The Herald (Harare)
Published by the government of Zimbabwe

Zimbabwe: ZESA Further Cuts Debt to Mozambican Suppliers

Martin Kadzere

3 January 2008


Harare — ZESA Holdings on Monday further reduced its debt to Mozambican power firms by US$7 million, bringing to US$35 million the amount it has paid to Hidroelectrica de Mocambique and Electrica de Mocambique inside one and a half months.

In November last year, Zesa paid a total of US$28 million it owed the power firms in the neighbouring country for electricity imports to Zimbabwe. "I can confirm that we paid another US$7 million two days ago and we are negotiating with them to increase power exports to Zimbabwe," Zesa chief executive Engineer Ben Rafemoyo said in an interview yesterday.

They were negotiating for 300 megawatts. Zimbabwe is currently importing 75MW from Mozambique. "We are negotiating with them to supply us with 300MW. This will go a long way to reduce the current load-shedding trends." Apart from Mozambique, Zimbabwe imports electricity from Zambia and the Democratic Republic of Congo South Africa's power utility, Eskom, cut electricity exports to Zimbabwe owing to recurrent breakdowns at its power stations. Zimbabwe generates power at Kariba South Hydro-Electricity Plant and Hwange Thermal Power Station. Kariba produces 750MW when operating at full throttle and Hwange generates about 900MW. However, due to recurrent breakdowns and coal shortages, Hwange is producing less than 250MW.

Unit number three of Hwange Power Station is currently under refurbishment under the US$50 million inter-utility deal between Zesa Holdings and NamPower, Namibia's sole electricity supplier. It was initially scheduled to be recommissioned during the last week of December but due to delays in the re-assembling of the plant, this is now scheduled for end of this month.

Under the deal, NamPower will help to refurbish four units at Hwange Thermal Power Station to boost its output by 480MW. NamPower will initially import 40MW at subsidised tariffs when the first unit is rehabilitated then more eventually when other units are refurbished.

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