Emergency Power Infrastructure REHAB II
- Reference: P-ZW-FA0-002
- Approval date: 18/12/2013
- Start date: 09/07/2014
- Appraisal Date: 05/04/2013
- Status: OngoingOnGo
- Implementing Agency: ZIMBABWE ELECTRICITY SUPPLY AUTHORITY
- Location: Zimbabwe
The overall goal of the project is to support the implementation of the Government's MTP( 2011 - 2015) by assisting the implementation of the emergency power infrastructure rehabilitation program to increase access to reliable electricity supply for the social and economic development of Zimbabwe.
The objective of the project is to improve overall availability and reliability of electricity supply to critical social infrastructure facilities and the people of Zimbabwe.
Project Components and Activities
A.Upgrading and Rehabilitation of Network Infrastructure: supply and installation of transformers at three substations: Sherwood (1 x 175MVA, 330/(132)88/11kV), Chertsey (1 x 90MVA, 330/132/11kV), and Marvel (1 x 175MVA, 330/(132)88/11kV);
B.Sub-Transmission Capacity Strengthening: Supply and installation of two transformers of 1 x 50/75MVA, 132/33kV each at Orange Grove and Mashava substations and equipment for dedicated supplies to water and sewerage works (Prince Edward Water Treatment Plant, Warren Water Pumping Station, Crowborough Sewage Treatment Plant and Firle Sewage Treatment Works;
C.Rehabilitation of Hwange Power Station: Rehabilitation of Ash Dam Stage I and Stage II; Replacement of Vacuum Cleaning Plants of Stage I and Stage II Units; Rehabilitation of Plant Drain Systems; Rehabilitation of Dust suppression Plant for coal Handling Plant of Stage I & II; and
D.Project Management, Supervision and Auditing.
E.nvestment plan for power infrastructure
1.Access to reliable electricity supply
2.Improved environmental quality at HPS and surroundings
PRSP and CSPs priorities, key development issue(s) project is aiming to address:
Alignment with Strategic Priorities
The goal for the energy sector in Zimbabwe is to provide access to affordable and reliable electricity supply at competitive cost to all Zimbabweans to sustain economic growth, alleviate poverty and create employment. This goal is an integral part of the MTP which is the GOZ's strategic framework to transform the economy, reduce poverty, create jobs, maintain stability and restore the economy's capacity. Under the infrastructure rehabilitation and development pillar of the MTP, rehabilitation and development of the power system is identified as one of the key priority areas for promoting economic growth and reducing poverty. The proposed project is in conformity with the MTP as its objectives are to improve the availability and reliability of electricity supply through the rehabilitation of generation, transmission and distribution facilities.
Alignment with Bank Policies and Strategy of Assistance
The project also aligns with the Bank's Zimbabwe Country Brief for 2011 - 2013 which highlights support for infrastructure rehabilitation in the country as a tool for economic recovery and intention to continue to implement infrastructure projects and other operations supported from the ZIMFUND. In addition, the proposed Project is in line with the Bank Group Vision and the Long Term Strategy (2013-2022) currently under preparation, which emphasises the importance of infrastructure development as an important area of intervention for economic growth. It is also in line with the Bank Group's new Energy Policy whose objectives include support to Regional Member Countries in their efforts to provide their populations and productive sectors with access to modern, affordable and reliable energy services.
1Economic and financial performance
1.1 The project intervention will result in improved electricity supply as a result of
(i) transformer rehabilitation at the substations,
(ii) provision of dedicated power supplies to water treatment plants. Indirect economic impact will arise from the improved distribution of power to the water and sanitation sector, which will re-invigorate the country's economic activities and boost industrial production and contribute towards better operations in social institutions through a positive impact on water supply and sewerage services delivery. Power shortages and network faults have mostly affected manufacturing industries, agriculture, mining, and social services. The rehabilitation works at the Hwange ash dam and plant as well as the dust suppression system works will result in,
(i) a reduction in potential rates of coal dust and ash pollution related diseases and associated costs to public health system, and
(ii) less ground and water pollution hence an averted cost to the economy related to site cleaning and restoration as well as cost accrued to various hindrances to agricultural and fishing activities.
1.2 Both the financial and economic benefits from the work at the substations and the water treatment plants are measured by the additional revenues from electricity sales and the savings realised by consumers by not using alternative sources of energy following the rehabilitation, respectively. The alternative cost of supply, as measured by own generation using diesel engines by household, commercial and industrial consumers, has been estimated at USD 38
HARMSE Liezl Cecilia - RDGS4