Zimbabwe negotiates flexible power deal with Eskom

Zimbabwe has been assured of continued power supply from South Africa's power utility, Eskom, despite a $38.2 million debt. Eskom is also currently engaging Zesa Holdings over the extension of the 300MW power import deal which expires soon.

ZESA Holdings and South African power utility, Eskom, signed an inter-utilities memorandum of understanding which paves way for renewed negotiations for power supply contracts.

Energy and Power Development Minister Samuel Undenge told reporters soon after a courtesy call by Eskom officials currently in the country that the debt to the SA power utility had been declining.

The inter-utilities MOU is expected to give the local power utility a new lease of life regarding the importation of power.

Executives of both firms attended the meeting showing the seriousness of the relationship being forged by the power utilities with Minister of Energy and Power Development Dr Samuel Undenge saying Eskom has excess power which the local economy can benefit from.

South African ambassador to Zimbabwe Mr Mphakama Mbete said energy is a key enabler, hence the need for neighbouring countries to collaborate in critical sectors of the economy.

ZESA Holdings is importing power from South Africa and Mozambique which has pushed the firm's debt close to US$80 million though efforts are being made to reduce part of the debt with US$6 million having been paid last week.

The arrangement which was guaranteed by Government initially entailed that ZESA pays about $7 million upfront per month, before negotiating a more flexible weekly instalment estimated at around $1.7 million due to foreign payments challenges.