Tsingshan, a Chinese steel giant, is set to give Zesa USD 60 million to build the Kwekwe to Mvuma electricity transmission line.
This comes after the Chinese firm requested that Zesa upgrade portions of its infrastructure, but the electricity provider baulked.
The steel company is building a USD three billion stainless steel production factory in Zimbabwe’s Midlands area through its Selous-based ferrochrome smelting subsidiary Afrochine. Tsingshan has been looking at developing a sustainable power infrastructure as part of the early stages.
The Kwekwe to Mvuma electricity transmission line has been a priority for the country.
A total of 1,000 MW will be required by the Chinese enterprise, out of two 300 MW requested by the Treasury.
The high voltage electricity must next be transmitted from Sherwood in Kwekwe to Mvuma, which will necessitate building a powerline. Various talks are taking place with the Chinese business, offering a tariff reduction once the steel facility begins operations.