Business / Companies
Dema Diesel Power project in 25 million litre fuel import storm
14 Nov 2016 at 11:47hrs | Views
The controversial Dema Diesel Power Plant is consuming 25 million litres per month which is all imported duty free, a parliamentary committee heard today (Monday).
However, the Dema project consumes 12 million litres of diesel per month to produce 100MW.
The multimillion dollar Dema Diesel Power Plant was meant to consume 24 million litres of fuel per month.
The plant is said to be a priority under Zim-Asset.
However, during the commited session, Zanu PF Zvishavane-Ngezi MP John Holder queried why the 25 million litres for Dema project is being permitted to be imported duty free instead of the prescribed 12m litres.
In response, a Zimbabwe Energy Regulatory Agency ( ZERA) official said the "extra" fuel is for emergency purposes.
Sakunda Holdings, which has partnered with President Robert Mugabe's in-law Derrick Chikore, brother to Simba was awarded the contract, initially pegged at $194 million a year, without going to tender.
The project was mooted by government last year as a measure to ease acute power shortages which saw households and industry endure rolling power cuts that helped decimate local industry.
However, the Dema project consumes 12 million litres of diesel per month to produce 100MW.
The multimillion dollar Dema Diesel Power Plant was meant to consume 24 million litres of fuel per month.
The plant is said to be a priority under Zim-Asset.
In response, a Zimbabwe Energy Regulatory Agency ( ZERA) official said the "extra" fuel is for emergency purposes.
Sakunda Holdings, which has partnered with President Robert Mugabe's in-law Derrick Chikore, brother to Simba was awarded the contract, initially pegged at $194 million a year, without going to tender.
The project was mooted by government last year as a measure to ease acute power shortages which saw households and industry endure rolling power cuts that helped decimate local industry.
Source - Byo24News
