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Zambia - Transaction Advisory Services for the Kafue Gorge Lower Hydro Power Project

CPCS is serving as Lead Transaction Advisor to Zambia's national electric utility (ZESCO) for the greenfield development of the 750 MW Kafue Gorge Lower Hydro Power Project (KGLHPP) on a project finance basis.

The total estimated cost of developing the KGLHPP is in excess of USD 2 billion, with a significant proportion of the debt financing being sourced through Chinese export credits. The remainder of the required funding is expected to be sourced through equity capital provided by ZESCO and subordinated debt raised on the SPV's balance sheet.

With construction of the KGLHPP having started in advance of achieving financial close, a core component of this mandate has involved the arranging of stop-gap financing to support the implementation of the EPC contract. At the time of financial close, KGL will be supported by at least four different debt facilities.

The KGLHPP is one of Zambia's largest investments, and once operational, is expected to augment the country's installed capacity by nearly 30%.