The Minister of Energy and Power Development, Zhemu Soda, said that Zimbabwe has sealed a new power import deal with Zambia while retaining existing deals with Mozambique and South Africa.
Zimbabwe’s power import contracts with Mozambique’s Electricidade de Mocambique and Zambia’s ZESCO were set to expire at the end of July after ZESA Holdings indicated that it struggling to pay the required US$6.3 million.
As a result, the contracts were facing termination, with South Africa’s Eskom ready to take over ZESA’s contracts.
On Friday, Soda said the deals with Zambia and Mozambique’s power utilities had been paid for, and parties were expected to meet their sides of the bargain. He said:
With regards to the power import deal which was struck between our power utility and ZESCO of Zambia; this is a new deal, and it was supposed to fall off if ZESA had not paid by the end of July.
So ZESA managed to pay, and this is a prepaid facility where ZESA has been able to pay the US$6.4million that was required, and we started receiving electricity from Zambia by the 1st of August and we think this will continue going forward.
All other facilities are still on, we have a facility with EDM of Mozambique, HCB, as well as ESKOM, are still on and we will continue to get electricity.
Zimbabwe is battling electricity shortages caused by the loss of a generation unit at Kariba Hydro Power Station, its most reliable power plant, as well as frequent breakdowns at its co-fired ageing Hwange Power Station.