By: Africa oil + gas report

Afreximbank has signed a Heads of Terms agreement for a $4.4Million project preparation facility in favour of Green Hybrid Power Private Limited.

The facility will be deployed towards the preparation of bankability and feasibility studies and procurement of transaction advisors for a 1,000MW (1GW) hybrid floating solar photovoltaic power system on Lake Kariba, Zimbabwe.

The project, to be implemented in two phases, includes a pilot phase targeting a generation capacity of 500 MW to be sold wholly to the Intensive Energy Users Group, a consortium of blue-chip industrial and mining energy users in Zimbabwe, under a “take-or-pay” 20-year power purchase agreement with a cost-reflective tariff. The project is expected to supply affordable and reliable power that will support value-addition and beneficiation of Zimbabwe’s minerals, thereby boosting the country’s foreign exchange earnings.

The Pan African lender claims that “the project preparation facility will unlock an investment estimated at $350Million.

Signing the agreement were. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development, on behalf of Afreximbank, and Eddie Cross, Chairman, for Green Hybrid Power Private Limited.