Financial close is reached on the 100 MW Chisamba Solar PV Project. The project is being developed by Kariba North Bank Extension Power Corporation (KNBEPC), a wholly owned subsidiary of ZESCO Limited.

The $71.5 million debt package was arranged by Stanbic Bank Zambia, a member of the Standard Bank Group. The project is underpinned by a 13-year Power Purchase Agreement (PPA) between KNBEPC and GreenCo Power Services. Under a separate Power Supply Agreement (PSA), GreenCo will supply the energy to First Quantum Minerals (FQM), Zambia’s largest mining investor.

The structure avoids the use of sovereign guarantees or public debt. Stanbic Bank’s financing is being provided directly to KNBEPC, with no recourse to ZESCO. ZESCO retains transmission and system operations roles under Use-of-System agreements with GreenCo, benefiting from increased transmission revenues without taking on new liabilities.

The Chisamba plant is connected to Zambia’s national transmission system. While the energy generated is contracted to FQM, the transaction displaces existing supply, freeing up ZESCO capacity for distribution to other domestic consumers. The financing meets local and international environmental and social standards.

Power China, the EPC contractor, began construction ahead of financial close. Commercial operations are expected by June 2025. The solar generation from KNBEPC will be blended by GreenCo with additional power from the Southern African Power Pool (SAPP) to deliver a consistent supply to FQM.

This is the second major transaction involving ZESCO, GreenCo, Stanbic, and FQM within a six-month period. It is seen as a demonstration of how commercially structured offtake models can deliver large-scale infrastructure without sovereign risk.

KNBEPC will own and operate the project, delivering clean energy to the grid. At the end of the PPA term, after debt repayment, all energy from the plant will be delivered to ZESCO.

Justin Loongo, Managing Director of ZESCO, said: “This milestone reflects the value of strong partnerships. ZESCO is committed to supporting projects that deliver new capacity and stability to the national grid. The power that FQM will now receive from this new solar plant will free up an equivalent volume of ZESCO’s existing supply, which we will redirect to serve domestic customers. In the midst of the current power challenges, this project is a clear example of how innovative collaboration is helping to relieve pressure on the grid and bring tangible benefits to the Zambian people.”

Eng. Boyd Kanchela, CEO of KNBEPC, said: “Reaching financial close on the largest solar project in Zambia’s history is a proud moment for KNBEPC and the ZESCO Group. It shows what can be achieved when strong public institutions work together to mobilise commercial capital. This project proves that Zambian developers can lead from the front in delivering clean, reliable power at scale.”

Wezi Gondwe, Managing Director of GreenCo Power Services Zambia, said: “We are proud that GreenCo’s offtake structure enabled financial close on Zambia’s largest solar project. It is a testament to what is possible when the right commercial design meets serious partners committed to energy transformation. This is not private power bypassing the system—it is new power strengthening it.”

Helen Lubamba, Executive Director for Corporate and Investment Banking at Stanbic Bank Zambia, said: “This transaction marks our largest renewable project financing in Zambia to date. It exemplifies our dedication to backing sustainable infrastructure and climate-smart development. With KNBE being a subsidiary of ZESCO, this transaction further supports ZESCO’s commitment to diversifying its energy generation sources. Stanbic Bank Zambia are proud to be at the forefront of driving Zambia’s goal of attaining energy resilience critical for the nation's growth.”

Anthony Mukutuma, Director at First Quantum Minerals Zambia, said: “First Quantum Minerals’ participation in this deal demonstrates the company’s commitment to the growth of its operations and the mining industry in Zambia. Investment in energy and other infrastructure projects is critical for sustained growth and supply of critical transition minerals.”

Website	https://first-quantum.com/
Domicile	Zambia
Countries Active	Zambia
Total MW	112 MW
Organization Type	Off-taker

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