Published by the government of Zimbabwe
30 April 2004
Harare — THE Zimbabwe Electricity Supply Authority (Zesa), through the Jewel Bank, has floated megawatt bills seeking to raise $30 billion for the purpose of financing the expansion of the rural electrification programme.
The bills, which opened yesterday, attracted interest rates on tender basis while applications had to be in multiples of $10 million each.
The bills have attractive security features such as irrevocable Government Guarantee and a sinking fund managed by the Jewel Bank 'with ring-fenced revenue where issuer will make contributions.'
The megawatt bills also had a tax exemption status by the Ministry of Finance and Economic Development and could also be accepted as collateral for overnight accommodation by the central bank.
Zesa said the invited investors were not limited "to pension and provident funds, insurance companies, life mutuals, commercial banks" but other institutions as well as individuals are free subscribed.
The programme is being spearheaded by Zesa executive chairman, Dr Sydney Gata.
The Rural Electrification Scheme was mooted four years ago but has made marginal progress ever since due to limited financial resources.
The programme has been equipped towards the development of growth points and rural areas in order to attract investments.
To date $2 billion has been chewed in the electrification programme.
However, Zesa has been scouting for major forms of investments under the policy at points or targeted areas in order to attract a huge base of investors in tourism, agriculture, construction, mining and banking among other industries.
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