Business / Economy
Zesa clears Mozambique debt
16 Jul 2015 at 17:19hrs |
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ZESA Holdings, has paid off its overdue debt to Mozambique's Hydro Cahora Bassa (HCB).
THE country's integrated power generation and distribution company, ZESA Holdings, has paid off its overdue debt to Mozambique's Hydro Cahora Bassa (HCB).
The debt stood at nearly $30 million late last year, although it had initially been at about US$100 million.
Julian Chinembiri, the managing director of the Zimbabwe Electricity Transmission and Distribution Company, a unit of ZESA Holdings, told the Financial Gazette on the sidelines of a workshop on vandalism and theft of electricity infrastructure in the capital last week that the debt had been cleared.
It is understood that ZESA was forced to pay off the debt after it realised HCB could cut supplies anytime, a move which would have significantly disrupted the country's economic activities and possibly worsened a dire economic crisis.
Now that the local power utility has paid off its debt, it means continued imports to achieve security of electricity supply in line with the existing arrangements under a power purchase agreement with HCB are guaranteed.
Zimbabwe has been experiencing massive load-shedding across the country owing to low power generation from the country's five power stations.
THE country's integrated power generation and distribution company, ZESA Holdings, has paid off its overdue debt to Mozambique's Hydro Cahora Bassa (HCB).
The debt stood at nearly $30 million late last year, although it had initially been at about US$100 million.
Julian Chinembiri, the managing director of the Zimbabwe Electricity Transmission and Distribution Company, a unit of ZESA Holdings, told the Financial Gazette on the sidelines of a workshop on vandalism and theft of electricity infrastructure in the capital last week that the debt had been cleared.
It is understood that ZESA was forced to pay off the debt after it realised HCB could cut supplies anytime, a move which would have significantly disrupted the country's economic activities and possibly worsened a dire economic crisis.
Now that the local power utility has paid off its debt, it means continued imports to achieve security of electricity supply in line with the existing arrangements under a power purchase agreement with HCB are guaranteed.
Zimbabwe has been experiencing massive load-shedding across the country owing to low power generation from the country's five power stations.
Source - fingaz
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