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The Zambia Development Agency has signed an investment protection and promotion agreement (IPPA) worth over US$1 billion with EMCO Energy Zambia Limited for the construction of a 340 Megawatts thermal power plant in Sinazongwe district.
ZDA Board Chairperson Mary Ncube says the pledged investment by EMCO will result in the creation of over 4, 000 jobs during the construction phase and operation of the power plant.
Mrs. Ncube says the Energy sector is one of Zambia’s priority sectors in addition to tourism, agriculture, manufacturing, construction and infrastructure development.
Speaking during the signing ceremony, Mrs. Ncube says the investment in thermal power generation will improve Zambia’s energy source diversity, thereby reducing electricity supply risks associated with climate change.
Mrs. Ncube has emphasized that the 340 Megawatts coal fired power plant will contribute towards meeting the national energy and system peak demand, whose forecast is currently in deficit.
Speaking earlier, EMCO Energy Zambia Limited Chief Executive Officer Ajit Kumar Mishra says the power generated by power plant will be supplied to ZESCO.
Mr. Mishra says the project will benefit the local people in Sinazongwe.
He has also disclosed that the company has signed relocation agreements with the affected families, adding that the compensation package committed to the affected families is going to be one of the best compensation packages offered by any foreign investor in Zambia.
Mr Mishra adds that apart from offering cash compensation for the land and households; EMCO has also offered some skill based employment to one member of each of the affected families.