Chinese company Sino-Hydro is in the running for a contract to construct a planned 600 megawatt thermal power station for coal miner, Makomo Resources although officials insist that they are still to put out a tender for the project.
Sino-Hydro has moved some of its machines to Makomo’s operations in Hwange and was helping the company carry out feasibility studies for the power station.
Makomo, situated in the Hwange coal belt, was last year producing in excess of 200,000 tonnes of coal per month and installed a $14 million coal washing plant.
But poor uptake from its main customers – Zimbabwe Power Company’s Hwange Station and small power stations in Bulawayo, Harare and Munyati – has forced the company to look at alternatives and was last year awarded a licence to operate a power station by the Zimbabwe Energy Regulatory Authority (ZERA).
Last week, Makomo Resources general manager Samson Mabvira told a local weekly that officials from Sino Hydro were preparing for the construction of the power station although the company had not been awarded the tender.
“Of course we are using some of (Sino-Hydro)’s equipment for other purposes but officially we have not awarded them the tender for the power station,” Mabvira told The Source on Thursday.
“We are still to advertise for the tender and that is when we will select the company which will construct the power station.”
Sino- Hydro is already constructing another power station of the similar size at Hwange Power Station after being contracted by Zimbabwe Power Company.
Mabvira said they were still to come up with cost of the project although the Hwange Power station project is estimated to cost $1,2 billion.