EnPower signs Zambia-DRC interconnector financing deal with IFC

Enterprise Power DRC has recently inked a deal with the International Finance Corporation (IFC) to finance the construction of a 330 kV interconnector between Zambia and the Democratic Republic of Congo (DRC). This monumental project is estimated to cost around US$227 million and marks a significant milestone in the energy landscape of both countries. Emmanuel Chilombo Kalenga, the Managing Director of Enterprise Power Zambia, shed light on the importance of this deal and the transformative potential it holds for the region. Kalenga highlighted the historic nature of the project, stating that it will be the first privately developed and financed transmission line of its kind in sub-Saharan Africa. The collaboration between equity investors, development finance institutions (DFIs), and the IFC underscores the innovative financing structure underpinning the initiative. By interconnecting the DRC to Zambia and integrating them into the Southern African Power Pool, the project promises to bolster energy capacity and bolster supply in both countries. The DRC has long grappled with energy shortages, while Zambia faces challenges exacerbated by factors like drought. Kalenga emphasized that the interconnector represents a lifeline for both nations, offering a pathway to increased energy access and stability. The project timeline envisions a mid-2025 financial close, with a subsequent 30-month construction period towards commercial operation. Beyond addressing immediate energy deficits, the interconnector aligns with broader regional strategies for power sharing and grid optimization. By facilitating cross-border electricity trade, the project not only enhances energy security but also lays the groundwork for future interconnected transmission lines within the region. While the project holds immense promise, Kalenga acknowledged the inherent risks associated with infrastructure ventures of this scale. Geopolitical dynamics and stakeholder cooperation are critical factors that require diligent management to ensure the project's success. The presence of strategic partners like the IFC serves to mitigate these challenges and provide a solid foundation for sustainable project execution. Looking ahead, Kalenga expressed optimism about the potential for additional interconnected transmission lines in the region. He highlighted key governmental mandates in Zambia, such as Open Access and net metering, which signal a commitment to fostering a dynamic and inclusive energy ecosystem. These initiatives underscore Zambia's position as a trailblazer in embracing innovative energy policies and paving the way for future energy infrastructure developments. As the project progresses, Enterprise Power Zambia remains committed to driving positive change and catalyzing energy transformation in the region. The interconnector project stands as a testament to the power of collaboration, innovation, and shared vision in advancing sustainable energy solutions.