eliminary agreement with Harare last year for the Zimbabwe Electricity Supply Authority (ZESA) to take up 25 percent stake in (HCB).
Last year, ZESA said the government was mobilising funds to pay for the HCB stake through its partnerships with strategic investors in Asia.
But well-placed sources said Harare, which is battling its worst ever economic crisis and is desperate for foreign currency to import food, fuel and essential medicines among other basic commodities, later developed cold feet on the deal because it could not raise the hard cash to pay.
“It is our understanding that the Government of Mozambique has already finalised and re-allocated the new shares to new partners following the non-receipt of Government of Zimbabwe letter of interest,” a senior ZESA manager said. – ZimOnline
25.1.2007
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ZESA loses out on power deal
HARARE - Zimbabwe has lost out on a US$500 million stake in neighbouring Mozambique's Hidroelectrica de Cahora Bassa (HCB) electricity firm after failing to raise cash to finance a deal experts had said could go a long way to ending the country's perennial energy shortages.
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