C Power Sector

-4-C-1-
C Power Sector

CPower Sector

C-1 Present Status of the Power Sector in Zambia
(1) Organization and Regulations
Electric utility in Zambia is under the jurisdiction of the Ministry of Energy and Water Development
(MEWD) and operates based on the policies established by MEWD. The Electricity Regulation Board
(ERB) under the Ministry supervises the power companies in accordance with the Electricity Act, Cap 433,
1995, 2003 and the Energy Regulation Act, Cap 436, 1995, 2003. For example, in the case of a power
company that requires tariff revision or a new company that wishes to participate in the power utility
business, approval must be obtained from the ERB.

At present, Zambia Electricity Supply Company (ZESCO) is the largest, and unequalled, electricity
company in Zambia, running and operating power stations, transmission lines, and distribution networks.
ZESCO shares are owned by the Government of Zambia. The other major power company is Copperbelt
Energy Company (CEC), which was established in 1997 after the privatization of a state-owned copper
mine. The company purchases electricity from ZESCO and retails it to copper mining companies. In 2003,
revision of the Electricity Act, Cap 433 allowed the participation of private companies, which have
subsequently begun selling electricity to ZESCO, generated by their own small hydropower stations.

Power supply in Zambia started with a small thermal station built in Livingstone in 1906 to provide power
to part of the town. In spite of the Victoria Falls hydropower potential, it was not until 1938 that
hydropower was first generated at a small station on the third gorge located downstream from Victoria
Falls, and other regions gradually became electrified by small thermal stations. The present ZESCO was
established from a state-owned electricity company formed by the consolidation of three major local
electricity companies in 1970 based on the Companies Act, Cap 388, 1970. The three companies are
Central Electricity Corporation Limited (CEC), the Northern Electricity Corporation Limited (NESCO),
and the Victoria Falls Electricity Board.

CEC was established in 1953 to supply electricity to
consumers in Lusaka, the capital of Zambia, and its
surroundings. NESCO succeeded the electric utilities
based on small hydropower stations in the eastern
countryside from the former Government of North
Rhodesia in 1960 and supplied electricity to mining
companies. NESCO also purchased electricity from
Copperbelt Power Company (CPC) and retailed it to
consumers in the Copperbelt distribution network.
The Victoria Falls Electricity Board, established in
Old coal-fired thermal power station at
ZESCO Head Office compound (15 MW)
The plant used imported coal and stopped operations after
completion of Kariba North Bank Hydropower Station.

-4-C-2-
Chapter 4 Sectoral Development Strategies

1951, supplied electricity generated by the aforementioned small hydropower station built downstream
from Victoria Falls in 1938.

The former ZESCO, a state-owned electricity company, was privatized in 1996 and became the present
government-owned Zambia Electricity Supply Company (ZESCO) in 2003 mainly because of financial
difficulties.
4)
In J une 2004, the Kariba North Bank Company Limited (KNBC), which had previously
retailed electricity to ZESCO, was integrated into the company. ZESCO is presently the largest, and
unequalled, electricity company in Zambia, running and operating power plants, transmission lines and
distribution networks.


















NOTES: Board of Directors chosen fromthe following institutions:
Engineering Institute of Zambia (EIZ)
Economic Association of Zambia (EAZ)
Zambia Farmers Union (ZFU)
Bankers Association of Zambia (BAZ)
Ministry of Energy and Water Development (Permanent Secretary)
Ministry of Finance (Secretary to the Treasury)

Source: ZESCO


Company secretary
SHAREHOLDERS
(GOVERNMENT)
BOARD OF
DIRECTORS
MANAGING
DIRECTOR
Director
Engineering
Development
Director
Finance
Director
Generation &
Transmission
Director
Distribution &
Supply
Director
Power Rehabilitation
Projects &
Generation Projects
Director
Human Resources
Director
Customer Services






















Figure C-1 Organization of ZESCO

-4-C-3-
C Power Sector

Rural electrification was implemented by the Department of Energy (DOE) of MEWD mainly through
expansion of transmission lines, which were constructed by ZESCO under a DOE subcontract funded by
the Rural Electrification Fund established in 1994. However, rural electrification projects did not progress
smoothly because of DOEs limited capabilities. Accordingly, MEWD formed a new organization, the
Rural Electrification Authority (REA), in order to promote rural electrification as well as establish the
Rural Electrification Act in 2003.

(2) Southern African Power Pool: SAPP
The Southern African Power Pool (SAPP) was established in 1995 to create an international power market
in the Southern African Development Community (SADC) by the seven original member countries. As of
2006, twelve of the fourteen SADC countries had joined SAPP: Botswana, Mozambique, Malawi, Angola,
South Africa, Lesotho, Namibia, Democratic Republic of Congo (DRC), Swaziland, Tanzania, Zambia, and
Zimbabwe. Nine of the twelve countries are already linked by interconnection lines (the exceptions are
Angola, Tanzania and Malawi) and are managing an international power market. SAPP has facilitated
broadband infrastructure in SADC in order to efficiently and effectively trade electric power among the
countries utilizing cheap electricity generated by coal-fired thermal plants in South Africa and abundant
hydropower potential in the other countries.

Zambia has two international interconnection lines to DRC and Zimbabwe with 220 kV and double circuits
of 330 kV lines, respectively. Through these
lines, Zambia participates in import and export
of power among SAPP countries and wheeling
between neighboring countries. Figure C-2
shows an interconnection line route with an
ongoing 220 kV line to Namibia and a new 330
kV route to Tanzania/Kenya.

A 220 kV interconnection line between the
Victoria Falls Substation in Zambia and the
Sesheke Substation in Namibia is now under
construction at a total estimated cost of
US$ 12 million with financial assistance from
the African Development Bank (ADB) and the
Development Bank of Southern Africa (DBSA).
The 230 km interconnection line is scheduled
for operation in May 2006. The line is planned
to reinforce the existing 66 kV line and extend
it to Namibia.

DRC
(SNEL)
Zambia
(ZESCO)
Zimbabwe
(ZESA)
Botswana
(BPC)
South Africa
(ESKOM)
Namibia
(NamPower)
Swaziland
(SEB)
Lesotho
(LEC)
Mozambique
(EDM)
220kV
2 x 330kV
Tanzania
(TANESCO)
330kV
Plan
Kenya
(KPLC)
220kV
under
construction
Figure C-2 Conceptual diagram of SAPP
interconnection line

-4-C-4-
Chapter 4 Sectoral Development Strategies

Another new 330 kV interconnection line is planned to link Zambia, Tanzania and Kenya. The
Memorandum of Agreement for its development was signed by three countries in March 2004, and
financial arrangements are ongoing. The line consists of 600 km in Zambian territory and the total
construction cost is estimated at US$ 350 million.

(3) Existing Power Facilities
The total installed capacity in Zambia was 1,838 MW as of February 2006, as shown in Table C-1. ZESCO
owned 1,700 MW and the remaining 138 MW power stations are owned by private companies such as
Copperbelt Energy Corporation (CEC) and Konkola Copper Mines (KCM). Most of the private companies
purchase electricity from ZESCO and retail it to mining companies. Gas-turbine power plants owned by the
private companies are maintained as standby emergency power. Two small hydropower stations,
Lunsemfwa (18 MW) and Mulungushi (20 MW), are owned by private companies that sell their power to
ZESCO.

The breakdown of installed capacity of ZESCOs plants as of February 2006 is presented below:

Hydropower plants (over 100 MW) 1,668 MW (98.1%)
Small hydropower plants 24 MW (1.4%)
Diesel power plants 8 MW (0.5%)
Total installed capacity 1,700 MW (100%)

The installed capacity of three hydropower plants owned by ZESCO, namely Kariba North (660 MW,
commissioned in 1976, upgraded by 60 MW in 2005), Kafue Gorge (900 MW, 1972) and Victoria Falls
(108 MW, 1936) shares 98% of the total installed capacity of ZESCO power plants. Small hydropower
plants have been synchronized to the National Grid step by step since they were developed as power
sources for independent power networks in the rural areas. At present, all four small hydropower plants are
synchronized as both Musonda Falls (5 MW) and Chishimba Falls (6 MW) were linked to the National
Grid in 2004. These four plants might have been the main power sources when ZESCO began supplying
power. Diesel power plants, which are still being operated in remote areas, will be abandoned after the
expansion of the National Grid because of their high generation costs at 1926/kWh. For example, the
Kaoma Diesel Power Plant (2.62 MW) is to be abandoned because the area is about to be linked with the
National Grid.


-4-C-5-
C Power Sector

Table C-1 Existing Power Stations
a. ZESCO
as of February 2006
Type of
Station
Station Name
Installed
Capacity
(MW)
Available
Capacity
(MW)
Number
of Unit
Unit
Capacity
(MW)
Commencement
Year
Remarks
Kariba North 660 660 2 180 1976, 2005 No.1 & 2 were upgraded from150 MW in 2005
2 150 1976 under rehabilitation
Kafue Gorge 900 600 4 150 1971-1972 under rehabilitation
2 150 1977 under rehabilitation
2
2
1
3
1936 Station A, rehabilitation completed
108 6 10 1968 Station B, rehabilitation completed
4 10 1972 Station C, rehabilitation completed
1,668 1,368
Lusiwasi 12 12 4 3 1970, 75 already synchronized
Musonda Falls 5 5 5 1 1960, 72, 77, 82 synchronized to National Grid in 2004
Chishimba Falls 6 6 1960, 68, 73, 75 synchronized to National Grid in 2004
Lunzua River 0.75 0.75 3 0.25 1960 already synchronized
23.75 23.75
Mwinilunga 1.13 1.13
Kabompo 1.13 1.13
Zambesi 0.42 0.42
Mufumbwe 0.76 0.76
Kaoma 2.62 2.40
Luanggwa 0.29 0.29
Lukulu 0.51 0.51
Chama 0.53 0.53
Kaputa 0.67 0.67
8.05 7.83
1,699.802 1,399.582
b. Private Owned Power Stations
Type of
Station
Station Name
Installed
Capacity
(MW)
Available
Capacity
(MW)
Number
of Unit
Unit
Capacity
(MW)
Commencement
Year
Remarks
Bancroft 20 20 2 10 1972 CEC
Luano 40 40 2 20 1969 CEC
Luanshya 10 10 CEC
Hydro Lunsemfwa 18 18 3 6 1944 owned by private
GT Mufulira 10 10 1 10 CEC
Hydro Mulungushi 20 20 4 2 to 6 1924, 27, 39 owned by private
GT Nkana 20 20 1939 KCM
138 138
CEC: Copperbelt Energy Corporation GT: Gas Turbine Power Station
KCM: Konkola Copper Mines Hydro: Hydropower Station
Gr and Total
Sub Total
Gr and Total
Diesel
GT
Sub Total
Mini
Hydro
108 Victoria Falls
Sub Total
Hydro


(4) Transmission and Distribution Facilities
The National Grid consists of transmission lines of 330 kV, 220 kV, 132 kV, etc. that cover areas linked
with Livingstone, Lusaka, the Copperbelt, and three major hydropower stations, as shown in Fig. C-3.
Interconnection lines of 330 kV (2 circuits) and 220 kV extend to Zimbabwe and DRC, respectively. The
interconnection line to Zimbabwe runs into South Africa and forms part of SAPP. The National Grid is also
linked to Tanzania and Namibia by interconnection lines of 66 kV so as to export electricity from Zambia
to both countries.

-4-C-6-
Chapter 4 Sectoral Development Strategies

PROPOSED
HYDROPOWERSTATION
PROPOSED
DIESEL STATION
D R
CONGO
TANZANIA
M
A
L
A
W
I
MOZAMBIQUE
ZIMBABWE
NAKONDE
KASAMA ISOKA
CHINSALI
MPOROKOSO
LUWINGU
MPIKA
PENSULO
SERENJE
CHIPATA
CHIRUNDU
LEOPARDS HILL
KARIBA SOUTH
MUSONDA FALLS
(5MW)
LUSIWASI
(12MW)
MULUNGUSHI
(20MW)
MSORO
LUNDAZI
MFUE
AZELE
LUNSEMFWA
(18MW)
CHISHIMBA FALLS
LUNZUA
(0.75MW)
MBALA
SAMFYA
KASHIKISHI
PETAUKE
MOMBUTUTA
CHIENGI
LU
A
PU
LA
R
IV
ER
ToSumbuwanga
KALUNGWISHI RIVER
MPULUNGU
NAMIBIA
BOTSWANA
ANGOLA
KALABO MONGU
SENANGA
SESHEKE
SOLWEZI
ITEZHI TEZHI
(120MW)
VICTORIA
FALLS
(108MW)
MUZUMA
MICHELO
LUANO
KITWE
MAPOSA
KANSUSWA
KABWE
KAPIRI
MPOSHI
MPONGWE
LUSAKA WEST
KAFUE WEST KAFUE TOWN KAFUE LOWER
(750MW) KAFUE GORGE
900MW(1080MW)
KARIBA NORTH
(600MW(750MW)
LAKE KARIBA
MAZABUKA
MUMBWA
MANSA
MAMBILIMA
K
A
F
U
E
R
IV
E
R
Z
A
M
B
E
Z
I
R
IV
E
R
C
H
A
M
B
E
S
H
I
R
IV
E
R
WEST LUNGA
at West LungaRiver
(2.5MW)
KASEMPA
CHIKATA FALLS
(3.5MW)
MUFUMBWE
LUKULU
KAOMA
220kV
22
o
East
33.5
o
East
8
o
18
o
KATIMA
MULILO
ZAMBEZI
LUANGWA
132kV
88kV
66kV
330kV
EXISTING
POWERSUBSTATIONS
AND POWER LINES
PROPOSED
POWERSUBSTATIONS
AND POWER LINES
330kV
220kV
132kV
88kV
66kV
HYDROPOWERSTATION
SUBSTATION
DIESEL STATION
PROPOSED
SUBSTATION
CHONGWE
CHAVUMA
KABOMPO
MWINILUNGA
KANSANSHI
LUMWANA
(Mine)
KAPUTA
NCHELENGE
CHAMA
KUNDABWIKA
(101MW)
KABWELUME
(62MW)
KAWAMBWA
TEA
MBERESHI
LUSIWASI
EXTENSION
(40MW)
KARIBA NORTH
EXTENSION
(600MW(750MW)
BATOKA GORGE
(800MW)
DEVILSGORGE
(800MW)
BWANA
MKUBWA
ROMA
COV.
NAMPUNDWE
MAAMBA
KATIMA
MULILO
KABOMPOGorge
(34MW)
Luangwa
Bridge
Mkushi
Mkushi
FarmBlock
Mkushi Central
Kawambwa
Town
Chambasitu
SHANGOMBO
MUYOMBE
ZESCO GRID (66 330kV)
D R
CONGO
TANZANIA
M
A
L
A
W
I
MOZAMBIQUE
ZIMBABWE
NAKONDE
KASAMA ISOKA
CHINSALI
MPOROKOSO
LUWINGU
MPIKA
PENSULO
SERENJE
CHIPATA
CHIRUNDU
LEOPARDS HILL
KARIBA SOUTH
MUSONDA FALLS
(5MW)
LUSIWASI
(12MW)
MULUNGUSHI
(20MW)
MSORO
LUNDAZI
MFUE
AZELE
LUNSEMFWA
(18MW)
CHISHIMBA FALLS
LUNZUA
(0.75MW)
MBALA
SAMFYA
KASHIKISHI
PETAUKE
MOMBUTUTA
CHIENGI
LU
A
PU
LA
R
IV
ER
ToSumbuwanga
KALUNGWISHI RIVER
MPULUNGU
NAMIBIA
BOTSWANA
ANGOLA
KALABO MONGU
SENANGA
SESHEKE
SOLWEZI
ITEZHI TEZHI
(120MW)
VICTORIA
FALLS
(108MW)
MUZUMA
MICHELO
LUANO
KITWE
MAPOSA
KANSUSWA
KABWE
KAPIRI
MPOSHI
MPONGWE
LUSAKA WEST
KAFUE WEST KAFUE TOWN KAFUE LOWER
(750MW) KAFUE GORGE
900MW(1080MW)
KARIBA NORTH
(600MW(750MW)
LAKE KARIBA
MAZABUKA
MUMBWA
MANSA
MAMBILIMA
K
A
F
U
E
R
IV
E
R
Z
A
M
B
E
Z
I
R
IV
E
R
C
H
A
M
B
E
S
H
I
R
IV
E
R
WEST LUNGA
at West LungaRiver
(2.5MW)
KASEMPA
CHIKATA FALLS
(3.5MW)
MUFUMBWE
LUKULU
KAOMA
220kV
22
o
East
33.5
o
East
8
o
18
o
KATIMA
MULILO
ZAMBEZI
LUANGWA
132kV
88kV
66kV
330kV
EXISTING
POWERSUBSTATIONS
AND POWER LINES
PROPOSED
POWERSUBSTATIONS
AND POWER LINES
330kV
220kV
132kV
88kV
66kV
HYDROPOWERSTATION
SUBSTATION
DIESEL STATION
PROPOSED
SUBSTATION
CHONGWE
CHAVUMA
KABOMPO
MWINILUNGA
KANSANSHI
LUMWANA
(Mine)
KAPUTA
NCHELENGE
CHAMA
KUNDABWIKA
(101MW)
KABWELUME
(62MW)
KAWAMBWA
TEA
MBERESHI
LUSIWASI
EXTENSION
(40MW)
KARIBA NORTH
EXTENSION
(600MW(750MW)
BATOKA GORGE
(800MW)
DEVILSGORGE
(800MW)
BWANA
MKUBWA
ROMA
COV.
NAMPUNDWE
MAAMBA
KATIMA
MULILO
KABOMPOGorge
(34MW)
Luangwa
Bridge
Mkushi
Mkushi
FarmBlock
Mkushi Central
Kawambwa
Town
Chambasitu
SHANGOMBO
MUYOMBE
ZESCO GRID (66 330kV)

Source: ZESCO presentation material

Figure C-3 National Grid in Zambia

The total length of transmission lines in the National Grid was 6,678 km as of March 2005, as shown
below:
330 kV 2,236 km
220 kV 348 km
132 kV 229 km
88 kV 817 km
66 kV 3,048 km
Total 6,678 km

Power supply through distribution lines in Lusaka has
a long history starting with a coal-fired thermal power
station (15 MW) before the three major hydropower
stations were constructed in the 1970s. However,
there are still unelectrified areas even in Lusaka, the countrys capital, due to exponential growth of
population and rapid urbanization. Livingstone and Ndola, main towns in their region, have similar
problems such as insufficient transformer capacity, deteriorating distribution networks, etc. The Power
Rehabilitation Project (PRP) was commenced with financial assistance (US$ 250 million) from the World
Bank, African Development Bank, etc. mainly to rehabilitate and upgrade the three major hydropower
Coventry Street Substation in Lusaka
2 25 MVA 132/11 kV
(February 16, 2006)

-4-C-7-
C Power Sector

stations including part of the transmission lines and substations.

The Central Load Dispatching Center in Lusaka monitors and controls the operation of the National Grid.
In J uly 1996, the SCADA (Supervisory, Control and Data Acquisition) system was introduced in the
Central Load Dispatching Center, and four power stations and twenty substations are being monitored and
controlled. In addition to this system, the micro SCADA is also employed in Lusaka and Kitwe for detailed
monitoring and control, which enhances effective operation by shortening the duration of emergency
blackouts.

(5) Power Supply and Demand
As of February 2006, the available
capacity of ZESCO-owned power
stations was 1,400 MW; two 300 MW
units at the Kafue Gorge Hydropower
Station were not operating due to the
Power Rehabilitation Project (PRP).
Meanwhile, a peak load of 1,294 MW
was recorded in J uly 2004, and SAPP
forecasts a peak load of 1,374 MW in
2006/07. This means that the National
Grids present reserve margin is only
26 MW. According to the PRP schedule
provided by ZESCO, the Kariba North Bank Hydropower Station will be stopping one 150 MW unit in
August 2006, and the Kafue Gorge Hydropower Station will be stopping at least two 300 MW units in 2006.
In Kafue Gorge, two units should be rehabilitated at once as one main transformer per two units was
installed. This critical situation for power supply and demand will continue until J une 2008 when PRP is
completed. The amount of electricity shortage due to PRP or low generation in the dry season will be
imported through SAPP or load shading will be carried out. If surplus electricity is expected, it will be
exported through SAPP. The import amount was 417 GWh in 2004/05, which is equivalent to 5% of the
total consumption in the same year, and 229 GWh in 2003/04, which is almost half of the following years
amount. This is imported mainly from South Africa, and the others from DRC and Zimbabwe. The export
amount was 188 GWh in 2004/05 and 491 GWh in 2003/04. Since the PRP continues to stop part of the
operation of the three major hydropower stations, the export amount decreases and the import amount
increases. The wheeling amount was 1,332 GWh in 2004/05.
Figure C-4 Peak load and power demand
Source: Data fromZESCO Annual Report, 2005 and SAPP forecast
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000

1
9
8
2
/
8
3

1
9
8
4
/
8
5

1
9
8
6
/
8
7

1
9
8
8
/
8
9

1
9
9
0
/
9
1

1
9
9
2
/
9
3

1
9
9
4
/
9
5

1
9
9
6
/
9
7

1
9
9
8
/
9
9

2
0
0
0
/
0
1

2
0
0
2
/
0
3
2
0
0
4
/
0
5
2
0
0
6
/
0
7
2
0
0
8
/
0
9
2
0
1
0
/
1
1
2
0
1
2
/
1
3
A
n
n
u
a
l

E
n
e
r
g
y

S
e
n
t

O
u
t

(
G
W
h
)
200
400
600
800
1,000
1,200
1,400
1,600
1,800
M
a
x
.

D
e
m
a
n
d

(
M
W
)
Eergy Sent Out (GWh) Forcasted Energy Sent Out (GWh)
Max. Demand (MW) Forcasted Max. Demand (MW)

-4-C-8-
Chapter 4 Sectoral Development Strategies

The maximum peak load appears in J une
or J uly during the dry season (from May
to September), as shown in Fig. C-5,
which presents the monthly peak load and
demand in the National Grid. During the
wet season, the peak load tends to
decrease. The peak load for 2004/05 in
the wet season is lower than that for
2003/04, which apparently resulted from
power outages due to PRP.
The total amount of ZESCO generation
output was 8,228 GWh in 2004/05.
ZESCO supplied 3,932 GWh to Copperbelt Energy Company (CEC) and 4,296 GWh to other consumers.
As shown in Fig. C-6, the amount of energy for CEC fluctuates depending on the market price of copper.
However, the amount of energy for other consumers has been increasing steadily, except in 2000/01 and
2001/02. The growth rate of supplied energy for other consumers exceeds 6% per year for these three years.
Power demand by sector and region is presented in
Figs. C-7 and C-8, respectively. According to
Fig. C-7, Quarries is the largest consumer, with
54% of the total consumption. Domestic is the
second largest, with 34%, and Services 6%.
Regarding Fig. C-8, the Copperbelt is the largest
consumer, with 63%. Lusaka is the second largest,
with 20%. The two regions have an 83% share of the
countrys total consumption, which means that
consumers are concentrated in the Copperbelt and
Lusaka.


ZESCO Retail Consumption by Sector in 2004/05
0.03%
6%
34%
54%
0.4%
4%
0.1%
1%
1%
Agriculture
Quarries
Manufacturing
Transport
Commerce
Domestic
Services
Construction
Others

ZESCO Retail Consumption by Region in 2004/05
20.0%
8.4%
62.6%
9.0%
Lusaka
Southern
Copperbelt
Northern

Figure C-7 Energy consumption by sector Figure C-8 Energy consumption by region
(GWh) (%)
Source: Data from ZESCO Annual Report, 2005 Source: Data from ZESCO Annual Report, 2005
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
1
9
9
5
/
9
6
1
9
9
6
/
9
7
1
9
9
7
/
9
8
1
9
9
8
/
9
9
1
9
9
9
/
2
0
2
0
0
0
/
0
1
2
0
0
1
/
0
2
2
0
0
2
/
0
3
2
0
0
3
/
0
4
2
0
0
4
/
0
5
S
u
p
p
l
i
e
d

E
n
e
r
g
y
(
G
W
h
)
Bulk Supplies to CEC Bulk Supplies to ZESCO
Figure C-6 ZESCO supplied energy (GWh)
Source: Data from ZESCO Annual Report, 2005
500
550
600
650
700
750
800
850
900
950
1,000

A
p
r

M
a
y

J
u
n

J
u
l

A
u
g

S
e
p

O
c
t

N
o
v

D
e
c

J
a
n

F
e
b

M
a
r
M
o
n
t
h
l
y

E
n
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r
g
y

S
e
n
t

O
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t

(
G
W
h
)
200
400
600
800
1,000
1,200
1,400
M
a
x
.

D
e
m
a
n
d

(
M
W
)
04/05 Energy Sent Out (GWh) 03/04 Energy Sent Out (GWh)
04/05 Peak Load (MW) 03/04 Peak Load (MW)
Figure C-5 Monthly peak load and demand
Source: Data from ZESCO Annual Report, 2005

-4-C-9-
C Power Sector

(6) Power Development Plan
The three major hydropower stations will be upgraded by 210 MW, as shown below, after completion of
the Power Rehabilitation Project (PRP), which is being conducted with the assistance of the World Bank,
African Development Bank, etc. Completion of PRP is planned for J une 2008.

Table C-2 Rehabilitation/Upgrading of 3 Major Hydropower Stations
Station Before PRP After PRP Remarks
Kafue Gorge 900 MW
(=6 units 150 MW)
990 MW
(=6 units 165 MW)
2 units under rehabilitation to be completed in
April 2006
Completion in December 2007
Kariba North 600 MW
(=4 150)
720 MW
(=4 180)
Nos. 1 and 2 completed
No. 3 to be rehabilitated starting August 2006
Completion in June 2008
Victoria Falls 108 MW (=2 1 +2 3 +
6 10 +4 10)
108 MW
(=2 1 +2 3 +6 10 +4
10)
Completed in March 2005
Total 1,608 MW 1,818 MW
(Upgraded by 210 MW)


At present, three hydropower development plans, namely Kafue Gorge Lower (750 MW), Itezhitezhi
(120 MW) and Kariba North Bank Extension (360 MW) are on the table for ZESCO.

Kafue Gorge Lower (750 MW)
Following the signing of the Memorandum of Understanding between Sinohydro and ZESCO for
cooperative development of Kafue Gorge Lower, the two parties have held several discussions. In order to
fine-tune the site selection of the reservoir, a study was commenced by the two parties to review the
previous feasibility study (1995) and determine the preferred site and maximum plant capacity. This study
was awarded to MWH Americas Inc. consultants in conjunction with ESCO.

Financial matters have so far been discussed with both Sinohydro and the China Export Import (EXIM)
Bank to reach an agreement on the funding modalities. The project is expected to be mainly financed by
EXIM (85%) while the balance (15%) would be raised internally by ZESCO. However, further discussions
on financing structure are to be held after completion of the study, which is scheduled for March 2006.
Various technical and financial matters are expected to be finalized and agreed upon, and the
Implementation Agreement signed before the end of this year.

The project cost is estimated at US $740 million and implementation is anticipated to take 45 years.


-4-C-10-
Chapter 4 Sectoral Development Strategies

Itezhitezhi (120 MW)
In 2003, the Government approached the Islamic Republic of Iran about a partnership in developing hydro
potential in Zambia. To this affect, the Government allowed ZESCO to work with the FARAB Company of
Iran, and discussions were subsequently held between ZESCO and FARAB on technical, commercial and
financial matters for developing the project. This led to the signing of a Memorandum of Understanding
between ZESCO and FARAB in 2004. Discussions were then held with the Export Development Bank of
Iran (EDBI) who indicated their willingness to put up 85% of the financing for the power station with the
remaining 15% to be sourced elsewhere by ZESCO.

It is expected that technical and financial issues will be finalized soon (during the first quarter of this year)
so that an Implementation Agreement can be signed thereafter, paving the way to commencement of the
main works within this year. The project is expected to take 4 years and the cost is estimated at
US$ 120 million.

Kariba North Bank Extension (360 MW)
In 2003, the Government signed a Letter of Intent with Sinohydro of China to extend the Kariba North
Power Station in partnership with ZESCO. A feasibility study was prepared and submitted to ZESCO for
review by Sinohydro of China. Discussions on financial matters have been held with Sinohydro and the
EXIM Bank of China who has indicated their willingness to finance up to 85% of the project cost, with
ZESCO sourcing the remaining 15%. The financial terms were discussed with ZESCO and are presently
being reviewed. A meeting is planned soon for further discussions with EXIM on the financing details.
The project cost is estimated at US$ 300 million and is expected to take about 3.54 years.

At a meeting held in February 15, 2006, the Ministry of
Energy and Water Development (MEWD) stated their
desire to develop biomass energy as well as solar energy.
They have experience in rural electrification using SHS
(Solar Home System) for 400 households in the three
villages of the Eastern Province from 1999 to 2000 with
the assistance of the Swedish International Development
Cooperation Agency (SIDA). They have never been
involved in a biomass development project and have no
concrete plans. However, they have a development plan for a geothermal plant this year. For rural
electrification in the Northern Province, ZESCO plans to construct a distribution network in 2005/06 from
the geothermal plant (200 kVA) built by Italy in 1987 next to Lake Tanganyika in Nsumbu.

Although we could not confirm the existence of a Power Development Plan to be prepared by the MEWD
or ZESCO during our survey of February 2006, the Ministry provided the following project list for which
they expected assistance from the J apanese government.

Geothermal Plant in Nsumbu
Source: ZESCO

-4-C-11-
C Power Sector


Table C-3 Projects Proposed for Japan ODA
Project Name Information Obtained by Interviews
New Generation Project
1 Kabompo River Chikata Falls (3 MW) Possibly 10 MW
2 Chavuma Falls (15 MW) Possibly 20 MW
3 Kabompo Gorge (34 MW)
4 Luapula Hydro Development (950 MW) No priority set as it is on the border with Congo
5 Botoka Gorge (800 MW) on Zambezi River FS & DD finished by ZRA
6 Devils Gorge (800 MW) on Zambezi River No study
7 Manshya Falls (1 MW) Studied by UNIDO
8 Lufupa River (2.3 MW) Reconnaissance study completed
9 Lunga River, Mutanda (0.4 MW) Possibly 100 kW less
10 Luakela River, Sachibodo (0.6 MW) Possibly 150 kW less
Rehabilitation of Old Generation Power Projects
11 Chishimba Mini-Hydro Station (6 MW)
12 Lunzuwa Mini-Hydro Station (0.75 MW)
13 Lusiwasi Power Station (12 MW)
14 Musonda Falls Power Station (5 MW)
Rural Electrification Projects
15 Connection of Luangwa to the National Grid To benefit 19,000 people in Luangwa
16 Connection of Kaputa to the National Grid To benefit 88,000 people in Kaputa
Biomass Project
17 Capacity building and awareness on production and use of biofuels (ethanol and biodiesel)

(7) Electricity Tariff
ZESCO has two tariff systems, regulated and non-regulated. As shown in the following Table C-4, the
regulated system is applied to residential (domestic), commercial, social service, agricultural, and industrial
consumers. The previous tariff was revised in May 2005, raising the cost for each consumer by 11%. This
system was approved by the Energy Regulation Board in accordance with the Electricity Act, Cap 433,
1995, 2003. The non-regulated system, in which the tariff can be negotiated prior to entering a contract, is
applied to bulk supply to mining companies and export to neighboring countries through high-voltage
interconnection lines, etc. For example, the tariff on bulk supply to Lumwana Mine from the ZESCO
substation through a 330 kV transmission line is now under negotiation with the owner, Equinox Company.

-4-C-12-
Chapter 4 Sectoral Development Strategies


Table C-4 Power Tariffs of ZESCO

ZESCO LIMITED
REVISION OF ELECTRICITY TARIFFS


1. UNMETERED RESIDENTIAL TARIFFS Current Approved
Tariffs Tariffs
L1: Consumption up to 2 Amps Energy Charge/Month K 4,424.00 K 4,911.00
L2: Consumption between 2 15 Amps Energy Charge/Month K 16,009.00 K 17,770.00


2. METERED RESIDENTIAL TARIFFS (Capacity 15 kVA)

R1: Consumption up to 300 kWh Energy Charge/kWh K 63.00 K 70.00
R2: Consumption 301 to 700 kWh Energy Charge/kWh K 90.00 K 100.00
R3: Consumption above 700 kWh Energy Charge/kWh K 147.00 K 163.00
Fixed Monthly Charge K 5,266.00 K 5,845.00

3. COMMERCIAL TARIFFS (Capacity 15 kVA)

C1: Consumption Energy Charge/kWh K 147.00 K 163.00
Fixed Monthly Charge K 26,331.00 K 29,227.00


4. SOCIAL SERVICES TARIFFS

Schools, Hospitals, Orphanages, Energy Charge/kWh K 122.00 K 135.00
Churches, Water Pumps, Street Lights Fixed Monthly Charge K 21,065.00 K 23,382.00


5. MAXIMUM DEMAND TARIFFS

MD1: Capacity between 16300 kVA MD Charge/kVA/Month K 6,255.00 K 6,943.00
Energy Charge/kWh K 90.00 K 100.00
Fixed Monthly Charge K 61,263.00 K 68,002.00

MD2: Capacity between 3012000 kVA MD Charge/kVA/Month K 11,703.00 K 12,990.00
Energy Charge/kWh K 77.00 K 85.00
Fixed Monthly Charge K 122,525.00 K 136,003.00

MD3: Capacity between 20017500 kVA MD Charge/kVA/Month K 17,646.00 K 19,587.00
Energy Charge/kWh K 57.00 K 63.00
Fixed Monthly Charge K 245,050.00 K 272,006.00

MD4: Capacity above 7500 kVA MD Charge/kVA/Month K 17,744.00 K 19,696.00
Energy Charge/kWh K 47.00 K 52.00
Fixed Monthly Charge K 490,101.00 K 544,012.00
NOTE:
The above tariffs do not include:
(a) 5% Government Excise Duty
(b) 17.5% Value Added Tax (VAT)

May 1, 2005




-4-C-13-
C Power Sector

Figure C-9, which is based on ZESCO
presentation materials, shows average tariffs in
South African countries. The average for
residential, commercial, and industrial
consumers was calculated on the use of
900 kWh, 5,000 kWh, and at a load factor of
80% of 2,500 kVA, respectively. The average
tariff for residential, commercial, and
industrial consumers in Zambia is 3.1, 4.8, and
3.4/kWh, respectively, which is rather cheap
compared with the rates in other South African
countries.

(8) Technical Standards
Since 1997, ZESCO has been working to achieve standardization for stable and reliable power supply and
enhancement of services for consumers. Technical standards for transmission/distribution facilities and
electricity meters to be provided to consumers are based on the technical standards of the International
Electrotechnical Commission (IEC). Service manuals have also been prepared for speedy and efficient
consumer service. Everything has been computerized into the Business Information System (BIS), enabling
easy access on our computer screens.

(9) Capacity Development
As of March 2005, 3,722 people were employed at
ZESCO. In 2004/05, ZESCO sent 66 employees to attend
a local training course and 14 to attend courses in foreign
countries. In total, 405 employees participated in
workshops and seminars.

There are two training centers for ZESCO employees in
Zambia: the Kafue Gorge Regional Training Centre
(KGRTC) and the ZESCO Training Center (ZTC) in
Ndola. KGRTC is open to SADC member countries, and
participants can receive training mainly on the operation and maintenance of hydropower stations. The
Center has a simulator for hydropower station operations as well as training programs on the SCADA
system and GIS.

ZTC, which was established in 1970 for ZESCO employees in Ndola, provides training mainly on the
operation and maintenance of transmission and distribution facilities. The buildings and facilities for
training have already aged and suffered deterioration, adversely affecting some of the training programs.
0.00
0.02
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0.06
0.08
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P
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(
U
S
$
/
k
W
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)
Domestic
900kWh
Commercial
5,000kWh
Industry
2,500kVA@80%LF
Figure C-9 Average electricity tariffs in South African
Countries
Source: Data from ZESCO presentation material
Kafue Gorge Regional Training Centre
(February 17, 2006)

-4-C-14-
Chapter 4 Sectoral Development Strategies

ZESCO has developed a detailed plan for rehabilitating and updating the training programs at ZTC as one
of the PRP schemes. However, the budget has not yet been arranged because of unexpected excessive costs
for rehabilitating existing major hydropower stations in PRP.

(10) Environmental Impact Assessment System
The Environmental Council of Zambia (ECZ) was established under the Ministry of Environment and
Natural Resources, which is responsible for conservation of the countrys environment in accordance with
the Environmental Protection and Pollution Control Act, Cap 204, 1990. In 1997, the Environmental
Impact Assessment Regulation, 1997 (EIA Regulation) was enacted and a system was set up for assessing
development projects in Zambia. Moreover, several other laws and regulations were also enacted in relation
to national parks, wildlife, cultural heritage, agriculture, forestry, fishery, mines, water resources, etc. The
majority of developers of power projects are required by EIA Regulation to carry out an environmental
impact assessment. Developers should ask ECZ for approval to proceed with their projects following the
sequence below:

a. Before project implementation, developers shall prepare a Project Brief when projects are
categorized under the conditions designated in the EIA Regulation. The following are the
conditions related to power projects:
- Hydro power schemes and electrification
- Resettlement schemes
- Projects located in or near environmentally sensitive areas

b. After approval of the Project Brief, developers shall carry out a study for environmental impact
assessment when projects are categorized under the conditions designated in the EIA Regulation.
The terms of reference and experts for the study are subject to the approval of ECZ. Developers
shall compile the results of the study into an Environmental Impact Statement and submit it to
ECZ for approval.
The following are the conditions related to power projects:
Dams, Rivers, and Water Resources
- Dams and weirs covering a total area of 25 ha or more
- Exploration for, and use of, groundwater resources including production of geothermal energy
(water to be extracted to be more than 2 million cumecs (m
3
/s)).

-4-C-15-
C Power Sector

Electrical Infrastructure
- Electricity generation station
- Electrical transmission lines 220 kV and more than 1 km long
- Surface roads for electrical and transmission lines more than 1 km long
According to the above conditions, most power projects will require an environmental
impact assessment, excluding short-distance or low-voltage transmission line projects,
distribution line projects, renewable energy projects, etc. unless the projects are located
within safe areas not specified by the EIA Regulation.

c. During and after project implementation, developers are required to monitor the environment in
and around their project area for a specified period.

The EIA Regulation obliges developers to disclose project information to inhabitants through mass media
and a public hearing, and to include at least one person in their study team who is a resident in the
potentially affected area. Moreover, the EIA Regulation includes a penalty clause whereby a developer who
violates the EIA Regulation shall be guilty of an offence and shall be liable, upon conviction, to fine or
imprisonment for a period not exceeding three years, or both.


-4-C-16-
Chapter 4 Sectoral Development Strategies

C-2 Current Problems and Issues
(1) Low Electrification Rate
Like many other sub-Sahara countries, Zambia is
heavily indebted and in financial difficulty. Zambia is
one of the low-level development countries in power
generation and transmission facilities, and
infrastructure. The principal reason for the low
electrification rate, less than 20% compared to the
present population, is the countrys poor financial
situation, and the following reasons are considered:
As it was made a priority to supply power to copper
mines, which is the main industry in Zambia and
occupies 90% of acquisition of foreign currency, the
development of power facilities has been centralized in
the Copperbelt. Power supply to the Copperbelt
occupies half of ZESCOs total generation even now.

Zambia has a land area of 750,000 km
2
and a population of 11 million. Therefore, the average population
density is rather low, i.e. 15 persons/km
2
. Fifty percent of the population lives in urban areas; thus, the
population density in rural areas is further below. The phenomenon of underpopulation is one of the
reasons for the delay in electrification in rural areas since the advantageous effect against investment is so
weak.

On the other hand, even though power supply started in the beginning of 1900, the electrification rate in
urban areas is still low. Presumably, with the rapid increase in urban population, distribution expansion
could not catch up to supply power to these new consumers because of a lack of transformer capacity.
Figure C-10 shows the fluctuation in population density by region. It can be seen in this figure that the
population of Lusaka and Copperbelt is soaring. The population density in Lusaka has increased by more
than 3% every year since 1990. Therefore, there is an unelectrified area even in the capital, Lusaka, as the
distribution network could not be constructed in time.

(2) Aging Power Generation Facilities
As shown in Table C-1, the power generation facilities in Zambia were constructed in the 1960s and 1970s,
and there are no power plants constructed after that time. Three hydropower plants and part of substation
facilities are under rehabilitation or planned to be upgraded through the ongoing PRP; however, most of the
small hydropower plants and transmission/distribution facilities are presumably maintained as is for a long
time. In particular, the small hydropower plant that was the independent power source at the time ZESCO
was established is very old. Therefore, it is necessary to survey the present condition of the plant and to
propose the necessary rehabilitation plan including low-voltage transmission lines.
0
10
20
30
40
50
60
70
Z
a
m
b
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a
C
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t
r
a
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(
p
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p
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l
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t
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n
/
s
q
.

k
m
)
1969 1980 1990 2000
Figure C-10 Population density
by region
Source: 2000 Census of Population and Housing

-4-C-17-
C Power Sector


(3) High Distribution Loss
ZESCOs transmission and distribution losses in the year
2004/2005 were 2.9% and 18.1%, respectively. As shown
in Fig. C-11, the distribution loss seems to be decreasing;
however, it is still high.
According to ZESCO, most of the distribution loss is due to
non-technical reasons such as illegal power use, alteration
of meter devices and excessive use of electricity by flat-rate
power users. Supervisors conduct round-the-clock
surveillance to monitor illegal power use, and as a result
have contributed to reducing illegal use. ZESCO has also
introduced a prepaid card system for payment of electricity
charges and installed new electricity meter devices that accept prepaid cards to prevent the use of electricity
exceeding the charge paid. In the year 2002/2003, the experimental installation of prepaid system devices at
900 households in Lusaka showed good results for preventing illegal power use. Based on this experiment,
ZESCO implemented the US$ 2 million project last year to disseminate this new device.
On the other hand, technical loss has its roots in degradation of distribution facilities. Rehabilitation of
distribution facilities is expected to be conducted in series starting with the major cities.

Figure C-11 Transmission/distribution loss
of ZESCO
Source: Data fromZESCO Annual Report, 2005
0
5
10
15
20
25
30
35
1
9
9
8
/
9
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9
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/
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L
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s

R
a
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(
%
)
Transmission Losse Distribution Losse

-4-C-18-
Chapter 4 Sectoral Development Strategies

C-3 Policy for Power Development
5)

Presently, the Zambian Government is preparing a National Development Plan (NDP) in which each sector
is represented. We were informed during our survey in February 2006 that a draft of the power sector had
already been submitted to the Government and it would be released soon. The draft may have presented the
development plan to achieve the target set up in the Zambia Poverty Reduction Strategy Paper (PRSP),
2002-2004, which was developed under the guidance of the World Bank and the International Monetary
Fund in May 2002.
According to the PRSP, the development policy and strategy for the power sector are as follows:

(1) National policy for the energy sub-sector
a) Electricity: Increase accessibility in its use as well as the most cost-effective generating sites
for domestic and export markets.
b) New and Renewable Sources of Energy: Promote wider application of proven NRSE
technologies in meeting energy needs, particularly for remote areas.

(2) Programs in the energy sector
Programs in the energy sector to contribute to poverty reduction will aim at the following:
a) Electricity access rate from 20 to 35% by 2010: rural 15% and urban 50%
b) Increase in electricity exports to neighboring countries by 300% by 2010 from the current
level.

(3) PRSP strategies for poverty reduction in the energy sector
a) Enhancing the capacity of current energy delivery infrastructure through rehabilitation
and/or refurbishment to ensure reliable and effective supply, and to ensure access by more
people.
[The Power Rehabilitation Project has been implemented since 1998 in line with this
strategy.]
b) Creating new energy delivery infrastructure through, for example, building new power
stations, transmission lines, etc. to cater to increased domestic demand and export.
[Three hydropower development projects are being planned and financial negotiation is
ongoing with private investors from China and Iran. International interconnection
projects extending to Tanzania by 300 kV with 700 km length, and to DRC are being
planned.]


-4-C-19-
C Power Sector

C-4 Proposed Project
From the results of this study, the following power sector projects are proposed for implementation:

At present, the power output from the three major hydropower plants occupies 98% of the total installed
capacity of Zambia, and these plants are now under rehabilitation and repowering works through the Power
Rehabilitation Project (PRP).
Completion of the works are scheduled for J une 2008. Some transmission and distribution line facilities are
being rehabilitated by the same project; however, many other existing transmission and distribution lines
still remain unrehabilitated.
Therefore, there is a possibility that even after completion of the PRP, the electricity generated cannot be
transmitted and/or distributed. To deliver 100% of the power generated from the three major hydropower
plants to the end consumers, it is crucial to implement the following rehabilitation projects, i.e. (1) to (5),
and conduct related maintenance training for rehabilitation and reinforcement of the existing transmission
and distribution lines.
On the other hand, it is presumed that the expansion of power generation facilities is mainly on hydropower
plants; however, it is also important to prepare a development road map considering power trade with
neighboring countries through SAPP, with efficient and effective implementation. Although ZESCO
developed a power system master plan study in 1993, it should be updated considering Zambias change in
circumstances since that time. Economic growth has been remarkable and SAPP has become active as they
introduced the Short-Term Energy Market in 2001. Moreover, in that study, hydropower potential was
reviewed based only on previous studies. For these reasons, the power development master plan as
explained in Item (6) below should be prepared as soon as possible so that this master plan would be the
development indicator.

(1) Rehabilitation and Reinforcement Works of Distribution Networks in Lusaka and Surrounding
Area
The population in Lusaka has increased significantly and urbanization is progressing. However, the
distribution facilities are deteriorating and their capacity is not sufficient for expansion of distribution lines
presently underway.
Effective electrification in the densely populated urban area will lead to the uplift of cultural level through
television and radio, and contribute to improved security in the downtown area, expansion of irrigation
through pumping of water to the surrounding agricultural land and development of small- and
medium-scale businesses. This project conforms to the National Policy to improve the electrification rate,
increase food production and encourage new industry, and the necessity for urgent implementation is
considered to be high.

(2) Rehabilitation and Reinforcement Works of Livingstone Distribution Network
Livingstone is located near Victoria Falls, one of the three largest cataracts in the world and an important
base for tourism with hotels and lodgings for visitors from the Zambia side. Power distribution to the city

-4-C-20-
Chapter 4 Sectoral Development Strategies

has been supported by two 10 MVA transformer units; however, one of the transformers recently broke
down. Therefore, the power supply in Livingstone has become severe with frequent rolling brownouts. The
single remaining transformer cannot stop operating to undergo maintenance since there is no spare.
Furthermore, most of the 11 kV distribution line is under the ground; thus, maintenance is difficult and
damage to the line is severe, resulting in frequent line failure. As reliable power supply is most important
for a tourist town, rehabilitation and restoration are urgently required.

(3) Rehabilitation and Reinforcement Works of Power Generation Facilities and Network in
Eastern Province
The Eastern Province is a fertile farm belt for irrigation agriculture if stable power supply can be assured.
In this respect, it is an important region in view of food security, as propagandized by the Zambian
government. However, the power facilities in the Eastern Province were built more than 40 years ago, and
blackouts occur quite often. Maintenance costs for the old facilities are soaring and there is also a lack of
spare parts. The small Lusiwasi Hydropower Station (12 MW), which is ZESCOs 4th biggest hydropower
station and connected to the National Grid, is also quite old as it dates back to 1970. It has no spare parts
either, and one of its four units is malfunctioning. To increase food production by supplying stable power
for irrigation facilities, it is extremely urgent to rehabilitate and upgrade the power plant and related
transmission/distribution network.

(4) Rehabilitation and Reinforcement Works for Copperbelt Distribution Facilities
Ndola and Kitwe, located in the Copperbelt, are the 2nd and 3rd largest cities after Lusaka, respectively.
There are many copper mines nearby, which is the basic industry in Zambia; therefore, these cities
developed a long time ago with the development of copper mining. The lifespan of the distribution network
in both cities has expired; therefore, rehabilitation is required. In addition, with the increase of population
and urbanization, the substation capacity is no longer sufficient. Therefore, rehabilitation and expansion of
substation facilities are also required. As the 330 kV trunk line supplying power to the copper mines in the
Copperbelt passes through both cities, installation of the SCADA system is recommended for the substation.
With the introduction of the system, strict monitoring and control from Lusaka would be easier, and would
improve the reliability of power supply.

(5) Rehabilitation and Expansion Works for ZESCO Training Center in Ndola
The ZESCO Training CenterZTCfor ZESCO employees opened in 1970 in Ndola, which is one of the
major cities in the Copperbelt.
ZTC provides training mainly on maintenance technology for transmission and distribution lines. The
training center, which was originally a farmhouse, is very old and has an adverse effect on the training
program. As part of PRP, an American consultant prepared detailed plans for repair of the training center,
improvement of the training program and renewal of the training facilities. Based on this, ZESCO decided
to implement the scheme in 2003; however, a lack of funds has stalled the project. ZESCO is under
pressure to disseminate the maintenance and operation technology of the new facilities introduced by PRP.

-4-C-21-
C Power Sector

On the other hand, ZESCO has its own rehabilitation plan for transmission/distribution lines. Therefore, the
training of technical staff has become an urgent task. The ZTC training facilities and program are
out-of-date now, and renewal of the facilities and program is required in addition to repair of the training
center building.

(6) Power Development Master Plan in Zambia
To increase the power supply to domestic consumers and the export of power to neighboring countries to
acquire foreign currency, the development of generation sources shall be steadily implemented. Zambia has
abundant water resources; therefore, the main development target is presumably hydropower. It is
recommended that the hydropower potential of the entire country be studied for the efficient and effective
development of water resources. Additionally, the power development master plan shall be formulated
based on the power demand forecast considering the expansion of the transmission line network in Zambia,
rural electrification and SAPP trends.