Zimbabwe has paid $8 million to Eskom of South Africa and
Hydro Cahora Bassa (HCB) of Mozambique to avoid losing 350 megawatts as the
country battles to liquidate arrears amounting to over $50 million. Eskom had
threatened to switch off Zesa Holdings beginning yesterday.
Zesa Holdings,
Ministry of Energy and Power Development and Reserve Bank officials yesterday
met Eskom management in South Africa where they presented an acceptable payment
plan.
The power utility management on Monday met HCB officials in
Harare over Zimbabwe’s debt which stands at $10 million.
Mozambique supplies Zimbabwe with 50MW, while Eskom — which
is owed about $40 million — gives the country 300MW. Speaking from South
Africa, Zesa chief executive Engineer Josh Chifamba yesterday said the meeting
with their counterparts was fruitful.
“We had tense and rigorous discussions,” he said. “We had
tough negotiations but finally they accepted our payment plan which they expect
us not to default on. Any default means curtailment of power.”
Eng Chifamba declined to discuss the figures involved
saying “that is confidential information”.
A source however, said: “The inclusion of Ministry of
Energy and Power Development and RBZ officials was meant to strengthen Zesa’s
commitment.
“The officials were guaranteeing and what is needed now is
for them to walk the talk. We were on the verge of being switched off and that
would have had a devastating impact on agriculture and the economy. To avoid
being switched off and in the face of forex challenges we managed to pay $8
million to the two regional power utilities. They payment plan presented means
the debt has to be cleared in the next four months.”
This is the second time in as many months that Zimbabwe
faced a load shedding threat after Zesa Holdings failed to honour a payment
plan it agreed on with the regional power utilities.
Zesa attributes the failure to foreign currency shortages.
Any load shedding at the moment will deal a major blow to
industry as well as agricultural activities at the Grain Marketing Board depots
and the winter wheat farming underway.
Zesa in May agreed to pay Eskom about $10 million monthly
to clear its areas amounting to over $45 million.
This would have seen the debt being liquidated in four
months.
At the same time, the power utility agreed to pay for
current supplies.
Foreign currency shortages have seen Zesa failing to meet
the payment obligations.
Zimbabwe has been relying on power imports from South
Africa and HCB of Mozambique to boost supplies as a way of promoting production
in the economy.
Zimbabwe consumes about 1 400MW daily.
Yesterday the power stations in the country were generating
1 159MW. The country has been receiving steady power supplies since
December 2015 as a result of various initiatives such as imports.
Zesa is refurbishing its power stations while also working
on expansion projects in Kariba and Hwange.
The projects take time to complete hence the decision by
Zesa to rely on power imports.
The country’s economic blueprint, Zim-Asset, identifies
energy as a key enabler under infrastructure and utilities, as well as the
value addition and beneficiation initiatives.
This cluster needs massive support and its failure spells
doom for the country. herald
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