Neoen S.A.S, out of France, was selected as the preferred bidder under the Scaling-Up Solar Project in Zambia. According to media reports, Neoen and the government have completed negotiations on taxation, land provision, and equity financing.
It was also reported that the French firm has signed a power purchase agreement with Zambia’s Zesco Ltd.
Zambia’s Minister of Finance, Felix Mutati, speaking to reporters said, “This is a great development in our resolution of the power supply challenges.”
Mutati added: “The finalization of the PPA sets solid ground for reaching financial closure on the project that is now expected to be achieved by the end of April 2017.” Through the deal 100 MW should be added to the national grid by the end of the year.
Mutati told media that negotiations have been tough, but through joint determination to succeed and inject 100 MW into the main grid by the end of this year, they have come to a mutually beneficial agreement.