Maamba Collieries Limited (Maamba) has agreed terms with its anchor lenders for financing the construction and installation of another 300MW coal-fired power plant.
ZCCM Investments Holdings (ZCCM-IH), which holds 35% interest in Maamba announced via a market statement that construction of the power plant will commence next month and is expected to take 24 months, completing in July 2026.
Located in Sinazongwe District of Southern Province, Maamba will soon embark on constructing the second phase of its power plant at the same location as its first one of 300MW, operational since 2016. Phase II has always been on the cards but has now gained steam, against the backdrop of a debilitating power shortage.
Two generating units rated 150MW each will be added to the two identical existing units. The new plant will utilize the existing auxiliary facilities for support infrastructure, including the transmission line and coal preparation plant.
ZCCM-IH said the total project cost is estimated at US$400 million out of which US$300 million will be financed through a consortium of debt amounting to US$300 million. The national pension fund, NAPSA, is part of the consortium providing the debt.
Maamba has already signed a 20-year power purchase agreement with ZESCO Limited for power offtake of the additional generation.
It was established as a coal mine by the Zambian government in 1971 and privatized in 2010.
