News / Africa
Mozambique threatens power cuts to Zimbabwe over 'huge debt'
16 May 2012 at 10:23hrs | Views
HARARE - Mozambique's Cabora Bassa Hydro Electricity Company is threatening to further reduce or suspend power exports to Zimbabwe over ZESA Holdings' huge debt, a senior government official said yesterday.
Zimbabwe Deputy Minister of Energy and Power Development, Hubert Nyanhongo told New Ziana news agency that Zesa Holdings owes the Mozambican utility US$80 million and is servicing its debt too slowly.
However, he said Zimbabwe is committed to repaying its debt in spite of financial challenges facing ZESA Holdings.
Cabora Bassa has in the past reduced power supplies to Zimbabwe over the huge debt.
ZESA imports power from neighbouring countries to bridge a shortfall in domestic generation and with the onset of the winter season, the country's power deficit has slightly increased as power demand rises.
Nyanhongo said in most cases, only three out of the six power generating units at Hwange were functional.
The power utility is currently seeking a partner to build two new generation units at Hwange.
Zimbabwe Deputy Minister of Energy and Power Development, Hubert Nyanhongo told New Ziana news agency that Zesa Holdings owes the Mozambican utility US$80 million and is servicing its debt too slowly.
However, he said Zimbabwe is committed to repaying its debt in spite of financial challenges facing ZESA Holdings.
ZESA imports power from neighbouring countries to bridge a shortfall in domestic generation and with the onset of the winter season, the country's power deficit has slightly increased as power demand rises.
Nyanhongo said in most cases, only three out of the six power generating units at Hwange were functional.
The power utility is currently seeking a partner to build two new generation units at Hwange.
Source - New Ziana
