Zimbabwe seeks investors to end electricity woes
http://www.theafricareport.com/
Tuesday, 19 July 2011 16:23
Zimbabwe’s power utility is scouting for international investors to fund a
US$1.3 billion expansion programme meant to end the country’s worsening
electricity shortages.
The Zimbabwe Electricity Supply Authority (ZESA) says it is failing to meet
the estimated 2 200 megawatts (MW) of the country’s electricity demands as
its power stations have an installed capacity of 1 960 MW.′′
The projects, if funded will boost Zimbabwe’s generating capacity by 900
megawatts, ZESA spokesman Fullard Gwasira said.′
Gwasira said they had sent out expressions of interest to suitably qualified
contractors of financiers for financing design, construction and
commissioning.′′
The current power stations were built in the 1950s and designed for a
smaller population, with little capacity added since independence in 1980.
This has forced ZESA to ration supplies to both commercial and domestic
users.′′
Efforts to plug the shortfall with imports have been undermined by the lack
of funds with ZESA said to owe regional suppliers particularly Eskom of
South Africa millions of dollars.′′
With no internal capacity – at both state and company level – to improve
this parlous state of affairs, Harare has engaged both foreign and local
independent power producers in an effort to boost generation capacity to 3
000 MW.′′
But independent power producers although keen to help, a stumbling block
has been low power tariffs of 7.5c per kilowatt hour – against a regional
average of 12.6c. ′′
Energy problems are among the key challenges said to be holding back the
country’s economic recovery.′′
Since the turn of the new millennium, the country has struggled with
intensifying blackouts of up to 18 hours a day.
The power cuts have plunged many factories and homes into darkness, as
demand outstrips supply.′′
Various high energy consuming industries have been forced to invest in
expensive alternatives such as generators.