African Export–Import Bank, also referred to as Afreximbank or Banque Africaine d’Import-Export, has signed a $4.4 million project preparation facility agreement with Green Hybrid Power Private to advance feasibility and bankability studies for a 1 GW floating solar photovoltaic (PV) power plant on Lake Kariba in Zimbabwe, Africa.
According to Afreximbank, the project, which will be implemented in two phases, includes an initial 500 MW pilot targeting industrial and mining customers. Power will be sold entirely to the Intensive Energy Users Group, a consortium of large-scale energy consumers, under a 20-year “take-or-pay” power purchase agreement at a cost-reflective tariff.
The project preparation facility will also fund transaction advisory services to bring the project to financial close. The planned investment is estimated at $350 million.
According to Afreximbank, the floating PV plant is expected to deliver reliable and competitively priced electricity to energy-intensive industries in Zimbabwe, enabling mineral beneficiation and boosting the country’s export revenues.
The agreement was signed by Kanayo Awani , Executive Vice President, Intra-African Trade and Export Development, on behalf of Afreximbank, and Eddie Cross , Chairman of Green Hybrid Power.