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Three Gorge Water Conservancy Project in China. CGGC was the main contractor for the 22 500 megawatts Three Gorges Hydropower project

Golden Sibanda Senior Business Reporter
CHINESE construction and engineering group China Gezhouba Group Corporation, in partnership with a local private firm, has expressed interest to invest in a $1,2 billion diesel and gas emergence power project in Mutare.The Chinese construction giant has already submitted an expression of interest to the Zimbabwe Power Company to be considered for the project.

CGGC is working with local firm GWI for the diesel and gas power plant with design capacity for 120 megawatts.

The Herald Business understands the two were also angling for the Batoka Gorge project, but officials would not be drawn into discussing the issue.

The Batoka Gorge hydro power station will be located on the Zambezi River, approximately 54 kilometres downstream of Victoria Falls near the border with Zambia.

The plant will have two power plants, each with an installed capacity of 800MW; one on the Zambian side and another on the Zimbabwean side of the gorge.

The estimated construction costs are between $2,5 to $3 billion. Construction is expected to begin this year after the two countries resolved differences over sharing of the Kariba Dam hydro power stations assets after the dissolution of the federation of Rhodesia.

Managing director Mr Victor Chimhau said the GWI was focused on infrastructure projects identified by Government under its economic policy, Zim-Asset 2014 /18

He said the Mutare emergence power plant will have a dual powering mechanism, such that when the power plant is not running on gas it would run on diesel.

“We have established a working relationship with China Gezhouba Group Corporation in an effort to secure projects in the (power) generation sector, housing and irrigation development sector,” Mr Chimhau said.

The power projects Government has identified for development will go a long way in resolving power deficits, which may affect growth in major investments.

CGGC is one of the biggest infrastructure development companies in China and has participated in construction of iconic projects in the world’s second biggest economy.

CGGC has reportedly invested in and constructed highways; developed real estates, generated hydropower, and manufactured cement and civil explosives.

Mr Chimhau said they decided to identify foreign entities with potential and capacity to develop projects prioritised under the infrastructure and utilities cluster of Zim-Asset, the national economic recovery policy.

“As their agents, we have successfully submitted bids for projects in the energy generation sector and we are still working on other sectors of the economy,” he said.

“We have since invited them to make a presence here (Zimbabwe) so that jointly, we can explore areas of common business interest guided by Government priorities as spelt out in the Zim-Asset,” Mr Chimhau said.

The GWI managing director said the Chinese construction group had responded positively by sending an advance part of four of its technocrats to pave way for development of a stronger working relationship.

In direct response to the initiatives made by President Mugabe and his delegation in their recent visit to China, CGGC has sent its chief executive to China to build on opportunities created by Government’s visit to China.

During the State visit to China, Government successfully signed agreements for funding commitments on viable and bankable mega infrastructural projects endorsed by China’s political leadership, including President Xi Jinping and Premier Li Keqiang.

In September 2007, CGGC saw the initial public offering of its core business assets. CGGC Limited, the listed company of CGGC was ranked number 7 among the 20 most  competitive Chinese listed companies of  2009.

After the restructuring of the power system of China in September 2011, CGGC has become a core member of China Energy Engineering Group Co Ltd (CEEC).