Monday, 21 November 2016

MORE CASH OR ITS DARKNESS : ZESA

Zesa has warned that the country will be plunged into darkness unless more was made available.

ZESA Holdings says the continued inadequate allocation of funds by the central bank might plunge the nation into darkness as the power utility is getting into serious arrears with regional electricity suppliers.

 Appearing before the Parliamentary Portfolio Committee on Mines and Energy chaired by Masvingo Central legislator, Dr Daniel Shumba, ZESA Group CEO, Engineer Josh Chifamba said the power utility is getting US$1,5 million weekly from the Reserve Bank of Zimbabwe (RBZ) out of US$5 million needed to pay regional suppliers.

"Arrears towards regional electricity suppliers are increasing as we are only getting US$1,5 million out of the required US$5 million, and this might trigger massive load-shedding as we cannot meet the pre-payment demands by some of the companies," he said.
 
The 200 mega watt Dema diesel emergency power plant dominated the oral evidence as legislators questioned the rational of having such a project.
 
Engineer Chifamba said the project remains critical for the country, reminding legislators that the time of setting up the plant was appropriate.
 
The inadequate foreign currency allocation to the power utility is of major concern considering that government is emphasising production within the economy, hence the need to constantly have power for the manufacturing sector and other productive sectors of the economy.

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