This large scale project will be developed in phases, starting with a 350MW supercritical integrated power plant, expanding ultimately to a 2100MW power plant in three by 700MW modules. The Feasibility Study was conducted by Pro-Consult, independently reviewed by ARUP and in association with numerous specialist sub consultants.
Power Plant Project Economics
The Project has entered into an engineering, procurement and construction (“EPC”) contract with China State Construction Engineering Corporation www.cscec.com. CSCEC are ranked 27th in Fortune 500 and have the balance sheet to bring the required debt finance via Sinosure Buyers Credit Facility with Bank of China. The Company is targeting a nominal equity IRR of at least 15% from estimated net equity cash flows.
Roadmap to Implementation
The PER Lusulu Power Plant Project has made significant progress towards achieving financial close. The following key project documents have been approved:
- Power Generation Licence Concession.
- Transmission licence.
- PER has been accorded to be a project of national status.
- Implementation Agreement with the Government have been granted and signed.
- The Environmental Social Impact Assessment has been approved.
- Coal Supply Agreements have been signed with the Coal Supplier.
- Water supply has been agreed.
Following signing of the Power Purchase and Transmission Agreements with ZETDC, Financial close is targeted for H2 2019.
- Construction starts in H2 2019.
- The power plant will be commissioned in H2 2022.
- Commercial operations will commence in Q1 2023.