$150 million loan to finance 300 Mega Watts coal-fired power plant and mine

05/10/2013

A coal merchant shovels coal at a coal yard in Melmerby, northern England — Maamba coal mine

The Board of Directors of the African Development Bank (AfDB) has approved a senior loan of up to US $150 million to finance a 300Mega Watts coal-fired power plant as well as the revamping of the Maamba coal mine in Maamba.

The project aims to tackle a severe environmental concern at the mine caused by the unregulated and spontaneous self-combustion of tons of currently unused low-grade coal while producing much-needed electricity for the country and the region.

The Maamba power plant project is expected to increase supply and reliability of electricity in Zambia which is currently experiencing black-outs and is heavily reliant on drought-sensitive hydro power.

Zambia’s hydro power production accounts for 96 percent of total production, which exposes the country to severe economic risks in case of drought.

The project is being developed by Maamba Collieries Limited, a company incorporated in Zambia in 1971 and privatized in 2010 through a joint venture between Nava Bharat Singapore Pte Limited (NBS) and Zambia Consolidated Copper Mines Investment Holding a public investments holding company.

Following the Board’s approval of the loan, AfDB’s Division Manager for Infrastructure Finance, Tas Anvaripour said he is delighted to reaffirm the African Development Bank’s commitment to support Zambia’s power sector as it embarks onto the path of energy source diversification and resilience in an increasingly climate change-sensitive environment.

Mr Anvaripour stated that by capitalizing on readily available low-grade coal resources that are otherwise left to self-combust in the open air and inflict an environmental burden on the entire Maamba area, the project will produce much-needed power for households, businesses, and Government, while remediating a long-standing environmental concern.