Breaking News

Zesa Holdings clears its debts to suppliers in the region

by Staff Reporter
19 February 2013 | 3609 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

Should Zimbabweans be deported from the UK?

Yes
26.02%
No
71.94%
Not sure
2.04%
196

Comments

News Updates

Email:

Latest News

SA based Chimurenga musician release album

by Staff Reporter | 19 April 2014 | 90 Views

Son stabs mum to death - A LOVING relationship between a sick mother a...

by Staffr eporter | 19 April 2014 | 184 Views

Please help restore sanity at Siansundu Sec School (Dinga district) - ...

by Former teacher | 19 April 2014 | 829 Views

21 die, 163 injured in road accidents

by Staff Reporter | 19 April 2014 | 1362 Views

BBC to screen 'Our World, Mugabe at 90' at 9:30pm tonight - BBC New...

by Staff reportyer | 19 April 2014 | 1170 Views

Prophet Makandiwa's Judgment Night 2 ready to roll - The biggest pente...

by Lovemore Chikova | 19 April 2014 | 913 Views

Angola airline to increase Zimbabwe, Luanda direct flights - Angola's ...

by Staff reporter | 19 April 2014 | 534 Views

Man finds teen gardener bedding his wife - A Pumula man was arrested...

by Staff reporter | 19 April 2014 | 2641 Views

Another pay delay irks civil servants - Civil servants have described ...

by Staff reporter | 19 April 2014 | 1181 Views

Mugabe backs MDC-T renewal team - President Robert Mugabe yesterday to...

by Staff reporter | 19 April 2014 | 1051 Views

Zanu PF MP nabbed after firing three shots

by Staff Reporter | 19 April 2014 | 1455 Views

Prophet Makandiwa pulls 10 000 foreigners

by Staff Reporter | 19 April 2014 | 2630 Views

Mugabe calls for peace in Tsvangirai's party

by Staff Reporter | 19 April 2014 | 2513 Views

Obama trying as much as possible to please whites, says Mugabe

by Staff Reporter | 19 April 2014 | 2608 Views

11 die in 74 road accidents - ELEVEN people were killed while 77 other...

by Staff Reporter | 19 April 2014 | 1434 Views

When Bosso beat Harare City at White City - WhatsApp photos

by Byo Resident | 19 April 2014 | 2319 Views

Pope Francis washes feet of disabled, including elderly Muslim

by Staff Reporter | 19 April 2014 | 963 Views

Earth-sized planet discovered in 'habitable zone'

by Staff Reporter | 19 April 2014 | 1852 Views

No water for five days - WhatsApp update - Please note that Bulawayo24...

by Beitbridge Resident | 18 April 2014 | 2425 Views

Heavy police deployment for ZITF - Bulawayo police have increased thei...

by Staff Reporter | 18 April 2014 | 1871 Views

Leave serial womanising to Morgan Tsvangirai - Mugabe

by Staff Reporter | 18 April 2014 | 5605 Views

Stepfather disappears after rape incident - POLICE in Mutare have laun...

by Takudzwa Nderere | 18 April 2014 | 3333 Views

Woman kills son (3) to please lover - A MUTASA woman was last week arr...

by Brenda Saburi | 18 April 2014 | 3867 Views

Mystery murder, mutilation - MUTASA villagers were left weak-kneed fol...

by Liberty Dube | 18 April 2014 | 2936 Views

Didymus Mutasa now 'fit as a fiddle' - ZANU-PF secretary for administr...

by Abel Zhakata | 18 April 2014 | 2148 Views

Assassination attempt on Mugabe - During the struggle for independence...

by Staff reporter | 18 April 2014 | 7096 Views

Zim woman nabbed with 25kgs of drugs in India - India's Customs and C...

by Staff reporter | 18 April 2014 | 2036 Views

FC Platinum thrash Dembare to lift Uhuru Cup - Dynamos 0 - 3 FC Plati...

by Staff reporter | 19 April 2014 | 3368 Views

MDC-T top gun attends Independence celebrations - In what could be bes...

by Staff reporter | 18 April 2014 | 3734 Views

Entertainment

Deborah Fraser jets in

by Staff Reporter | 19 April 2014 | 1059 Views

All-white party for Dongo - Soulful singer Trevor Dongo is set perform...

by Jonathan Mbiriyamveka | 18 April 2014 | 2036 Views

Tuku Greatest Hits Concert postponed - Oliver Mtukudzi's Greatest Hits...

by Staff reporter | 16 April 2014 | 1415 Views

'Corruption is betrayal of the values of the liberation struggle' says...

by Jonathan Mbiriyamveka | 16 April 2014 | 1867 Views

Stand Up comedian to record one man show in Zimbabwe - Daliso Chaponda...

by Staff reporter | 16 April 2014 | 1214 Views

L'Vovo Derrango billed for Bulawayo show - THOSE attending the Zimbabw...

by Bongani Ndlovu | 16 April 2014 | 1297 Views

Artist Profile - Interview with D2X

by Staff Reporter | 14 April 2014 | 1656 Views

Generations actor's Bulawayo show flops

by Showbiz Reporter | 14 April 2014 | 6089 Views

Mukanya gets 'wild' applause - Self exiled legendary musician Dr Thoma...

by Staff reporter | 13 April 2014 | 5343 Views

Freshlyground to perform in Zim's HIFA after insulting Mugabe - South...

by Arts reporter | 13 April 2014 | 3663 Views

Generations' actress draws big crowd

by Staff Reporter | 13 April 2014 | 5619 Views
iBlog

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

Get My Love Back By Black Magic +919828027633

If you are looking for happiness, prosperity, success, and health in your life then ahmed molvi ji is the right stoppagehe helped many peoples who have lost their track to live life, who were depressed and specially helped addicted person to lead a n... Read More
ahmedmolvi 18 April 2014 ago