ZESA expedites Mozambique power projects
PHILLIMON MHLANGA
Power utility ZESA Holdings is stepping up efforts to construct hydroelectric power plants in Mozambique, a move which could help alleviate an electricity crunch in Zimbabwe, it has been learnt.
Business Times first reported in November last year that ZESA had submitted a bid to build a Hydropower plant in Mozambique.
But, economist Eddie Cross, who is involved in the deal, told delegates at the CEO Africa Roundtable meeting last Friday that ZESA consultant, Cletus Nyachowe, last week led a team from the State-owned power utility and the private sector to Mozambique where project agreements were signed.
He said the private sector will help bankroll the proposed projects, expected to kick off next year.
According to Cross, the United States based contractor, WeBuild will do the dam construction. But, other contractors will be selected for the construction of power plants.
“We were in Mozambique on Monday (last week) as private sector and ZESA signing deals for power projects. Cletus Nyachowe of ZESA is the leader of the team. Indications are that contractors will be on site third quarter of 2024. The contractors will be shortlisted in March, then selection of the successful contractor and financial closure in the first quarter of 2024,” Cross said.
He added: “The entire project has four sites on the lower Zambezi. So, we want to build North Bank of Cahora Basa, which is 1 200 megawatts (MW) and Mpanda Nkuwa, which is 60km south of Cabora Bassa, which could be 2 4MW. Then there are two sites in the Zambezi basin in Tete Province, 1 000MW each. So, altogether its about 5 00MW. The projects will cost about US$5bn to complete. Then we are going to put US$1.4bn on new transmission lines. “
Efforts to get a comment from ZESA were futile.
The development comes at a time when Zimbabwe is battling worsening power crisis due to low local production.
ZESA is generating about 1 000MW against a national demand of 1 850MW daily.
To cover for the shortfall, State-owned power utility, ZESA, imports from South Africa’s power utility Eskom, Hydro Cahora Bassa of Mozambique, and from Zambia.
However, Zimbabwe is not getting adequate imports as ZESA entered into non-firm contracts with the regional power utilities, meaning they can only supply electricity if they have surplus.
The situation has been worsened by the fact that most of the regional power utilities in the region are also suffering from electricity insufficiency, making it difficult for them to supply Zimbabwe.
Consequently, ZESA is implementing crippling power cuts during peak hours, where production is expected to be at its highest, threatening the economic prospects.
Load shedding has forced most businesses to resort to using backup diesel generators, which are expensive to run.
