The loan has been secured through TATA Africa Holdings which wants to partner Zambia’s electricity utility ZESCO in the construction of the project.

The financing is for the rehabilitation of the hydro plant through a 50:50% JV funding between Zambia’s Electricity Supply Corporation and TATA Africa. It is part of the US$240M needed to upgrade Ithezi Thezi power plant.

The increasing mining sector is estimated to consume about 50% of Zambia’s generated power. Under the agreement, Zambia’s state power utility and TATA Africa are expected to ensure the plant is rehabilitated and commissioned before the end of 2011.