China-Zimbabwe discussions on coal power plant

The government of Zimbabwe is holding talks with China Railway International over plans to build 1000 MW coal fired power plant.

If agreement is reached it would go some way towards easing the country’s energy shortages, which have paralyzed Zimbabwe’s industry.

Reuters reports that Energy Minister Elton Mangoma said Zimbabwe was considering options to boost output at existing facilities, while pursuing new projects, including the Western Areas coal project in Hwange where a 1 000 MW thermal plant is planned.

Analysts say Zimbabwe is unlikely to attract significant foreign investment due to President Robert Mugabe's empowerment law.

The law encapsulates a drive to force foreign firms, including mines and banks, to turn over 51 per cent of shareholdings to locals.

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