NAPSA TO INVEST $200 MILLION IN FORM OF DEBT FINANCING TOWARDS CONSTRUCTION OF MAAMBA PHASE II POWER PROJECT

 The National Pension Scheme Authority -NAPSA- has announced the signing of a financing agreement with Maamba Collieries Limited to invest up to $200 million in form of debt financing towards the Maamba Phase II project.

The Maamba Phase II power project is estimated to cost up to $400 million, to be financed by debt of about $300 million and equity of $100 million.

Addressing the media in Lusaka today on the signing of the financing agreement for the construction of the 300 megawatts power plant, NAPSA Board Chairperson Shipango Muteto explained that the NAPSA debt is priced at 9% net of taxes for a period of 10 and half years, inclusive of 2 and half years of moratorium period on principal repayments.

Mr. Muteto said the Maamba Phase II is projected to be completed within 25 months from date of commencement of the project, following the signing of the financing agreement on 4th July 2024.

He says the project will help to diversify the country’s energy mix and reduce dependency on hydroelectricity which is being adversely affected by climate change and will significantly reduce the current load shedding and bring about some stability in power supply.

Mr. Muteto says during the construction period, about 1,200 jobs are expected to be created and about 400 direct jobs during the operational phase.

And NAPSA Director General Muyangwa Muyangwa disclosed that the authority is currently evaluating a variety of projects for potential investment and funding which focus on alternative energy sources, with particular emphasis on solar power.