Breaking News

Zesa Holdings clears its debts to suppliers in the region

by Staff Reporter
19 February 2013 | 4044 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

Could there be war if Grace Mugabe becomes President?

Yes
70%
No
11%
Who cares?
19%
100

Comments

Latest Classifieds (Click Here For More)

News Updates

Email:

Latest News

Mother of six shocked to death after getting BCC bill

by Staff Reporter | 20 October 2014 | 118 Views

7 years behind bars for reckless kombi driver

by Staff Reporter | 20 October 2014 | 159 Views

5 highway patrol cops in soup - Five National Highway Patrol cops have...

by Staff reporter | 20 October 2014 | 744 Views

Man in trouble for selling crocodile eggs

by Staff reporter | 20 October 2014 | 666 Views

Grace Mugabe lashes at Ray Kaukonde - Video - Robert Mugabe's wife Gra...

by Staff reporter | 20 October 2014 | 1409 Views

How many insults are the people of Matabeleland going to stomach? - IT...

by Nomazulu Thata | 20 October 2014 | 1182 Views

'Help me find my father' - WhatsApp update

by Concerned Citizen | 20 October 2014 | 1377 Views

Crisis of expectation in the MDC formations - The current goings on in...

by Stewart Murewa | 20 October 2014 | 1116 Views

Death threats against Grace Mugabe mount - Report

by Itai Mushekwe/ Mary-Kate Kahari | 20 October 2014 | 5758 Views

Politburo gags Gumbo - As faction fighting intensifies, the Zanu-PF se...

by Staff reporter | 20 October 2014 | 2337 Views

Welcome to abject poverty dumped minister Dzikamai Mavhaire! - The fa...

by Wilbert Mukori | 20 October 2014 | 2749 Views

Grace Mugabe to deputise hubby before taking over next year - Grace Mu...

by Staff reporter | 20 October 2014 | 2832 Views

Kingdom bank crisis continues as people spend nights for $50

by Business reporter | 20 October 2014 | 1017 Views

Pastor ordered to pay $80 maintenance

by Staff Reporter | 20 October 2014 | 1493 Views

Zanu-PF MP accused of grabbing conservancy - Zanu-PF Kariba MP Isaac M...

by Staff reporter | 20 October 2014 | 687 Views

Mugabe backs Grace over Mujuru attacks

by Staff reporter | 20 October 2014 | 4698 Views

City man offers $10 for upkeep of 4 children

by Court reporter | 20 October 2014 | 881 Views

Ezra 'Tshisa' Sibanda eyeing Bosso post?

by Staff reporter | 20 October 2014 | 2122 Views

Jostling for posts at Bosso begins - JOSTLING for positions at Bulaway...

by Sikhumbuzo Moyo | 20 October 2014 | 989 Views

Tsvangirai divides supporters

by whatsapp reporter | 20 October 2014 | 867 Views

'Tribalism at the heart of Tsvangirai party's splits,' says Banda - TH...

by Nduduzo Tshuma | 20 October 2014 | 1599 Views

Plumtree High struggling to lure pupils, enrolment tanks - PLUMTREE Bo...

by Staff Reporter | 20 October 2014 | 1394 Views

'All but one Zanu-PF posts up for grabs' - ALL posts in Zanu-PF, excep...

by Staff reporter | 20 October 2014 | 1015 Views

MDC-T's Lovemore Moyo battling for his life after horrific accident

by Staff reporter | 20 October 2014 | 2873 Views

Grace Mugabe to face Mujuru for VP?

by Staff reporter | 20 October 2014 | 2310 Views

MDC-T top brass clash over Job Sikhala - Still recovering from its sec...

by Staff reporter | 20 October 2014 | 1264 Views

'Mugabe is going nowhere,' says Kasukuwere - Zanu-PF Politburo member...

by George Maponga | 20 October 2014 | 1396 Views

Jabulani Sibanda accused of faking allegiance to Mugabe

by Staff reporter | 20 October 2014 | 1722 Views

Woman steals $78 groceries to save marriage

by Staff reporter | 20 October 2014 | 1310 Views

Entertainment

Grace Mugabe's political comedy takes ZTV hostage - For the past two w...

by Staff reporter | 20 October 2014 | 522 Views

Oliver Mtukudzi to deliver lecture at Musica 2014 - Zimbabwe's interna...

by Staff reporter | 19 October 2014 | 792 Views

Gezha maoko - Ladybee (Official Video)

by Staff Reporter | 19 October 2014 | 1256 Views

Matebeleland Music & Arts Festival - Sivala umnyaka ngengoma lapho sit...

by Staff Reporter | 17 October 2014 | 1315 Views

Obediah Matulana releases Christmas DVD - Bulawayo-based musician Obed...

by Staff reporter | 16 October 2014 | 1530 Views

Grace Mugabe honoured in song - Dancehall outfit Final Warning has rel...

by Tawanda Marwizi | 15 October 2014 | 1964 Views

US firm makes money off Zimbabwe concept - United States transport sh...

by Staff reporter | 14 October 2014 | 2553 Views

Zim's JJ faces BBA eviction - ZIMBABWEAN Big Brother Hotshots housemat...

by Showbiz reporter | 14 October 2014 | 2693 Views
iBlog

The Nsa Gets An Ok For Telephony Metadata Collection Yet Again

As much as we’d like to forget about the national security agency (nsa) and its mass surveillance program, it seems that there is no distracting ourselves from this unnerving reality.missing from the news for quite some time now, the issue has resu... Read More
SecNews 09 July 2014 ago

Yet Another Wave Of Digital Destruction Is Coming

Malware fever keeps on raging, taking sophisticated forms to wreak havoc around the worldwide web. even if your system is guarded thoroughly, you are still skating on thin ice, so you should better keep your eyes open and think twice before you make ... Read More
SecNews 02 March 2014 ago