Cabinet okays power deal

SAMANTHA MADE

The Cabinet has approved a Public-Private Partnership (PPP) between the Zimbabwe Power Company (ZPC) and Jindal (Private) Limited to rehabilitate, operate, and eventually transfer Hwange Power Station Units 1 to 6 and auxiliaries, marking a decisive step toward resolving Zimbabwe’s chronic electricity shortages.

Information, Publicity and Broadcasting Services Minister Jenfan Muswere confirmed the approval this week:
“Cabinet considered and approved the Public-Private Partnership Project between the Zimbabwe Power Company and Jindal (Private) Limited for the Rehabilitation, Operation and Transfer of Hwange Power Station Units 1 to 6 and Auxiliaries.”

Hwange Power Station, Zimbabwe’s largest coal-fired facility, has long been a backbone of the nation’s energy supply. Yet, decades of ageing infrastructure and chronic maintenance challenges have left its units operating well below capacity, triggering frequent breakdowns, persistent load-shedding, and disruptions to industrial and household electricity reliability.

Muswere explained that the project will operate under a Rehabilitate, Operate, and Transfer (ROT) model, allowing the private partner to restore and operate the plant before ownership reverts to the state. The ROT model has been successfully applied in several international energy projects, balancing private sector efficiency with national oversight.

“Reviving Hwange Power Station’s first six units will benefit Zimbabwe by significantly increasing the national electricity supply, thereby reducing load shedding and ensuring reliable power for industries and households. Reliable power will enable sustained production, boost industrial output, enhance economic activity, and create jobs,” Muswere said.

Energy and Power Development Minister July Moyo provided further detail on the financial structure, confirming that Jindal will inject US$450 million into the project. A joint government-company committee will monitor the funds to ensure proper banking channels are used and that the project adheres to agreed timelines and standards.

“Further negotiation refinements are ongoing to ensure that the partnership project serves the national interest,” Muswere added, underscoring the government’s commitment to a deal that benefits both Zimbabwe and its investors.

The Hwange rehabilitation is expected to have broad economic effects. Industries—particularly mining, manufacturing, and agro-processing—have been hardest hit by inconsistent power, with many operating below capacity or relying on costly diesel generators. Reliable electricity from Hwange is projected to reduce operational costs, improve productivity, and boost investor confidence.

Zimbabwe has increasingly turned to PPPs to attract private investment into critical infrastructure. The ROT approach, in particular, enables private partners to contribute technical expertise and capital, while the government retains ultimate ownership and oversight. Analysts argue that such models are essential in sectors like energy, which have suffered decades of underfunding and inefficiency.

Jindal, an international energy firm, brings both technical expertise and financial strength to Hwange. Leveraging its experience in coal-fired power plants, Jindal is expected to accelerate rehabilitation while introducing operational efficiencies to ensure sustainable performance.

Observers also highlight the importance of strong governance in PPPs. Zimbabwe’s energy sector has long faced challenges, including an ageing fleet of power stations, underinvestment in grid infrastructure, and reliance on costly electricity imports during peak demand. Hwange, originally rated at 920 MW, has consistently operated far below this capacity due to mechanical failures and limited maintenance funding.

Beyond domestic impact, the Hwange revival carries regional implications. Zimbabwe has historically exported electricity to neighbouring countries through the Southern African Power Pool, earning vital foreign exchange. Increased capacity could enable Zimbabwe to resume exports, strengthen regional energy cooperation, and improve the balance of payments.

Experts suggest that a successful Hwange PPP could serve as a blueprint for other energy projects, including solar, hydro, and thermal power investments. Demonstrating that private capital can effectively rehabilitate and operate strategic infrastructure may attract additional investment in sectors critical to national development.