WINDHOEK, May 15 (Xinhua) -- Standard Bank said Monday that they have finalized a debt package of 120 million U. S. dollars with Zimbabwe Power Company (ZPC).
Standard Bank has partnered the Eastern and Southern African Trade and Development Bank (PTA Bank) to deliver the financing for the rehabilitation of existing power infrastructure at Kariba South Hydro Power Station and Hwange Thermal Power Station.
Standard bank has in the past entered into a funding arrangement with ZPC, which went towards their contribution into the 300MW expansion at Kariba South Hydro Power Station.
At a media briefing in Johannesburg, Tandiwe Njobe, regional head of Investment Banking at Standard Bank said this would go a long way in addressing the energy supply shortage which is critical for the future growth in many countries in sub-Saharan Africa.
"This funding will assist in improving access to power for Zimbabwe and Namibia, and in the medium to long term, benefits of improved power supply and reliability will also extend to other Southern African Power Pool (SAPP) members. The proceeds will be applied to significant capital expenditure which will increase capacity and improve efficiency of the power stations. Without reliable access to power, industry and economic growth are negatively impacted," said Njobe.
Standard bank expressed its commitment to fund infrastructural project in the continent. Njobe said they are willing to partner other stakeholders to address challenging issue in Africa.
"This is a landmark transaction in which we could leverage our sector and technical expertise in both markets, as well as our understanding of the regional power dynamics and local regulatory environments, to deliver value to ZPC and Namibia Power Corporation (NamPower). To make this transaction work we engaged with four regulatory bodies and key policy makers in four ministries in Namibia and Zimbabwe," she added.
Njobe said it was important for them to support the regional power sector through this loan facility. The funding would increase power generation in a region which has an on-going deficit and a clear need for dependable and sustainable power supply.
Africa is currently encouraging cross-border electricity arrangements and infrastructural projects for the benefit of the continent and region. Namibian Power Cooperation will also benefit from the deal since its getting power from Zimbabwe, said Njobe.
