PER Group Ventures (Private) Limited (PER) trading as PER Lusulu Power (company number 26269/2007), was formed with a specific vision to contribute to the much needed base-load energy shortage currently experienced in Zimbabwe and regional SADC countries within the Southern African Power Pool (SAPP). The company holds an Independent Power Producers license (GC00019) to generate 2,100MW of electricity in several phases: 1A of 350MW; 1B of 350MW; phase 2 of 700MW; and phase 3 of 700MW.
An EPC contract (engineering, procurement and construction contract) has been signed with China State Construction Engineering Corporation www.cscec.com. CSCEC are ranked 27th in Fortune 500 in 2016.
A Chinese lender has provided loan facility of 85% of the project capital cost.
Sinosure Buyers Credit Facility is being provided in support of the Chinese lender facility.
A nominal IRR of 18-20% on equity is targeted from estimated net cash flows.
SAPP/SADC regional power shortage is estimated to be over 8,247MW (Southern African Power Pool Annual Report, 2015, page 5). PER Lusulu Power will provide all Zimbabwe’s power needs and will make a significant contribution to the SADC/SAPP deficit.
Binga district coal deposits (known as the Lubimbi-Lubu-Lusulu Basin) contain over 10 billion tonnes of coal capable of supporting several large scale, long-life power plants for many decades. This is one of the largest unexploited high quality thermal and coking coal resources in Southern Africa. PER Lusulu Power project has been strategically located in the Binga district in order to maximise long life of the project.
The project uses environmentally-friendly clean coal ultra-supercritical technology.