Breaking News

Zesa Holdings clears its debts to suppliers in the region

by Staff Reporter
19 February 2013 | 4138 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

Are housemaids an evil lot?

Yes
26.94%
No
64.49%
Not sure
8.57%
490

Comments

News Updates

Email:

Latest News

Acting President Mnangagwa apologises

by Staff Reporter | 22 December 2014 | 535 Views

Beitbridge Alert: Arrivals heighten

by Thupeyo Muleya | 22 December 2014 | 385 Views

Holland questions govt's commitment to national healing

by Staff Reporter | 22 December 2014 | 199 Views

Counterfeit notes hit Bulawayo

by Mbongeni Msimanga | 22 December 2014 | 469 Views

Prophet drugs, rapes, impregnates woman - A PUMULA South woman is four...

by Thubelihle Mabhena | 22 December 2014 | 455 Views

Chronicle warns of fake seed being sold at Renkini - FAKE maize seed ...

by Factmore Dzobo | 22 December 2014 | 218 Views

Senior Zanu PF official implicated in fraudulent vehicle registration ...

by Staff Reporter | 22 December 2014 | 471 Views

Bond coins, signs Zim dollar might return

by Staff Reporter | 22 December 2014 | 478 Views

Highlanders seniors sent packing

by Staff Reporter | 22 December 2014 | 707 Views

New deadline for DZP - Zimbabweans living and working in South Africa ...

by Lovemore Mataire | 22 December 2014 | 572 Views

New Highlanders coach be unveiled tomorrow - BONGANI Mafu is set to be...

by Sports Reporter | 22 December 2014 | 456 Views

Teachers' association warns of a strike over bonus - ZIMBABWE Teacher...

by Staff Reporter | 22 December 2014 | 397 Views

Was Gugurahundi really a Western conspiracy V.P. P Mphoko? - In his ex...

by Nteletsha we Kezi | 22 December 2014 | 558 Views

Come back to the BIG TENT Hon W Ncube, Hon T Biti and the whole Team -...

by Prof Richard M Simango | 21 December 2014 | 3772 Views

Central bank monitoring suspicious transactions

by Business Reporter | 21 December 2014 | 3084 Views

We are not mortgaging minerals says Chinamasa

by Staff Reporter | 21 December 2014 | 1419 Views

Cde Dabengwa, how can you not speak against Gugurahundi architectures ...

by Nomazulu Thata | 21 December 2014 | 4173 Views

Pakistan executes four more militants -  Lahore - Pakistan on Sun...

by Staff Reporter | 21 December 2014 | 1269 Views

US to review North Korea terror status - Washington - The United State...

by Staff Reporter | 21 December 2014 | 948 Views

Nine companies prosecuted for selling contaminated fuel

by Staff Reporter | 21 December 2014 | 2377 Views

Mugabe axes seven more ministers - Seven more parliamentarians have be...

by Staff Reporter | 21 December 2014 | 10125 Views

Woman walks in on daughter having sex with boyfriend - A WOMAN from Co...

by Gibson Mhaka | 21 December 2014 | 7141 Views

Man draws out sword in street fight - IMBIBERS at Enkundleni Bottle St...

by Staff Reporter | 21 December 2014 | 2626 Views

This and that with Mal'phosa - Those that fell from Grace - Well it's ...

by Clerk Ndlovu | 21 December 2014 | 2501 Views

Nyabadza Children's Trust Donates Soccer Balls to Future CR7s

by Staff Reporter | 21 December 2014 | 1086 Views

Thieving teen tells court 'everyone' steals - A DARING Silobela teen...

by Staff Reporter | 21 December 2014 | 3695 Views

Man circumcises sons with nail-cutter

by Staff Reporter | 21 December 2014 | 2431 Views

90-year-old 'witch' caught after failing to eat baby - STORIES of wi...

by Nhlalwenhle Ncube | 21 December 2014 | 4870 Views

Entertainment

Visually impaired singer gets early Christmas present

by Staff Reporter | 19 December 2014 | 2140 Views

Tuku fails to secure seat on Air Zimbabwe

by Staff Reporter | 19 December 2014 | 3460 Views

Mafikizolo jets into Zimbabwe today

by Brenda Phiri | 19 December 2014 | 1859 Views

Sony cancels US release of movie about plot to kill North Korean leader

by Staff Reporter | 18 December 2014 | 2184 Views

Designer sale off 2014

by Hunnar Agency | 18 December 2014 | 3346 Views

10 Zim designers to feature in iFashion Fest 2014

by Hunnar Management Agency | 18 December 2014 | 3208 Views

Kunonga releases fourth album, Kwedu - AFRO-JAZZ singer Victor Kunong...

by Staff Reporter | 18 December 2014 | 1094 Views

Ibumba roars into life with Tuku expected to headline the event - THE ...

by Simbarashe Mutizwa | 16 December 2014 | 1524 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

The Zero-day Vulnerability Cve-2014-4114 Impacting All Versions Of Microsoft Windows

new microsoft windows zero-day vulnerability - cve-2014-4114on tuesday, october 14, 2014, isight partners - in close collaboration with microsoft - announced the discovery of a zero-day vulnerability impacting all supported versions of microsoft win... Read More
SecNews 16 October 2014 ago