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Zim govt pays Eskom US$10 mln, clears its debt to Zesa

27 Jun, 2019 - 16:06 0 Views
Zim govt pays Eskom US$10 mln, clears its debt to Zesa

eBusiness Weekly

HARARE – The Zimbabwean government said on  Wednesday it has made a part payment of US$10 million to clear its debt  to South African power utility, Eskom which is expected to create room  for more power imports from the neighbouring country.

The country, which is facing crippling power shortages that have  resulted in the introduction of load shedding, owed both Eskom and HCB  of Mozambique a combined US$83 million.

The debt has blocked the ability of local power utility, Zesa Holdings  to import more power to cover its deficit averaging about 500 Megwatts.

Energy and Power Development Minister, Fortune Chasi said besides the  payment made to Eskom, the government had also cleared its debt of ZWL$20 million with Zesa, and is due to avail a further ZWL$20 million  to support the company’s rehabilitation programmes.

“The payment to Eskom might unlock more relief support. It’s a  significant development which we expect to alleviate our current  difficulties,” Chasi told a post-Cabinet media briefing.

He said talks would be going on with the South African utility on the  amount of power that could be extended to Zimbabwe aside from the 50 MW  that it was currently importing.

At the same time, negotiations would also be going on with HCB after  both Zimbabwean and Mozambican Presidents, Emmerson Mnangagwa and Felipe  Nyusi respectively met last week and agreed on a possible power supply  deal.

Chasi emphasised the need for both commercial customers and households  to follow in the footsteps of the government and settle their bills with  the power utility which amount to ZWL$1.2 billion.

“The resolution of our power issues falls on all of us. We must pay our  bills, all of us,” he said.

“It is very easy to criticise Zesa but we owe bills amounting to $1.2  billion to our own institution that is at the nerve centre of our  economy,” he said.

He said in the meantime, strategies were being put in place to diversify the country’s power sources, with focus on solar, wind and  gas.

“We have no control over the rains, we need to hedge against the risks,” he said, referring to current production challenges being faced at the Kariba hydro-power station owing to low  water levels following a drought last season. – New Ziana

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