Zimbabwe’s power utility Zesa Holdings will receive $132 million in loans and grants from the African Development Bank (AfDB) and the Development Bank of Southern Africa (SADB) for infrastructure rehabilitation pending approval of repayment conditions.
Zesa has been struggling with power shortages which have resulted in load shedding after a major breakdown at Hwange Power Station. The infusion is expected to help refurbish the Hwange. "Three out of six power generating units at the power station, which has a capacity to generate 750 MW, have been repaired and the other three would be operating before the end of March," Zesa CEO Ben Rafemoyo said.
However, previously brokered deals would lead to the question as to why more capital is required for the Hwange? In August 2008 Zesa announced that it had entered into a deal worth $15 million to repair units five and six units at the power station (Zesa to Boost Capacity at Hwange). Namibia’s Power Co. had partnered with Zesa for a $50 million inter-utility deal that refurbished units one to four (Zesa Refurbishing Units Five and Six at Hwange). Therefore, if all units were refurbished in deals made in 2008, why is Rafemoyo now saying that three more unit refurbishments need to be financed? Were previous estimates inaccurate to complete the necessary renovations?
Zesa Holdings recently announced that it has had to abandon its published load-shedding schedules because of acute power shortages. The power utility started switching off power to customers who have failed to settle their bills with more than 500 houses in Harare’s high-density suburbs being left in the dark.
Zimbabwe is currently relying on the Kariba Hydro-electric Power Station, which is generating power at full capacity.
The country is also importing electricity from Mozambique, Zambia, South Africa, and the Democratic Republic of Congo.
Zimbabwe needs 2,000 MW, but currently generates below 1,000 MW while three small thermal power stations at Harare, Munyati and Bulawayo need $150 million to become fully operational again.
For further information, also read:
Hwange Thermal Power Station Re-commissioning Delayed Thursday, January 3, 2008
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