News / National
Chinese debt stalls Kariba power project
05 Dec 2012 at 18:32hrs | Views
The Parliamentary Portfolio Committee on Mines and Energy says government should come up with ways of ensuring that the US$27 million debt owed to the Chinese company, Sino-Hydro by the Industrial Development Corporation and Farmers World Holdings is repaid, so that the Kariba South expansion project can be completed.
The portfolio committee is concerned about impediments to the Kariba South expansion project that could see the hydro-electric power station generating an additional 300 megawatts.
Sino-Hydro won the tender for the expansion project but US$27 million debt the company is owed for farming equipment has to be repaid first for the project to go on.
The chairman of the portfolio committee, Cde Edward Chindori-Chininga said there is urgent need for government to find ways of resolving the issue instead of compelling the Zimbabwe Electricity Supply Authority (ZESA) to pay a debt which it did not accumulate.
Chindori-Chininga said going to tender was a waste of time and resources as the company awarded the tender already had an agreement with government.
While the Ministry of Finance had initially agreed that the project would cost US$700 million when a memorandum of understanding was signed, Sino-Hdyro was awarded the tender at US$368 million.
The portfolio committee is concerned about impediments to the Kariba South expansion project that could see the hydro-electric power station generating an additional 300 megawatts.
Sino-Hydro won the tender for the expansion project but US$27 million debt the company is owed for farming equipment has to be repaid first for the project to go on.
The chairman of the portfolio committee, Cde Edward Chindori-Chininga said there is urgent need for government to find ways of resolving the issue instead of compelling the Zimbabwe Electricity Supply Authority (ZESA) to pay a debt which it did not accumulate.
Chindori-Chininga said going to tender was a waste of time and resources as the company awarded the tender already had an agreement with government.
While the Ministry of Finance had initially agreed that the project would cost US$700 million when a memorandum of understanding was signed, Sino-Hdyro was awarded the tender at US$368 million.
Source - zbc
