Breaking News

Zesa Holdings clears its debts to suppliers in the region

by Staff Reporter
19 February 2013 | 4065 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
74.2%
No
9.24%
Who cares?
16.56%
628

Comments

Latest Classifieds (Click Here For More)

News Updates

Email:

Latest News

Mugabe wants to quit says Zambia's new president

by Staff Reporter | 31 October 2014 | 4936 Views

Pastor caught engaging bonking policeman's wife in a car - Married Met...

by Staff reporter | 31 October 2014 | 4279 Views

Reasons why Grace Mugabe attacked Joice Mujuru - Ongoing attempts to e...

by Staff reporter | 31 October 2014 | 4448 Views

Mujuru camp hits back - The Zanu-PF Secretary for Information and Publ...

by Staff reporter | 31 October 2014 | 4445 Views

Thomas Mapfumo not dead - The social media was abuzz on Friday with ...

by Staff Reporter | 31 October 2014 | 3254 Views

Jabulani Sibanda's bedroom coup jab at Mugabe haunts him - The founder...

by Staff reporter | 31 October 2014 | 1912 Views

Sibanda bedroom coup jab at Mugabe was more potent than Ali's left hoo...

by Wilbert Mukori | 31 October 2014 | 4394 Views

Rude awakening for judge aspirant - A former High Court Registrar and ...

by Staff reporter | 31 October 2014 | 2716 Views

Mugabe and friends need to know we will change history narrative - Th...

by Shingai Mugochi | 31 October 2014 | 3161 Views

Gideon Gono to takeover re-branded Zanu-PF?

by Nancy Mabaya | 31 October 2014 | 4643 Views

Inside Mugabe's sealed succession envelope: Fear, self assassinations ...

by Dinizulu Mbikokayise Macaphulana | 31 October 2014 | 4436 Views

When even the gullible can no longer be fooled - The west has once mor...

by Tafara Shumba | 31 October 2014 | 1144 Views

Tsvangirai's wife refuses to be called Dr Macheka - Morgan Tsvangirai'...

by Staff reporter | 31 October 2014 | 7156 Views

Image battered Tsvangirai faces the daunting task of reuniting the par...

by Prince Tongogara | 31 October 2014 | 1962 Views

MDC-T Congress - Live updates - Below are live updates of the Morgan ...

by Staff reporter | 31 October 2014 | 4037 Views

Senzo Meyiwa suspect arrested at Beitbridge border post - A suspect in...

by City Press | 31 October 2014 | 5616 Views

'Mugabe strong armed by the Chinese to support Mnangagwa': Report - T...

by Staff Reporter | 31 October 2014 | 6570 Views

Mujuru's lawyers speak out - Musunga and Associates law firm said it c...

by Staff reporter | 31 October 2014 | 5729 Views

Woman drags young sister to court for sleeping with her hubby

by Staff reporter | 31 October 2014 | 4463 Views

Man commits suicide after girlfriends clash at his place

by Court Reporter | 31 October 2014 | 4098 Views

Mujuru on the ropes as Mugabe says Grace has right to be in politics -...

by Staff reporter | 31 October 2014 | 2748 Views

Mujuru, Mnangagwa to be probed - President Robert Mugabe will soon set...

by Staff reporter | 31 October 2014 | 4493 Views

Thousands demand Mujuru's resignation - Scores of Zanu-PF supporters y...

by Staff reporter | 31 October 2014 | 2285 Views

Zanu PF divisions reach boiling point, Gwanetsa fired

by Staff Reporter | 31 October 2014 | 2998 Views

Entertainment

Our hands are clean, says DJ Munya

by Court reporter | 31 October 2014 | 2490 Views

Oliver Mtukudzi to get 'real' PhD - ICONIC musician Oliver Mtukudzi is...

by Staff reporte | 30 October 2014 | 3132 Views

Zimbabwe's JJ survives Big Brother Africa eviction... again - Zimbabw...

by Staff reporter | 27 October 2014 | 2224 Views

Carl Joshua Ncube to star in game show - Comedian Carl Joshua Ncube wi...

by Staff reporter | 23 October 2014 | 1643 Views

LadyBee Anondida - Official video

by Staff Reporter | 23 October 2014 | 4337 Views

Zim representative in the Big Brother Africa survives eviction - Zimba...

by Staff reporter | 20 October 2014 | 3605 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

Positions To Make Female Orgasm Easier During Intercourse

some women are fortunate enough to be able to climax easily, and in almost any sexual position. the majority of women though, sometimes find it difficult to orgasm especially when they are with a partner. sometimes this difficulty is just a result ... Read More
adoniadennis 12 May 2014 ago