ZambiaTrafigura Backs $300M Power Link
Trafigura and partners will build a $300M, 200km power link to deliver up to 700MW to the DRC copperbelt. The project will be funded by equity from the DRC's Strategic Investment Fund, EnPower, and Gridworks Development Partners LLP.
Global Newsflix 1 min read
Trafigura has agreed to arrange a significant share of the debt financing for the project. The power link will connect Kalumbila in Zambia to Kolwezi in the DRC.
Chris Flavin, CEO of Gridworks, said the project will give the copperbelt access to reliable, competitively priced power. He added that there is capacity on the line to serve the wider population.
The project is anchored by mining offtake, but it will also provide power to other areas. The power link is expected to deliver up to 700MW, expandable to over 1GW.
Key facts
- Trafigura and partners will build a $300M power link
- The power link will connect Kalumbila to Kolwezi
- The project will deliver up to 700MW, expandable to over 1GW
- Equity will come from the DRC's Strategic Investment Fund, EnPower, and Gridworks Development Partners LLP
Three perspectives
Neutral
The project aims to provide reliable power to the copperbelt region. It will be funded by a combination of equity and debt financing. The power link is expected to have a significant impact on the region's economy.
Positive
The project will provide competitively priced power to the copperbelt region, which will benefit the local economy. It will also create opportunities for further cross-border transmission investment.
Negative
The project's reliance on mining offtake may limit its ability to provide power to other areas. The debt financing arranged by Trafigura may also pose a risk to the project's viability.
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