ITEZHI TEZHI POWER CORPORATION
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
The Itezhi Tezhi project is a 120MW base-load hydro power plant being developed at the site of the existing Itezhi Tezhi dam on the Kafue River in Zambia. The project is being developed by Itezhi Tezhi Power Corporation Ltd (ITPC), a joint venture SPV established in 2007. ITPC is 50% owned by Tata Africa and 50% by ZESCO. The company has a 25-year concession and a 25-year off take agreement with ZESCO.
What is our funding objective?
FMO is providing a long-term senior debt facility of around US$36 mln, which will be used for the construction of the project. It is part of a larger US$142 mln senior debt facility put together with DBSA, AfDB and Proparco.
Why do we fund this investment?
The project fits very well in FMO's sustainable energy strategy to provide funding to renewable energy projects in low-income countries, such as Zambia. Moreover, FMO is providing long-term financing that is scarce in Zambia. By funding this project, FMO intends to support more private sector involvement and development and the growh of renewable energy production in Zambia.
- Region
- Africa
- Country
- Zambia
- Sector
- Energy
- Effective date
- 4/14/2014
- Total FMO financing
- USD 35.99 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+