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Zambia: A new power station to boost the energy sector

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CPCS is serving as lead transaction advisory consultant to the US$2 billion Kafue Gorge Lower power station in Zambia — the country’s largest investment in the power sector in 40 years

The challenge

The past decade saw a rapid increase in the demand for power in Zambia. At this rate, it will easily exceed the country’s total installed capacity of around 2,700 MW.

Building a hydropower facility at the Kafue Gorge Lower will add 750MW to the total. This could be the solution to power deficits in surrounding regions.  

As the station is being built, our objective is to its achieve financial close as quickly as possible.

“Construction began early as Zambia’s government wanted to have the power plant operational by 2020,” says Miho Ihara, Vice President for East & Southern Africa at CPCS.


  • Develop the project’s contractual and financial structure
  • Support the client’s stakeholder relations to get required licences, permits and approvals
  • Develop related contracts and negotiate with counterparties on the client’s behalf
  • Develop and implement strategies to secure financing ahead of financial close
  • Market the project to financiers and negotiate with them on the client’s behalf until financial close


  • Design and implement a complex transaction
  • Engage with numerous stakeholders to drive buy-in
  • Build capacity and transfer knowledge within the country


Zambia’s historically ambitious hydropower project will likely increase the country’s installed capacity by nearly 30 per cent. By meeting some of Zambia’s energy demands, the project will also support economic growth and make the country a net exporter of electricity.