By Lucy Tandi – Friday 23 July 2021
HARARE (Mining Index) – CHINA’S biggest bank, the Industrial and Commercial Bank of China (ICBC) has withdrawn its interest to finance the construction of a US$3 billion thermal power project in Zimbabwe, campaigners said after meeting bank officials last month.
ICBC told environmentalists in a meeting that they would not go ahead with the 2.8GW Sengwa coal plant.
A coalition of environmentalists say China view financing the Sengwa Coal Project as a “bad plan due to environmental problems,” reported Bloomberg.
Zimbabwe’s Rio Energy Limited, a unit of RioZim had on the cards a plan to construct a massive thermal power plant next to Sengwa coal field.
Last year, ICBC gave a formal expression of interest in the project in which it negotiated with Sinosure, also known as the China Export and Credit Insurance Corp, to cover country risk insurance costs.
In recent years, Multilateral Development Banks like the World Bank (WB), African Development Bank (ADB), European Bank for Reconstruction and Development, European Investment Bank, and governments like the United Kingdom (UK), Netherlands and Germany have put in place policies towards halting coal projects financing.
There has been growing concerns over use of coal, with a significant number countries having voted for the abandonment of coal whose continued usage has been linked to effects of climate change which has resulted in loss of lives and devastated communities globally.
The latest development is despite the growing number of Chinese nationals flocking into Zimbabwe to venture into coal mining in Matebeleland province, with the recent Dinde incident which has seen Bei Fa Investments, a company owned by Chinese nationals moving in to pitch a tent at the heart of the community over its intention to explore for coal in the area in April this year.
In December 2018, three Chinese firms, Tutu Investments, Zimbabwe Zinghxon Coking Company (ZZCC) and South Mining established coke-processing and solar power plants in Hwange. ZZCC and South Mining have coking plants in Lukosi and Madumabisa, while Tutu Investment is reportedly linked to coke processor, Hwange Coal Gasification Company.
According to environmentalists, coal is a huge threat to public health. Coal pollution produces Sulphur dioxide which penetrates into human lungs and associated with bronchitis, asthma, and acid rain which results in crop failure and damage to the ecosystem; nitrogen oxides which cause harm to lungs, making people prone to chronic respiratory diseases; mercury which is toxic and damages the nervous, immune and digestive systems; soot (particulate matter) which is associated with cardiovascular conditions like heart attacks and premature deaths.
Other harmful pollutants produced by coal are lead and other toxic heavy metals, carbon monoxide, arsenic and volatile organic compounds.
‘Coal power plants are heavy consumers of water, a resource which Zimbabwe does not have in abundance. As a result of climate change, Zimbabwe faced its worst drought in 40 years during the 2018/19 agricultural season,’ said Melania Chiponda, an environmentalist.
Environmentalists across the globe are advocating for governments to switch their investments to clean energy such as solar and wind power.
‘Instead of investing in the Sengwa coal power plant, the Government of Zimbabwe should work divesting from coal and all new investors must invest in renewable energy systems.
Zimbabwe has huge solar potential which remains untapped, with the Northern and Western regions of Zimbabwe having the highest irradiation potential, but only 1% of the country’s solar potential has been harnessed,’ said Chiponda. ENDS//
