HARARE The Zimbabwe Electricity Supply Authority (ZESA) Holdings has said negotiations were still underway with a Chinese bank to provide US$400 million to boost generation capacity at its Kariba hydro plant on the Zambezi River. ZESA chief executive Ben Rafemoyo on Monday said the money would be used to expand power output at Kariba by an additional 300 megawatts (MW).
“It’s money we expect from one financier,” the ZESA chief executive officer said, adding; “As of now none of that money has been raised, ideally you need one financier to raise that kind of money.”
The expansion, to be funded by the Export and Import Bank (EXIMBANK) of China, would bring the stations electricity generating capacity to over 1 000MW.
In May, the government signed a memorandum of understanding (MoU) with EXIMBANK to finance the project.
EXIMBANK would soon avail the resources to Sino Hydro, the firm which was contracted to undertake the expansion exercise, according to Rafemoyo.
WE expect that within the next six months all issues relating to the agreement with Sino Hydro will be completed, he said.
The ZESA boss said while the extra 300MW would significantly lessen power shortages in the country, it would not eliminate them entirely.
Zimbabwes total requirement stands at 2 000MW, but the country is currently generating around 1 100MW.
Zimbabwe is importing 150MW from Mozambique, and another 125MW from Zambia in a bid to ease power shortages.
ZESAs inability over the years to boost generation capacity at its ageing power stations and a critical shortage of foreign currency to import adequate electricity from neighbouring countries has left Zimbabwe grappling with severe power shortages.
The wholly government-owned energy firm says cash-rich foreign investors remain reluctant to provide funding badly needed to boost power generation because of uncertainty about the countrys future political and economic direction.
A coalition government formed by President Robert Mugabe, Prime Minister Morgan Tsvangirai and deputy Premier Arthur Mutambara last year has brought a degree of stability to Zimbabwes political situation but the future remains uncertain.
Incessant squabbling between Mugabe and Tsvangirai has left political analysts wondering about the Harare coalition governments long-term viability while most potential investors appear to have adopted a wait and see attitude before they can consider making any significant investments in the country.
Post published in: News