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Trust Freddy Herald Correspondent

Dinson Iron and Steel Company yesterday signed a memorandum of understanding with Xian Engineering Enterprise, a subsidiary of China XD, for the construction of the 400kV transmission line between Sherwood and the Manhize Steel Plant.

The ceremony, which was held in Xi’an, China, yesterday, was presided over by Minister of Energy and Power Development Edgar Moyo, who was accompanied by Zesa executives, including executive chairperson Dr Sydney Gata, as the Government continues to lure more investors.

Speaking during the signing ceremony, China XD group chairman Diang Xialon pledged the company’s commitment to developing Zimbabwe’s energy sector.

China XD would always see Zesa as a crucial customer.

“Through this exchange visit and the signing of the cooperation agreement, we wish to strengthen our cooperative ties and jointly contribute to the flourishing of Zimbabwe’s power utility by a full chain of Chinese solution,” Mr Xialon said.

Mr Diang also reaffirmed China’s commitment to the agreement made between the presidents of the two countries.

“In recent years, supreme leaders from both nations as well as government officials have frequently visited each other and signed a series of cooperation agreement.

“In 2018 , President Xi Jinping and President Mnangagwa had cordial talks at China-Africa Cooperation Forum in Beijing, which injected new momentum and opportunities into bilateral relations development.

“The Belt and Road Initiative has continuously deepened and expanded cooperation between China and Zimbabwe in the fields of energy, infrastructure, investment, and trade, creating favourable opportunities for Chinese enterprises in Zimbabwe.”

In his remarks, Minister Moyo welcomed China’s continued cooperation and investment in Zimbabwe.

“Your footprint as XD Company in Zimbabwe is very important and transformative,” he said.

“As Zimbabwe, we very much value and would like to acknowledge the very important project being led by Dinson in Zimbabwe, which is going to change the way Southern Africa will look in the next few years.”

With the signing of this agreement, Minister Moyo was confident that the project would bring about significant changes to the country’s energy sector. He stressed that the Government’s priority is to foster economic development and business growth, rather than political agendas.

Dr Gata described Zimbabwe as a safe investment destination.

“The decision to invest in Southern Africa is the correct one, particularly in our country because we are going through a massive transformation which is anchored on mining, smelting and Agriculture,” he said.

Dr Gata also described the strengthening of the country’s transmission system as a win-win solution for both countries, as more and more Chinese companies are investing in Zimbabwe.

A number of transmission lines, Dr Gata said, pass through Zimbabwe, describing it as a key link in the regional energy market, with the potential to play a greater role in the future.

The deal will see Xian Engineering constructing a 400kV transmission line from Sherwood to the US$1,5 billion Dinson Iron and Steel Company (Disco) Manhize plant.

A Zimbabwean delegation led by Minister Moyo is touring China, to explore possibilities for investment and collaboration in the energy sector as the Second Republic moves to create a robust power sector that will support the country’s economic development.

So far, the Minister has witnessed the signing of several memorandums of understanding between Chinese companies and Zesa Enterprises.