A Chinese firm signed a 243 million dollar deal on Tuesday to construct a new hydro-electric power station in Zambia, officials said.
Syno-hdyro Corporation of China will construct the Kariba North Bank power station on Zambezi river, about 225 kilometres (140 miles) south of the capital Lusaka, said Rodnie Sisala, managing director of Zambia Electricity Supply Corporation (Zesco).
Sisala said the project would supplement an already existing power station.
"It will be a 350 megawatt capacity plant. The construction will start early next year," Sisala told AFP.
The project will be mainly financed by a loan from the Export and Import Bank of China, which has agreed to provide 85 percent of the total cost while the remaining 15 percent will be generated from other sources.
Energy Minister Kenneth Konga said the project would be a significant boost to the energy capacity of Zambia, which has been experiencing rare blackouts in recent months.
"Bearing in mind the rapid electricity demand growth being experienced and the anticipated deficit, the country is in hurry to develop new power generation sources," Konga said.
