Home » Education » ZIMBABWE: US$1 BILLION HWANGE POWER PROJECT TAKES OFF

The US$1.4 billion Hwange Power Project signed last year between the Government and China Export-Import Bank is now set for take-off after Parliament on Thursday approved a US$1 billion loan facility from the Asian financial institution.

Finance and Economic Development Minister Patrick Chinamasa published the loan facility on Friday in the Government Gazette to concretise the project.

The project is one of the several mega deals signed between Zimbabwe and China as the Asian state demonstrated a commitment to do business with Harare.

Minister Chinamasa published the loan agreement in a Government Gazette made available on Friday detailing its features some of which included 20 years repayment period with a grace period of seven years at an interest rate of two percent per annum.

The loan has also a commitment fee of 0.25 percent per annum on the undrawn amount and management fee of the same percentage.

"It is hereby notified, in terms of Section 300 (3) of the Constitution of Zimbabwe, that Zimbabwe, represented by the Minister of Finance and Economic Development, concluded a loan agreement with the Export - Import Bank of China dated 30th June 2016 on the following terms -- (a) the loan amount is $997,723,244,20

(d) the loan would be utilised for the purpose of the construction of Hwange 7 and 8 Thermal Power Station Expansion and ancillary structures," reads the notice.

Source: NAM NEWS NETWORK

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