(Bloomberg) -- Zambia approved the construction of a third coal-fired power plant as it battles a power crisis caused by a record drought, which has stricken its hydro-electricity generation.
The 300-megawatt thermal power project was approved by the Zambia Environmental Management Agency last month, the regulator said in a statement on Wednesday.
Located about 330 kilometers (207 miles) south of Lusaka, the capital, the Mulungwa Power Generation Ltd. project will be a joint venture between Africa Power Coal and China’s Jiangsu Etern Company Ltd.
Zambia is fighting the effects of an El Niño-induced drought that has drastically reduced hydro-electricity generation, which supplies 85% of the country’s power, causing daily blackouts lasting 21 hours or more.
In July, Zambia approved the construction of only the country’s second coal-fired power plant. In August, Mulungwa Power separately said it planned to build its plant.
Zambia is also importing electricity from South Africa’s Eskom Holdings SOC Ltd. and neighboring Mozambique to cushion the power deficit.
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