PHILLIMON MHLANGA
Power utility ZESA Holdings has secured up to 150 megawatts (MW) from Electricidade de Mozambique (EDM), a development which is expected to ease the ongoing rolling power outages, Business Times has learnt.
Zimbabwe generates about 1,000MW, but requires about 1,800MW at peak periods. To cover for the shortfall, Zimbabwe imports from regional power utilities, especially from Eskom of South Africa and Mozambique’s Hydro Cahora Bassa, which operates the Cahora Bassa dam on the Zambezi River.
The latest power deal is separate from the 50MW that ZESA has been procuring from Hydro Cahora Bassa.
Well-placed government sources told this publication this week that EDM, ZESA and the Zimbabwe government agreed to a deal which would see Mozambique’s power outfit supply Zimbabwe with 50MW on a firm basis contract. This is guaranteed. And the balance will be supplied on a non-firm contract basis, meaning EDM will only supply Zimbabwe when it has a surplus.
Business Times can report that an agreement was signed in Maputo last week between EDM chairman Ali Sicola and ZESA acting CEO Patrick Chivaura.
It is understood that the contract will be valid for two years, which could be renewed depending on Zimbabwe’s needs and capacity to pay. It is also understood that ZESA will pay about US$4m a month for the 50MW. However, according to our sources, the EDM supplies to Zimbabwe will begin next month.
All efforts to get an official comment from Energy and Power Development Minister, Fortune Chasi, and permanent secretary Gloria Magombo were futile as their mobile numbers were unreachable yesterday. Chivaura was also not reachable for comment.
However, several impeccable sources told Business Times yesterday that Chasi, Magombo, other senior ministry and top ZESA officials were in Mozambique to finalise the deal.
Rolling power cuts, which last for18 hours, have held the economy back even as it grapples with foreign currency shortages.
Last month, ZESA entered into a power deal with Eskom of South Africa to access about 400MW. But Zimbabwe is getting only 50MW on a firm basis contract at a costly price of US$0.28 per kilowatt hour. Eskom can supply Zimbabwe more if it has a surplus.
