Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
The Luapula Hydropower Project involves the development of hydropower resources along the Luapula River, which forms the border between Zambia and the Democratic Republic of Congo (DRC). The project consists of a series of cascading hydropower plants designed to harness the significant hydroelectric potential of the river while minimizing environmental impacts through a focus on run-of-river configurations. This binational initiative will increase power generation capacity in both countries, enhance regional electricity security, and support sustainable economic development through renewable energy production.
Objectives
The project aims to: (i) develop the substantial hydropower potential of the Luapula River through environmentally and socially sustainable approaches; (ii) increase installed generation capacity in both Zambia and DRC to address growing electricity demand; (iii) enhance energy security through diversification of generation sources; (iv) promote cross-border energy trade and regional integration; (v) support mining and industrial development in both countries through reliable power supply; (vi) create employment opportunities during construction and operation; (vii) contribute to climate change mitigation through low-carbon electricity generation; and (viii) strengthen bilateral cooperation between Zambia and DRC in shared water resource management.
Strategic Importance
The Luapula Hydropower Project represents a strategic binational initiative that addresses critical energy security needs while strengthening regional integration. Located in a region with significant mining operations and growing industrial activity, the project will provide much-needed reliable electricity to support economic development in both Zambia and DRC. The cascading hydropower plants will harness renewable energy resources, contributing to climate change mitigation goals while diversifying the generation mix in both countries. From a regional perspective, the project enhances cross-border electricity trade possibilities within the Southern African Power Pool (SAPP) framework, supporting broader regional integration objectives. The collaborative development approach demonstrates the benefits of cooperative management of shared water resources, potentially serving as a model for other transboundary infrastructure projects in Africa.
Technical Specifications
Technology & Design
The project will employ modern hydropower technology appropriate for the specific conditions of the Luapula River. The cascade will consist of multiple plants utilizing a combination of run-of-river configurations and limited storage reservoirs to optimize power generation while minimizing environmental and social impacts. Technical innovations include variable-speed turbines to enhance efficiency across different flow conditions, advanced control and automation systems, and environmental design features such as fish passage facilities and ecological flow management capabilities.
Capacity & Size
The total installed capacity across the cascade will be approximately 800-1,000 MW, comprising 5-7 hydropower plants ranging from 80 MW to 250 MW each. Annual energy production is estimated at 4,800-6,000 GWh, with seasonal variations managed through the cascade configuration. The project will include associated transmission infrastructure (likely 330 kV and 220 kV) to connect to the national grids of both countries and regional interconnections.
Technical Details
Technical specifications include: (i) Multiple hydropower plants in cascade configuration with combined capacity of 800-1,000 MW; (ii) Mix of run-of-river and limited storage designs to minimize environmental impacts while optimizing generation; (iii) Francis and/or Kaplan turbines depending on site-specific conditions; (iv) Design optimization for seasonal flow variations with installed capacity factors of 55-65%; (v) Advanced control and automation systems with remote monitoring capabilities; (vi) Associated transmission infrastructure including step-up substations and high-voltage lines; (vii) Environmental features including ecological flow releases, fish passage facilities, and water quality monitoring; and (viii) Climate resilience measures including spillway capacity designed for increased flood events.
Development, Implementation & Financial Details
Development Timeline
Project development timeline includes: (i) Pre-feasibility studies (2018-2020); (ii) Detailed feasibility studies including technical, economic, financial, and environmental/social assessments (2020-2023); (iii) Project structuring and financing arrangements (2023-2025); (iv) Detailed design and contractor procurement (2025-2027); (v) Construction of initial phases (2027-2032); and (vi) Construction of subsequent phases (2030-2035).
Latest Implementation Updates
UPDATED2025-03-17: SAPP launched tenders for bankable feasibility & ESIA studies – https://www.hydropower-dams.com/news/southern-african-power-pool-sapp-tenders-studies-for-the-luapula-hydropower-project/
2025-03-17 — SAPP launches tenders for bankable feasibility, ESIA and RAP for the Luapula cascade, moving the scheme toward investment decision and financing. [https://www.hydropower-dams.com/news/southern-african-power-pool-sapp-tenders-studies-for-the-luapula-hydropower-project/]
Financing Structure
The project is expected to utilize a blended financing approach combining: (i) concessional loans from multilateral development banks (AfDB, World Bank) and bilateral development finance institutions; (ii) commercial financing potentially supported by partial risk guarantees; (iii) equity contributions from the governments of Zambia and DRC and/or their respective power utilities; and (iv) possible private sector participation through carefully structured Public-Private Partnership (PPP) arrangements for specific components. Climate finance instruments may be leveraged for appropriate project elements.
Capital Structure
The anticipated capital structure includes approximately 70-75% debt financing from a combination of concessional and commercial sources, with 25-30% equity contributed by the governments and/or utilities of Zambia and DRC on a 50-50 basis. The specific arrangements will be finalized during the project structuring phase following completion of detailed feasibility studies.
Project Timeline
Start Date
June 2018
Expected Completion
December 2035
Development Timeline
Project development timeline includes: (i) Pre-feasibility studies (2018-2020); (ii) Detailed feasibility studies including technical, economic, financial, and environmental/social assessments (2020-2023); (iii) Project structuring and financing arrangements (2023-2025); (iv) Detailed design and contractor procurement (2025-2027); (v) Construction of initial phases (2027-2032); and (vi) Construction of subsequent phases (2030-2035).
Project Status History
Status 2020
Feasibility
Status 2022
Feasibility
Status 2024
Feasibility
Additional Project Details
Preparation Funding Gap
USD 20.00M
Construction Timeline
The construction timeline will be phased to optimize resource utilization and manage financing requirements. Initial phase construction is expected to span 5-6 years (2027-2032) for the first hydropower plants, with subsequent phases overlapping and extending to 2035. Each plant will require approximately 4-5 years from mobilization to commissioning, with civil works representing the critical path.
Legal & Financial Advisors
Technical studies supported by consultants including Lahmeyer International and AECOM. Legal advisory services by DLA Piper. Financial advisory services by Fieldstone Africa.
Market Analysis
Market Analysis
Electricity demand in both Zambia and DRC is growing at 5-7% annually, driven by mining expansion, industrial development, and increasing electrification rates. Both countries have experienced supply deficits in recent years, with resulting load shedding impacting economic productivity. The Copperbelt region in both countries hosts significant mining operations with substantial electricity requirements and potential for expansion contingent on reliable power supply. Regional market analysis through the Southern African Power Pool (SAPP) indicates strong demand for additional generation capacity to address regional deficits.
Market Demand
The project will develop multiple hydropower plants along the Luapula River with combined installed capacity of approximately 800-1,000 MW, phased over time. Annual energy production is estimated at 4,800-6,000 GWh depending on hydrological conditions. The electricity will serve domestic markets in both Zambia and DRC (approximately 80% of output) with potential for regional exports through the Southern African Power Pool (SAPP) interconnections (approximately 20% of output).
Key Stakeholders
Project Sponsor
Governments of Zambia and DRC, with implementation by ZESCO Limited (Zambia) and Société Nationale d'Électricité (SNEL, DRC)
Key Parties
Ministry of Energy (Zambia), Ministry of Energy and Hydraulic Resources (DRC), ZESCO Limited (Zambia), Société Nationale d'Électricité (SNEL, DRC), Luapula River Authority (binational entity being established), Southern African Power Pool (SAPP)
Investors
African Development Bank, World Bank, European Investment Bank, China Exim Bank, Development Bank of Southern Africa (DBSA), Government of Zambia, Government of DRC
Contractors & Operators
To be determined through international competitive bidding following project structuring and financing arrangements
Risk Assessment
General Risk Assessment
Key risks identified include: (i) Hydrological uncertainties including climate change impacts on the Luapula River basin; (ii) Technical challenges in developing multiple hydropower sites in cascade configuration; (iii) Environmental and social impacts requiring careful management; (iv) Coordination complexities between two countries with different regulatory frameworks, financial capacities, and political systems; (v) Financing challenges given the large investment requirements; and (vi) Security considerations in certain areas. Risk mitigation strategies are being developed for each category as part of the feasibility studies.
Regulatory Risks
Regulatory risks include: (i) Need for harmonized regulatory frameworks between Zambia and DRC for shared hydropower development; (ii) Requirements for water resource management agreements; (iii) Potential changes in energy sector policies in either country; (iv) Environmental compliance across transboundary contexts; and (v) Challenges in establishing appropriate bilateral institutional arrangements for project implementation and operation. A key mitigation measure is the establishment of the Luapula River Authority as a dedicated binational entity to oversee development.
Impact Assessment
Environmental Impact
Environmental and social impact assessments are being conducted for each potential hydropower site, with preliminary findings indicating manageable impacts given the focus on run-of-river configurations with limited reservoir footprints. Key environmental considerations include: (i) Aquatic ecosystem impacts including fish migration; (ii) Riparian habitat modification; (iii) Water quality considerations; (iv) Potential cumulative impacts of multiple plants; and (v) Induced development effects. Comprehensive mitigation and management plans will be developed based on detailed assessments.
Social Impact
Social impacts primarily relate to land acquisition and resettlement requirements, which are being minimized through project optimization. The project is expected to create approximately 4,000-5,000 jobs during peak construction periods, with 300-400 permanent positions during operation. Benefit-sharing mechanisms will include rural electrification along the corridor, community development programs, and training initiatives to enhance local employment opportunities. Particular attention will be given to indigenous peoples and vulnerable groups where present in the project area.
Investment Opportunities
Private Sector Opportunities
The project presents significant opportunities for private sector participation, including: (i) potential equity investment in specific project components through PPP structures; (ii) EPC contracting for dam construction and power plant infrastructure; (iii) supply of electromechanical equipment; (iv) operations and maintenance services; (v) transmission infrastructure development; and (vi) provision of specialized technical and consulting services. The strategy for private sector engagement will be refined during the project structuring phase.
Next Steps & Agreements
Next Steps
Key next steps include: (i) completion of detailed feasibility studies including optimization of project configuration; (ii) finalization of Environmental and Social Impact Assessment (ESIA) studies; (iii) establishment of bilateral implementation frameworks including the Luapula River Authority; (iv) development of commercial and financing structures; (v) preparation of tender documents for detailed design and construction; and (vi) engagement with potential financing partners.
Offtake Agreements
The electricity offtake arrangements will be structured through long-term Power Purchase Agreements (PPAs) with the national utilities of Zambia (ZESCO) and DRC (SNEL) on a 50-50 basis. These agreements will include provisions for firm capacity and energy commitments, tariff structures including potential escalation mechanisms, dispatch protocols, and force majeure provisions. Additional agreements may be established with major industrial consumers, particularly mining operations in both countries, and for regional exports through the Southern African Power Pool (SAPP).
Contact Information
Eng. Victor Mapani, Managing Director, ZESCO Limited, Email: info@zesco.co.zm; Eng. Jean-Bosco Kayombo Kayan, Managing Director, SNEL, Email: secretariat.dg@snel.cd; Joint Technical Committee on the Luapula River Basin, Email: luapula.river@gmail.com
