Opinion / Columnist
Paid an arm and leg for Hwange Unit 7 & 8 and yet they not generating - Chinese demanding head in a silver platter!
20 Nov 2024 at 21:17hrs | Views
ZESA's explanation of reduced generation from Hwange Thermal Power Station especially due to repeated Units 7 and 8 did not make any sense at all. The two units costing US$ 1.4 billion were commission last year, for Pete's sake. How can they be giving endless operational problems already?
The Chinese who supplied, built and commissioned the two units answered the question.
"ZETDC (a ZESA subsidiary) owes Hesco around US$430 million. Hesco has no money to pay for operations and maintenance," the Chinese Company Hesco employee explained.
"It (Hesco) also has no money to pay for coal supplies and shareholders. Maybe it will be shut down in the future due to lack of money to fund operations.
"So far, we have invested hundreds of millions of dollars but the return is zero!"
Five key points spring to mind immediately:
1) We all know that there is no transparency in most projects in Zimbabwe, especially those involving our friends from the East. And so there will be no competitive bidding, there will be corruption, the country is known for not paying its debts, poor project management, etc., etc.; the bottom line is the nation will paying an arm and leg! It is entirely possible 40% of the US$1.4 billion was the "punishment" and so the Chinese are switching off the two generators to pressure the country to cough up!
2) The Chinese have been making fat profits in the murky diamond and gold mining and, no doubt, in many more other areas. It is quite possible the Chinese are making US$500 million a month from the wholesale looting of diamonds and gold alone. Much more than Hesco is asking for. "What of it?" they would say if asked.
3) There have been many "mega deals projects" signed with the Chinese ever since Mugabe's day that have fizzled out and we now know why. Zimbabwe's reputation of failing to pay her debts is well documented. In 1999 IMF, World Bank and many other western financial institution stopped advancing any financial assistance to Zimbabwe. Zanu PF leaders and their apologists will never admit financial assistance was cut off for failure to pay debts; they blame sanctions. The Chinese loans will once again be cut off and they have not imposed any sanctions.
4) How many millions of dollars is the nation losing everyday in lost production and other indirect costs as a result of all these extended ZESA power cuts? A video has been circulating on social media of Chitungwiza Hospital switch off - the consequences are a lot more than "the inconveniences caused"!
5) Zimbabweans will complain about the power cuts and even joke about it and move on. At least, they think they are moving on not knowing that they are sinking deeper and deeper into the economic and political hell-on-earth 44 years of gross mismanagement and rampant corruption by Zanu PF thugs and their political MDC/CCC side kick have landed the nation. Nations get the government their deserve and we, in Zimbabwe, do and are paying dearly for our folly!
The Chinese who supplied, built and commissioned the two units answered the question.
"ZETDC (a ZESA subsidiary) owes Hesco around US$430 million. Hesco has no money to pay for operations and maintenance," the Chinese Company Hesco employee explained.
"It (Hesco) also has no money to pay for coal supplies and shareholders. Maybe it will be shut down in the future due to lack of money to fund operations.
"So far, we have invested hundreds of millions of dollars but the return is zero!"
Five key points spring to mind immediately:
2) The Chinese have been making fat profits in the murky diamond and gold mining and, no doubt, in many more other areas. It is quite possible the Chinese are making US$500 million a month from the wholesale looting of diamonds and gold alone. Much more than Hesco is asking for. "What of it?" they would say if asked.
3) There have been many "mega deals projects" signed with the Chinese ever since Mugabe's day that have fizzled out and we now know why. Zimbabwe's reputation of failing to pay her debts is well documented. In 1999 IMF, World Bank and many other western financial institution stopped advancing any financial assistance to Zimbabwe. Zanu PF leaders and their apologists will never admit financial assistance was cut off for failure to pay debts; they blame sanctions. The Chinese loans will once again be cut off and they have not imposed any sanctions.
4) How many millions of dollars is the nation losing everyday in lost production and other indirect costs as a result of all these extended ZESA power cuts? A video has been circulating on social media of Chitungwiza Hospital switch off - the consequences are a lot more than "the inconveniences caused"!
5) Zimbabweans will complain about the power cuts and even joke about it and move on. At least, they think they are moving on not knowing that they are sinking deeper and deeper into the economic and political hell-on-earth 44 years of gross mismanagement and rampant corruption by Zanu PF thugs and their political MDC/CCC side kick have landed the nation. Nations get the government their deserve and we, in Zimbabwe, do and are paying dearly for our folly!
Source - zimbabwelight.blogspot.com
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