and storing excess water during the rainy season, the project will help mitigate the risk of floods downstream, protecting communities and agricultural lands from potential damage.

The retendering process for the project underscores the commitment of Zambia and Zimbabwe to ensure transparency, adherence to proper procurement procedures, and the selection of the most qualified and competent bidders. The governments of both nations are keen on attracting reputable international companies with extensive experience in hydropower infrastructure development.

The Batoka Gorge hydropower project is viewed as a long-term strategic investment that will enhance energy security, foster regional cooperation, and drive economic growth in the Southern African region. Its successful implementation will have a transformative impact on the energy landscape and pave the way for further collaboration between Zambia and Zimbabwe in harnessing their shared water resources for sustainable development.

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