Breaking News

Zesa Holdings clears its debts to suppliers in the region

by Staff Reporter
19 February 2013 | 4355 Views
Electricity load-shedding is set to ease in most parts of the country after Zesa Holdings cleared its debts to suppliers in the region, although some challenges still remain in supplying enough power, an official has said.

Giving evidence before the House of Assembly Portfolio Committee on State Enterprises and Parastatals yesterday, Zesa chief executive officer Engineer Josh Chifamba said the financial resources directed to debt alleviation would now be channelled to production.

"We owed Hydro Caborra Basa  $100 million and we have managed to clear that and we are trying to ensure that we remain current," he said. "We do not owe any of our suppliers at the moment and it explains the improved supplies we have recently had."

Eng Chifamba said the $2 million they owed Snell from DRC had been settled in exchange for equipment produced by their subsidiary Zesa Enterprises.

Zimbabwe has relied on electricity imports from regional utilities to supplement local supplies that are failing to meet demand.

The country requires at least 2 200MW, but is producing only 1 200MW resulting in the necessity for imports and load shedding.

Eng Chifamba said the power utility was owed $740 million by defaulting customers with local authorities and companies like Sable Chemicals and Zimasco contributing a large chunk of the debt.

On new generation projects they are embarking on, Eng Chifamba said the expansion of Hwange and Kariba power stations was on course.

He said they signed a $390 million contract with Sino-Hydro for the extension of Kariba Power Station that will result in an additional 300MW.

Eng Chifamba said Sino-Hydro would contribute 85 percent of the cost, while they were expected to contribute the remaining 15 percent.

"We are hoping that within the first half of the year we will get financial resources so that the project can begin," he said.

"On Hwange Power Station, the technical adjudication is currently happening and we expect that by March 16, we will get to the State Procurement Board with recommendations of approved companies. That project will add an additional 600 MW."

Eng Chifamba said Zimbabwe had started paying off the $70,8 million debt owed to the Zambian government emanating from the construction of Kariba Power Station during the colonial era.

This, he said, paved way for the commencement of the implementation of the Batoka Power Project.

Zimbabwe has paid $20 million to Zambia, while another $20 million is expected to be paid by the end of next month.

The Batoka Power Project has a potential to generate 1 600 MW for both Zimbabwe and Zambia and is expected to cost $4 billion.

Zesa embarked on load shedding in the 1990s, with the situation worsening at the turn of the millennium as the power utility failed to meet demand, with its debt to regional suppliers soaring.




The load shedding affected big industries that ended up losing millions of dollars in lost hours of production, while some companies invested a lot in buying generators.

Residents in various cities have been critical of Zesa for cutting off supplies yet maintaining the high bills though customers sometimes go for days without electricity.


Zesa Electricity load-shedding

Source: TC

Is Itai Dzamara eyeing the US Green Card?

Yes
20.36%
No
73.93%
Not sure
5.71%
560

Comments

News Updates

Email:

Latest News

Mnangagwa to hand over keys of the Bosso bus - VICE-PRESIDENT Emmerson...

by Fungai Muderere | 30 May 2015 | 215 Views

Stateless Shona still trapped in Kenya's shadows - IN A village on the...

by Thomson Reuters Foundation | 30 May 2015 | 243 Views

Hit and run along Fort and 6th - 10:51am (Sat 30th May)

by Concerned Citizen | 30 May 2015 | 3208 Views

'Zanu-PF expulsions not kangaroo court decisions'

by Tichaona Zindoga | 30 May 2015 | 1571 Views

Woman refuses to be divorced - A BULAWAYO woman yesterday pleaded with...

by Mashudu Netsianda | 30 May 2015 | 2380 Views

Freezim Congress to win Kuwadzana by-election - Freezim congress repre...

by Kuwadzana Resident | 30 May 2015 | 1156 Views

Police warn against by-elections violence - POLICE have warned would-b...

by Thubelihle Mabhena | 30 May 2015 | 749 Views

SDA world leader comes to Bulawayo

by Prosper Ndlovu | 30 May 2015 | 1104 Views

Khaya Moyo dismisses factionalism conspiracy theories - ZANU-PF has ch...

by Staff reporter | 30 May 2015 | 690 Views

Married man demands used condom from ex - A MARRIED Dangamvura man bas...

by Staff reporter | 30 May 2015 | 1807 Views

Teenage witch caught - A CREEPY looking suspected teenage witch was on...

by Staff reporter | 30 May 2015 | 1665 Views

Avenging spirit troubles driver's family over 90s accident - A CHIMANI...

by Tendai Gukutikwa | 30 May 2015 | 1324 Views

Esrom Nyandoro hangs boots? - After a season in which they finished se...

by Tiyani wa ka Mabasa - KickOff | 30 May 2015 | 2113 Views

'I just want sexual favours' - A CHIKANGA woman has dragged her long-...

by Tendai Gukutikwa | 30 May 2015 | 2128 Views

Hands off Matabeleland - Mthwakazi demo invite - MATABELELAND PEOPLE I...

by Matebeleland People In Diaspora | 30 May 2015 | 792 Views

Tsholotsho, Caps tie moved from White City to B/F - TOMORROW'S Castle ...

by Sikhumbuzo Moyo | 30 May 2015 | 706 Views

Mugabe, John Kerry witnesses Buhari's inauguration

by Nduduzo Tshuma | 30 May 2015 | 960 Views

Is Zimbabwe's most wanted 'dissident' Gwesela dead or alive? - The sum...

by Sydney Kawadza | 30 May 2015 | 2735 Views

Police summon Mangoma, 'love rival' - MDC Renewal Team treasurer-gener...

by Staff reporter | 30 May 2015 | 843 Views

Border jumpers kill charging crocodile

by Staff Reporter | 30 May 2015 | 1946 Views

Young Warriors stranded in Harare - The Young Warriors were still stra...

by Staff reporter | 30 May 2015 | 934 Views

Sepp Blatter re-elected FIFA president - Zurich - Sepp Blatter won th...

by AFP - Reuters | 29 May 2015 | 2819 Views

Unsung hero of Zimbabwe's 'dissident era' speaks out - BULAWAYO - A v...

by Thabo Kunene | 29 May 2015 | 6146 Views

ORAP to host Chevrolet tornament - ORAP Zenzele and Autoworld Bulaway...

by Stephen Jakes | 29 May 2015 | 1453 Views

Dog breeding now source of income in Zimbabwe - Dogs have always been ...

by Erol Ersoy - Anadolu Agency | 29 May 2015 | 3250 Views

Entertainment

ZiFM caught in royalties storm - THE Zimbabwe Music Rights Associati...

by Thobekile Zhou | 29 May 2015 | 1817 Views

Bev takes raunchy dance to UK - RAUNCHY pole dancer - Beverly Sibanda...

by Thobekile Zhou | 29 May 2015 | 2285 Views

Ex-Generations actress was once involved in an adulterous affair with ...

by Staff reporter | 26 May 2015 | 8347 Views

ZTV blackout looms - ZIMBABWE will likely miss the June 17 Internation...

by Staff reporter | 25 May 2015 | 5402 Views

Bulawayo snubs Big Nuz - AFTER gathering strength to make the long tr...

by Kusile Madlela | 25 May 2015 | 5120 Views

Winky D face 10 year UK ban for fraud

by Staff Reporter | 24 May 2015 | 7386 Views
iBlog

Obviously, Windows Xp Has Nothing More To Offer

With no support from the manufacturer, windows xp no longer receives antivirus updates, which provoked an increase in the number of attacks on xp users. according to avast company, windows xp systems are attacked 6 times more often than the devices r... Read More
Sergey 12 June 2014 ago

Four In 10 Americans Face Regular Online Fraud Attacks

Microsoft offers four primary tips to help protect users from identity theft:• be selfish and defensive with personal information by not sharing sensitive details in emails, and instant and text messages• create, use and keep secret so-called “... Read More
SecNews 24 October 2014 ago