SA, Zambia cut power supplies to Zim
- From: "Zvakanaka" <lalapansi@xxxxxxxxx>
- Date: Thu, 13 Dec 2007 06:31:32 +0200
SA, Zambia cut power supplies to Zim
Clemence Manyukwe Staff Reporter
Fingaz
SOUTH Africa and Zambia have disconnected power to Zimbabwe because of its
failure to service substantial accumulated debt, a parliamentary report
tabled in the Senate last week shows.
And an agreement with Nampower of Namibia, touted by government as the
solution to the country's deepening power crisis, now also hangs in the
balance after Zimbabwe failed to honour its part of the deal.
The Namibians have already fulfilled their side of the bargain by paying
US$40 million. But, contrary to glowing government comments on the Namibia
deal, the report says Zimbabwe has thrown the arrangement into jeopardy.
The report was prepared by Members of Parliament (MPs) serving on the
Portfolio Committee on Mines, Energy, Environment and Tourism, and was
presented in the Senate last week. The report paints a dire picture of the
extent of the country's power crisis.
"The country has not paid its debts, for the period March 2007 to August,
amounting to US$42 million. The Reserve Bank of Zimbabwe has been unable to
pay this debt because of the unavailability and cost of foreign currency vis
a vis the low tariffs. As a result, South Africa and Zambia have
discontinued supplies," the report, which probed the prevailing power
crisis, said.
The report noted that Mozambique and the Democratic Republic of the Congo
(DRC) are the only countries still supplying power to Zimbabwe.
"Zimbabwe normally imports 25 percent of its electricity, amounting to 150
megawatts. Mozambique and DRC are the only countries that continue to supply
Zimbabwe out of goodwill, irrespective of huge demand for electricity in the
region. The committee strongly urges government to pay the Mozambique
government US$20 million to avoid further disconnections," the report said.
The MPs expose the government's policy failures and lack of planning.
According to the report, it had been projected as far back as 1989 that
Zimbabwe would suffer power deficits in 2007, unless there was adequate
investment in the power sector to match population growth.
The country's total power consumption is about 2200 megawatts, but local
generation has peaked at 812 megawatts. According to the report, domestic
consumers use about 24 percent of the total national requirement, with the
rest consumed by industry. The power crisis was due to low generation at
power stations, shortages of foreign currency for imports, shortages of
coal, sub-economic tariffs, lack of new investment and the vandalism of ZESA
equipment and infrastructure.
On low tariffs, the committee said it was ironic that consumers were
spending more money on alternative sources of power during power cuts, at a
time when industry is subsidised.
"A tier system can be introduced, where poor consumers are subsidised. The
rest of the sectors should pay cost effective tariffs," the MPs recommended.
The report says there was no meaningful investment into power in the past 20
years because the environment was not conducive to investors.
The report shows interest in power projects such as Batoka, Lupane Coal Bed
Methane and Gokwe North by Russian and the Turkish investors had dwindled.
Commenting on the impact of the power crisis, the report said:
"It is estimated that businesses are operating at less than 30 percent of
capacity. Mines are operational for only four hours out of the 24-hour
schedule. Gold production for 2007 is expected to be at an all-time low of
below eight tonnes, in comparison with three years ago when the country
managed to produce 21 tonnes.
"The communication networks have been experiencing continued congestion,
partly due to power shortages, adversely affecting business."
"The poor wheat harvests of 2007 are partly attributed to the shortage of
electricity, which affected irrigation. The situation is making it difficult
for companies to plan. It has become difficult for households to plan."
Presenting the 2008 national budget statement last Thursday, Finance
Minister Samuel Mumbengegwi said the joint venture between ZESA and Nampower
would see an additional 100 MW being produced this month.
However, the parliamentary report said: "Namibia invested US$40 million but
Zimbabwe has not honoured its agreement of investing $100 billion. The
contract stipulates that HPC (Hwange Thermal Power Company) should export
30MW in January 2008."
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