Zesco, Zambia’s state-owned power utility company, has signed a Power Purchase Agreement (PPA) with Integrated Clean Energy Power Company Ltd (CiEG), a subsidiary of China Huadian Corporation, to produce 2,400 Megawatts of renewable energy estimated at US$3.5 billion. This agreement will be rolled out in phases of 600-800MW over a 3-year period in 4 provinces beginning this year with 300mw in Southern Province and 300mw in Central Province.

China Huadian Corporation is a global energy company and the third largest electricity power producer in the world, listed on Fortune 500. CiEG is an investment development and Mergers and Acquisitions (M&A) of international projects arm for China Huadian Corporation.

This sizeable foreign direct investment (FDI) from China into Zambia is a testament to the reset and enhanced relations between the two countries for mutual benefit, which dates back to the two founding fathers; Chairman Mao and Dr. Kenneth Kaunda.

According to a statement released to the media by Clayson Hamasaka, the chief Communications Specialist at State House, the investment pledge of US$3.5 billion follows an earlier investment of US$2.5 billion in 2,000mw of energy by Masdar from the United Arab Emirates. These investments signify the New Dawn’s Government’s strong resolve to achieve energy sufficiency for the domestic economy and energy surplus to enable increased exports as part of promoting export diversification and enhanced foreign currency earnings.

This power project is expected to boost Zambia’s energy capacity, which has been a critical issue in recent years, leading to power outages and supply interruptions in the country. The additional power supply will not only cater to the domestic demand but also enable Zambia to export surplus energy, which will enhance its foreign currency earnings.

The investment by China Huadian Corporation is also expected to create job opportunities for the local population, enhance economic growth, and improve the overall living standards of the people. The project will also contribute to reducing Zambia’s carbon footprint and mitigating the effects of climate change.

The successful completion of this project will be a significant milestone for Zambia, which has been grappling with energy shortages for years. The government’s resolve to attract foreign investment to the energy sector is expected to create a conducive environment for further investment in the sector, leading to enhanced energy security, economic growth, and improved living standards for the people of Zambia.