IDBZ raises US$60m for Zesa’s meters
http://www.theindependent.co.zw/
September 21, 2012 in Business
THE Industrial Development Bank of Zimbabwe (IDBZ) is raising US$60 million
to partner the Zimbabwe Electricity Supply Authority (Zesa) in the ongoing
implementation of the prepaid metering project, IDBZ acting director Alex
Machimbirike said.
Report by Staff Writer
He said US$30 million would be raised through IDBZ infrastructure bonds and
syndication arrangements.
Under the scheme, Zesa plans to install 600 000 prepaid meters countrywide
as part of the first stage to effectively phase out its conventional
shambolic post payment billing system which resulted in it accumulating more
than US$600 million in unpaid bills.
Zesa last week began rolling out pre-paid meter system in Harare and the
project is expected to spread to other parts of the country next year.
Zimbabwe continues to battle with power deficits and currently generates
1000 MW against a demand of 2200 MW, hence the resultant erratic power
supply hampering local industry.
Machimbirike said his bank has so far disbursed US$58 million towards the
refurbishment of Hwange, Kariba, Harare, Munyati and Bulawayo power stations
in order to up power generation.
What exacerbates power deficits in Zimbabwe are lack of maintenance of
ageing equipment and lack of investment in the sector.
The Zimbabwe Energy Regulatory Authority (Zera), however, last week
announced that it had licensed electricity generation projects worth US$10,1
billion, a development likely to address the power deficit in the
country.
Zera said the licensed projects would have capacity to bring in 5 400 MW
onto the national grid.
The projects would use mini-hydro, biogas, wood waste, coal-fired and solar
technologies.
The energy regulator said it licensed a 250 MW solar project worth US$750
million, which is currently at the development phase.
Four investors had been licensed to develop coal-fired electricity in
projects worth US$9,3 billion.
The projects include RioZim’s Sengwa, Essar and China Africa.
Border Timbers has also injected US$1,6 million for a woodwaste project
which will bring in 500KW for the group’s own use.
The three biogas projects to generate 96MW are in Triangle, Hippo Valley and
Chisumbanje.
Plans are still on the cards to expand capacity at Batoka to 800MW by 2020
and Kariba South to 300MW by 2016.
Zera is assisting the development of the Renewable Energy Policy framework
and drafting the Feed-in-Tariff framework for renewable energy technologies.
The energy regulator is also working on the Energy Efficiency Policy
framework to advise both producers and consumers to ensure optimisation of
energy resources.