Lusaka - European Union head of delegation in Zambia Derek Fee says the commission plans to finance the Southern and Eastern African power pool projects estimated at US$800 million needed to meet and sustain energy demands.
The commission will provide the $800 million loan to the two projects through a consortium of funders in which the European Investment Bank plans to contribute $100 million towards the project, Fee told local media.
"The funds will come through a consortium of lenders of which the European Investment Bank loan contribution will be $100 million out of the total $800 million," he said.
Zambia would also benefit from the Southern African power pool projects aimed at improving access to sustainable energy services and meet the increasing demand in the country.
"We are looking at a very large project estimated to cost $800 million to connect Eastern African power pool and Southern African power pool projects which will also connect Zambia," Fee said. The commission would concentrate on supporting the energy sector in Zambia.
He said the EU was also looking at financing the Capriv power connector between Zambia and Namibia.
The Zambians were already working on the project. The strategy for the EU this year was to support the energy sector and was considering funding the Itezhi-Tezhi power projects estimated to cost more than $200 million and generate about 120 megawatts of power when completed.
Last year, EU and African, Caribbean and Pacific (ACP) countries launched a new global energy facility worth more than $200 million (approximately K1, 300 billion) to contribute to poverty alleviation and protection of the environment under the Millennium Development
Goals.
The facility will be funded under the 10th European Development Fund (EDF) for the period 2009 - 2013.
The ACP-EU Energy Facility will focus on improving access to sustainable energy services in rural and peri-urban areas while fighting against climate change in ACP countries.
