The Times of Zambia (Ndola)

Zambia: Zesco Makes Huge Loss Running Diesel Stations

16 May 2008


Ndola — ZESCO spent K5.6 billion to run diesel power stations in the last four months countrywide but managed to collect only K468 million, Energy and Water Development Permanent Secretary Peter Mumba has said.

Mr Mumba was making a submission to the committee on estimates on his ministry's budget performance during the period 2006-2007.

"The cost of running diesel stations is very high compared to alternative sources such as small hydropower stations or grid extension," he said.

Mr Mumba said in 2006, Zesco through the Rural Electrification Authority entered into an agreement with Government to implement 43 projects countrywide at a cost of K48. 32 billion.

Acting committee chairperson Saviour Chishimba queried Mr Mumba on how much Zesco was collecting.

Committee member, Batuke Imenda asked how much the country was earning by exporting power to other countries like South Africa and how much it was spending in importing the same power from other countries.

Mr Mumba said he could not give adequate answers but would avail a detailed report to the committee later.

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