Commercial Farmers Union of Zimbabwe

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ZESA

Zimplats lends ZESA US$25 million

Zimplats lends ZESA US$25 million

http://www.newzimbabwe.com

04/08/2012 00:00:00
by Roman Moyo

PLATINUM miner, Zimplats advanced a US$25 million loan to ZESA which the 
power utility used to reduce its indebtedness to Mozambique’s Hidroelectrica 
de Cahora Bassa, enabling the resumption of power imports.

The Mozambican company had cut supplies to Zimbabwe after ZESA failed to 
reduce its mounting debt but the facility extended by Zimplats would enable 
power imports to resume.
Zimplats said, in return, ZESA would guarantee power supplies to its 
operations for three years.

“During the quarter, Zimbabwe Platinum Mines (Private) Limited advanced a 
$25 million loan to the power utility ZESA which was used to reduce the 
utility's overdue indebtedness to Hidroelectrica de Cahora Bassa of 
Mozambique in respect of power imports,” the company said in its latest 
financial report.

“The loan facility enabled Zimbabwe to resume power imports from Mozambique 
to augment the country's constrained power generation.

“The loan principal and interest were converted into power units which will 
be redeemed over three years. In return, Zimplats is guaranteed 
uninterrupted power supplies for its operations for five years.

Meanwhile Zimplats posted a 52% drop in operating profit in the fourth 
quarter to June, due to weaker platinum group metal prices.

The company said operating profit was $25m, down from $52m in the previous 
quarter as metal prices were depressed during the period while operating 
costs rose 17%, in line with higher sales volumes.

“Operating costs were 17% above previous quarter in line with the higher 
sales volume. In addition, the first tranche of $3.3 million was paid to the 
Community Share Ownership Trust in terms of an undertaking to make available 
to the trust, $10 million over a three year period,” the company said.

“Royalties continue to be accounted for at the higher rates set in terms of 
the Finance Act whilst the company awaits resolution of the dispute which is 
currently before the courts. As a result of the above, operating profit 
amounted to $25 million, 52% lower than the previous quarter.”

Zimplats, which is 87% controlled by Implats , said in March it had agreed 
to a deal that would see it comply with Zimbabwe’s requirement that 51% of 
shares in Zimplats be held by locals.
The firm said it was in discussions with the government over the 
implementation of the ownership agreement.

“A Joint Technical Committee comprising Government of Zimbabwe 
representatives and management has been set up to work through material 
issues pertaining to the agreement. Discussions are on-going and 
shareholders will be updated on major developments," the company said. 

Zimbabwe power cuts to persist for 10 years: official

Zimbabwe power cuts to persist for 10 years: official



(AFP) – 6 hours ago

NYANGA, Zimbabwe — Energy-starved Zimbabwe will suffer longer and more 
frequent power shortages for the next 10 years, a senior official said 
Friday.

The country's power utility will extend blackouts until it can boost 
capacity, Patson Mbiriri, secretary for energy and power development, told 
an annual congress of the Confederation of Zimbabwe Industries.

"By 2022 that's when we will be able to generate enough power for domestic 
and industrial power," Mbiriri said.

Zimbabwe needs about 2,200 megawatts of electricity at peak consumption but 
generates just below 1,300 megawatts, while relying on imports to fill the 
gap.

Due to ageing equipment, power generation is often disrupted following 
breakdowns. In most cases, the generators operate below capacity.

In recent months, Zimbabwe could only afford to import 25 megawatts from 
nearby countries after major electricity suppliers in the region turned off 
the switches over non-payment of dues.

"Most of our woes in terms of blackouts will end in 2015," Mbiriri said.

Energy Minister Elton Mangoma recently said Zimbabwe has whittled its debt 
to power providers to under $20 million from around $100 million in a bid to 
resume imports.

There are plans to revamp the northern Kariba hydro-power station and the 
Hwange thermal power station in the west of the country. 

Power cuts hit mobile operators

Power cuts hit mobile operators

http://www.thestandard.co.zw

Saturday, 21 July 2012 19:00

BY MOSES CHIBAYA
MOBILE operators say the use of generators to run base stations during power 
cuts had increased operational costs, affecting their profit margins.
The country is experiencing debilitating power cuts as demand has 
outstripped the generation capacity. The power utility is generating 1 100MW 
against the required 2 200MW.

Giving oral evidence before the Parliamentary Portfolio Committee on Media, 
Information and Communication Technology last week, Econet CEO, Douglas 
Mboweni, said the US$0,20c per minute tariff offered was arrived at after 
factoring in all the costs involved. Mboweni said the major cost that was 
driving their tariff up was fuel, used to run generators.

“Electricity is a huge cost to us, the cost of generators and the cost of 
refilling is estimated at over US$15 million per year,” Mboweni said.

The Econet boss said about 72% of the network at any given time would be 
running on generators.

In a separate presentation interview before the same committee, Telecel 
chief executive officer, Francis Mawindi, concurred with Mboweni and also 
bemoaned electricity woes as the major barrier.

ZESA employees suspended over salary fight

ZESA employees suspended over salary fight

http://www.swradioafrica.com/

By Alex Bell
17 July 2012

More than 130 employees at the national power supply authority ZESA, have 
been suspended, after threatening to strike last week over the utility’s 
failure to award pay rises.

The Zimbabwe Energy Workers’ Union (ZEWU) a week ago issued an ultimatum to 
ZESA and other private players, to either meet their demands or face a 
nationwide strike. The workers want the salary increase that was meant to be 
awarded to them after a legal dispute in June.

ZEWU President Angeline Chitambo told journalists in Harare last week the 
Union grouping had resolved to embark on the strike, accusing ZESA chief 
executive Josh Chifamba of not honouring an arbitration order from last 
month. The order promised a new salary structure would be awarded to the 
energy sector on June 18th.

But instead of honouring the order, ZESA has suspended 132 employees without 
pay or benefits. The Progressive Teachers Union of Zimbabwe (PTUZ), which 
voiced solidarity with the energy workers, said: “Such a primitive and 
barbaric way of handling labour disputes, reminiscent of the colonial era, 
must be condemned with the contempt it deserves. We want to reiterate that 
these workers have a legitimate expectation which must be respected both as 
citizens and workers,” the PTUZ said. 

Ministerial statement on power crisis

Ministerial statement on power crisis

http://www.newzimbabwe.com

13/07/2012 00:00:00
by Hon. Elton Mangoma

Ministerial Statement by Energy Minister Elton Mangoma to the House of 
Assembly on measures being taken by the government to ease the country’s 
power crisis. Delivered on Thursday, July 12, 2012:

Mr Speaker Sir, I have found it necessary to brief this House of elected 
representatives on what we are doing in the Ministry to ease power outages 
in the country.

Zimbabweans across the country and in all spheres; from housewives to 
business people, have a sad story to tell about the power cuts they 
experience every day in their homes and in the factories.

Mr Speaker Sir, it is the duty of government to explain the measures we are 
taking to alleviate the plight of the people. The solution might not come 
tomorrow, but the people of Zimbabwe deserve to know that we are working 
flat out to mitigate the situation which deteriorated way back due to 
non-investment in this critical sector. There was no way we could resolve in 
three years a decay process that began decades ago.
Nevertheless, I rise to make public our efforts in redressing this national 
challenge.

It is a challenge that has affected a cross section of people from the big 
corporates in Harare and Bulawayo to clinics and health centres in 
Chendambuya and Gokwe; from schools in Filabusi to the ordinary power 
consumers in Budiriro and Pumula.

Mr Speaker Sir, it is no laughing matter; but they say the most popular 
words in Zimbabwe are “Magetsi auya”. As government and as a Ministry, we 
are aware of the mammoth task before us and we want to assure you that we 
will discharge of our national duty to the best of our ability.

The power supply in the country is inadequate leading to massive load 
shedding in all the sectors. This is on the backdrop of:
# No new generation capacity having been created in the country since 1984.

# A serious shortage of capacity in the region because of increased demand 
in their countries coupled with no new investment.

# Lack of maintenance, particularly from 1998 to 2009 leading to serious 
degeneration of both Generation and Transmission and Distribution 
infrastructure.

# Low and unviable tariff over the past decade (some correction made in 
2011).

# Low funding from Treasury and high level of debtors.

# The economic revival has put pressure on the demand for electricity and 
particularly on domestic consumers, who had absorbed the electricity that 
was available from Industry and Mining.
MEASURES BEING TAKEN

The measures being taken are divided into Generation capacity and supply 
side activities, Demand Side Management and Institutional changes. All these 
will work towards alleviating load shedding and increasing the power for 
enhanced economic activities. The supply side is further split into short, 
medium and long term measures.
GENERATION CAPACITY AND SUPPLY SIDE ACTIVITIES

Short term (900MW)

Optimisation of Hwange Power Station (250MW)

Mr Speaker Sir, Hwange Power Station has an installed capacity of 950MW. It 
however has been producing between 300 to 500 MW. This is a result of poor 
maintenance, and lack of alignment of the production facility.

For example, the stage two turbines (generations) have a capacity to 
generate 220MW each, but the boilers are such that you can generate around 
150MW. Improving the boilers can increase the capacity to 200MW each. Work 
to identify what needs to be done is underway.

Poor maintenance management is exemplified by the current saga on units one 
and two where we had the rotors down and management concentrated on getting 
them fixed without attending to ancillary equipment at the same time. Now 
the rotors have been repaired, but work on the stator only commenced last 
month. Measures are being put in place to avoid such sloppiness including 
skills enhancement and greater team work.
Repowering Small Thermals (120MW)

All the small thermals can produce, with constant coal supply 200MW, 
compared to the current 60-80MW. Short term coal supplies can be increased 
by more cooperation and minimal investment at Hwange Colliery Company (HCC), 
so that they produce the required type of coal.

Immediate steps are being taken to modify the boilers, so that they can use 
the same thermal coal as Hwange Power Station. This is an 18-month 
programme. ESSAR will lease Munyati Power Station and they have indicated 
that they can make it produce 140MW.
Gairezi Hydro (30MW)

ZPC has applied for a licence to construct the Gairezi hydro scheme. This is 
estimated to cost $90 million and the project will take 18-24 months. The 
licence will be issued this month and finances are being arranged. It will 
be necessary to work with OPC to avoid the delays of the State Procurement 
Board (SPB).
Lupane Coal Bed Methane (500MW)

Mr Speaker Sir, there is need to map and determine what resource there is in 
Lupane. This is then followed with the construction of a gas fired plant in 
Lupane. The first phase involves the drilling of exploratory wells. As soon 
as these wells are drilled, instead of closing the wells or flaring the gas, 
the gas will be directed to a series of machines that generate between 
5-10MW. These machines will be hired from Agreko. It becomes possible to 
generate electricity almost immediately after the wells are drilled.

After mapping and determination, a mining plan is then determined. The 
mining plan is then executed taking into consideration the level of resource 
and what it will be used for. The current proposed uses are electricity 
generation and fertilizer production.

Mining can start immediately after resource mapping with the gas from the 
mining wells also being directed to more hired machines. This term is called 
Temporary Generation. These will only be removed after the commissioning of 
the Permanent Plant.

There are three parties already interested in the resource mapping and 
determination phase, who will do it on behalf of ZPC. Funding has already 
been secured for this phase.
Solar Into Grid (100MW)

The main thing that makes solar technology more expensive is the need to 
produce and store during the day for use at night, when you cannot produce. 
The current situation is that electricity is short during the day so there 
is no need to produce and store. Generating without storing will bring the 
tariff to between 10c-12ckwh, which is within the current tariff structure.
Solar plants can be put up very quickly. Current discussions are centering 
on:
# Should this be one plant or a number of them.

# Signing of Power Purchase Agreement (PPA) to buy all the power produced 
for a fixed period (consideration between 5-10 years).
The main issue is acceptability of Zimbabwe Electricity Transmission and 
Distribution Company as a party to the PPA.

Solar Panels on Homes

Mr Speaker Sir, we have currently agreed with a housing cooperative in 
Mutare that they put solar panels as part of their roofs. The electricity so 
generated will be used within their homes and the surplus fed into the grid. 
At night the homes will then be supplied by ZESA. At the end of the month, 
the account will then be settled depending on the power produced and 
consumed. The flow of electricity will be measured using a Reverse Meter.

This policy can be extended to anyone although it may be more applicable to 
new housing complexes as the panels will be part of the cost of the roof, 
and therefore no extra investment required.
Solar Lamps

There is a programme under Rural Electrification Agency (REA) to produce 
solar lamps locally targeted to retail at $10 or less. REA is working with 
local industry to make sure there is significant value addition in this 
project. It will then lead to localisation of technology and job creation. 
Designs are at an advanced stage.

Treasury has provided $1,5m to this project, which will enable particularly 
school children to buy these lamps in instalments. The lamps are earmarked 
for rural schools. The involvement of industry means that a lot more solar 
lamps can be produced for commercial purposes to be made available to the 
generality of the public. These solar lamps are a good source of lighting 
when the electricity goes out.
Imports

Mr Speaker Sir, Zimbabwe used to import as much as 500MW firm power from 
SNEL, EDM, HCB and ZESCO. At the moment the only firm power is 100MW from 
HCB. The demand for electricity within the region has been growing, to a 
point now where whatever can be produced is utilised. The likely immediate 
source of imports is EDC and HCB. Negotiations are underway.

Botswana is likely to commission a power plant soon. EDM is being persuaded 
to export to us the power (50MW) they are currently exporting to Botswana.
Zambia is likely to commission Kariba North expansion next year and dialogue 
is taking place now.

Mozambique is planning to do Temporary Generation at their Southern Gas 
fields and this will add additional generation. We have registered our 
interest. Payments done to reduce our debt make us worth considering.
DEMAND SIDE MANAGEMENT

Prepaid Meters

The tender board awarded tenders to:

# Solahart Zimbabwe (Pvt) Ltd (Zim)

# Nyamezela Consulting Engineers cc (RSA)

# ZTE Corporation (China)

# Finmark Marketing (Pvt) Ltd (Zim)

These tenders exclude Harare and Bulawayo, which are the two places with the 
greatest need. The tenders are for supply and fix. Contracts signed are to 
ensure that those who quickly install their meters are allowed to install 
additional ones so as to roll out as quickly as possible and not be held by 
laggards purely on the basis that they won a tender. It is proposed to use 
the same tender winners on the same performance basis for Harare and 
Bulawayo.

The roll out is expected to start next month (June 2012) and be completed 
within 10 months. The current prepaid meter platform is being upgraded to 
handle different types and increased number of meters.
Prepaid Meter Platform Tender

Mr Speaker Sir, a tender was floated, adjudicated and awarded to REVMA. The 
adjudication process was fraudulent. All other tenderers who proposed 
external hosting were disqualified as it was a specific requirement that the 
platform be based at ZETDC. The adjudicators knew but presented REVMA as a 
direct supplier until the contract signing stage when REVMA wanted to be 
paid 60 cents per transaction.

Discussions with State Procurement Board (SPB) indicated that REVMA had not 
misrepresented their position, but that the adjudicators had falsely 
misrepresented the facts. As a result SPB could not reverse their award. The 
only recourse is for ZETDC to approach the Administrative Court for the 
nullification. ZETDC has now been directed to approach the court. Any award 
must now be based on those who show on the ground that they have a system 
that works.
Compact Florescent Lamps (CFLs)

The contract for the supply of CFLs has finally been signed (21/05/12). It 
is hoped that the first batch of one million lamps will be delivered on 30 
June 2012. Installation of the lamps will commence around mid-July.

The installation of the 5,5 million lamps, estimated to be completed by 
October 2012, will save evening peak electricity equivalent to 180MW.
Biogas

Mr Speaker Sir, biogas is a sustainable, environmentally friendly source of 
energy. It is mostly used for heating and cooking purposes, and thereby 
releasing electricity for other purposes. A Zambian expert has been engaged 
for the purposes of technology transfer through the construction of 
prototype digesters. Three sites that have been identified are:
# Mbare Musika – Vegetable market

# Harare Hospital

# Roosevelt Girls High School

There is need to identify two other users covering:

# Farm environment

# Domestic dwelling

The work on all these prototypes is expected to commence in June.

Local constructors are expected to gain knowledge and insight into the 
construction for future propagation. Treasury budgeted $1,5 million for this 
purpose. The funds are sufficient to cover other educational and health 
institutions in all the provinces. REA is the implementation agent.

The residue after the gas has been used is very good organic fertilizer. 
Local industry is being involved in the manufacture/adaptation of gas 
stoves. The cooking system at Harare Hospital will be completely revamped.
MEDIUM TERM

Hwange and Kariba Expansion Projects (900 MW)

Hwange (600MW) and Kariba (300MW) expansion projects are currently being 
tendered for. The tenders are due to close on June 5, 2012. (Been advised 
SPB moved closing date to July 3, 2012). There are now four (4) tenderers 
for each project. The main issues to be considered are:

# The availability of funding to carryout projects. An alternative plan to 
fund Kariba South expansion has reached an advance stage.
# The technology to be used to create the cavity at Kariba – the type of 
blasting/drilling – due to the weak rock formation.

# The Ministry of Finance had written advising abandoning the tender process 
at Kariba in favour of Sino hydro, following the agreement they signed with 
China. It is recommended to carry through with the tender as scrapping it 
now could cause legal complications and further delay the project.
The projects are expected to take around 48 months.

Hwange-Western Areas (1000MW)

Mr Speaker Sir, this is a new project that will result in the construction 
of a coal fired power station in the Western Areas Coal fields. The Western 
areas coal fields concession was granted to ZPC by Cabinet in July 2010 for 
the purposes of attracting investors into power generation.
Promising negotiations are underway with China Railways International (CRI). 
The main issues are:

# That the power plant will belong to ZPC 100%

# That a mining venture is formed between ZPC and CRI

# CRI will operate the power plant for the benefit of ZPC until the loan has 
been repaid

It is estimated that the power plant will take around 3-4 years to 
construct, after a 6-12 month period of surveying and designing.
Independent Power Producers (IPPs)

A number of IPPs have been licensed. The three big projects are Sengwa 
(2400MW) Lusulu(2000MW) and ESSAR (600MW).

LONG TERM

Bindura Gas Plant (2200MW)

Mozambique has discovered vast natural gas quantities in the Rovuma Basin. 
We have expressed our interest to have access to the natural gas.

The idea is to pipe the gas from Rovuma Basin, through the bridge at Tete to 
Bindura. A gas fired power station is then constructed in Bindura and feed 
into the Bindura-Songo transmission lines (This is similar to what Ghana has 
done with the Nigerian Gas).

The gas pipeline then extends to Harare, where it will be piped to the 
residential areas for cooking purposes, (like in most of the developed 
countries). This whole plan can be replaced by the Lupane CBM depending on 
the quantum of the resource.
Batoka (800MW)

Mr Speaker Sir, Zambia and Zimbabwe agreed on February 10, 2012, to embark 
on the Batoka hydro project with a total capacity of 1600-2000MW. It was 
agreed to proceed on a BOT basis under the leadership of the Zambezi River 
Authority (ZRA). Zimbabwe agreed to pay Zambia $70.8million for the CAPCO 
assets. $10m has since been paid. Interest has been agreed at $114 million 
and there is no repayment plan. Zimbabwe has already asked Zambia for 
interest not to be paid.

A detailed geological survey was done in 1994. It may be necessary to carry 
out some confirmatory geological survey, together with an Environmental 
Impact Assessment.

It is envisaged that the ZRA in consultation with the two countries will 
finalise the BOT framework soon so that they call for interested parties to 
put forward their proposals. The main issues to be considered are the legal 
and commercial issues and leave room for the interested parties to compete 
on issues like design and technology.
The Great Inga

The Great Inga hydro project is proposed on the Congo River in the DRC. This 
can produce upwards of 40,000MW. This project is too big for the DRC and 
requires a regional approach. If this is constructed it will change the 
economic fortunes of the region. It requires strong leadership and project 
design skills to make all the political leaders comfortable with the 
project. Hydro power is cheap and it is worth the time spent on promoting 
it.
OTHER INSTITUTIONAL ISSUES

Funding

Mr Speaker Sir, the funding of ZESA by Treasury has been minimal, despite 
the provisions that have been made in the budget. A verbal agreement has 
been reached with the Minister of Finance to deduct the subsidy to Sable 
Chemicals and Government’s indebtedness to ZESA against the funds paid by 
Treasury.

The Zimfund promised some $30m as urgent intervention. This money was paid 
in by the Donor countries almost a year ago. No disbursements have been made 
yet.
Restructuring of ZESA

Mr Speaker Sir, it is proposed to restructure ZESA to make it more efficient 
and responsive to the consumers, whilst at the same time, setting up a 
mechanism, which will make it easy for Independent Power Producers have a 
level playing field.

ZESA Holdings was supposed to be only an instrument of holding shares in the 
successor companies. Instead it morphed into a huge bureaucracy negating the 
very point of establishing successor companies. In 2002 the Transmission 
business was legislated to be separate from distribution, only to be 
reversed later.
It is proposed that:

# ZESA Holdings be collapsed into a National Grid Services Company (NGSC) 
and move all the legacy debts to this company. It will be 100% Government 
owned and it will not be privatised. NGSC will be responsible for 
Transmission, Market and Systems Operation. It will have the “reserve 
supply” responsibility.
# ZETDC will transform to Zimbabwe Distribution Company (ZDC) and be 
responsible for Distribution of Electricity.

# Each of the companies will have a separate Board which will report 
directly to the shareholder.

These companies will be:

# Zimbabwe Power Company (ZPC)

# Zimbabwe Distribution Company (ZDC)

# National Grid Services Company (NGSC)

# ZESA Enterprises (Pvt) Ltd (ZENT)

# Powertel

Establishing an Electricity Industry

Almost 90% of all the spares and services to ZESA are from outside our 
borders. There is no doubt that the engineering capacity at Independence was 
so high and yet we are not reviving it. Local content of Hwange Power 
Station was over 50%.

ZESA has been a major consumer and the spending power it has can be used as 
a catalyst for the revival of the local electricity industry. On top of 
this, our own engineers have excelled in the region and beyond.

Mr Speaker Sir, this requires deliberate targeting and formation of 
partnerships. ZENT has been improving its manufacturing capacity, for 
example, they now can produce 500 transformers per month. We can therefore 
not allow transformers from outside at the expense of knocking out this 
capacity.

In the same vein, ZPC organised a workshop with the local industry so that 
they can hold each other’s hands as they build the industry together. This 
requires flexibility in the rules of the SPB.

The projects listed under IPP indicate that even if a quarter of them are 
realised, it is a lot of work. This is the time to ensure that the capacity 
is here to tap and localise the investment resource whilst at the same time 
creating the much needed jobs.

Creating local capacity will also reduce the time it takes to carryout 
repairs. For instance, generator 3 at Harare Power Station has been out for 
more than a year, with the rotor alignment waiting for its turn in South 
Africa. We need to empower our people by making them partners in the supply 
of services and spares.
POLICY DOCUMENT LAUNCH

In early 2010, Cabinet approved the Energy Policy document. Over this period 
series of workshops have been held with stakeholders in order to refine the 
policy and prepare for implementation. The product of those consultations 
has been completed, thanks to the assistance by UNDP.
It is planned to launch the document in July.

Mr Speaker Sir, I wish to assure the House that we are aware of the plight 
facing the people of Zimbabwe. We share with them the grief and misery of 
not having a reliable power supply.

I pledge to be making these ministerial statements to update the public on 
the progress in instituting these measures. We owe it to the people of 
Zimbabwe.
I Thank You!

Zimbabwe says power debt down to under $20 mn

Zimbabwe says power debt down to under $20 mn

http://www.timeslive.co.za/

Sapa-AFP | 12 July, 2012 20:30

Energy-starved Zimbabwe has cut its debt to power providers to under US$20 
million from around $100 million in a bid to resume imports after major 
regional suppliers cut it off, the energy minister said Thursday.

"We have currently made strides to pay the debt we owed and our total debt 
has now been reduced to below $20 million from nearly a $100 million," 
Energy Minister Elton Mangoma told parliament.

He said talks have begun with neighbours Mozambique and Zambia to get "a 
little bit more" electricity after reducing the debt.

In recent months, Zimbabwe could only afford to import 25 megawatts from 
neighbouring countries after major electricity suppliers in the region cut 
off supplies for non-payment.

Zimbabwe needs about 2,200 MW of electricity at peak consumption but 
generates just below 1,300 MW.

"Zimbabwe used to import as much as 500 MW from SNEL in DR Congo, EDM and 
HCB in Mozambique and ZESCO in Zambia," he said adding the average quantity 
had came down to 100 MW.

"Because we were not paying, even that 100MW has been reduced to 25MW."

Mangoma said the country is working on refurbishing its northern Kariba 
hydro-power station and the Hwange thermal power station in the west of the 
country to boost generation capacity.

The minister said earlier this year that the power utility Zimbabwe 
Electricity Supply Authority (ZESA) is owed $400 million in unpaid 
electricity bills by consumers.

Authorities also increased energy charges last year by 31 percent to 9.83 
cents per kilowatt hour. 

Zimbabwe in talks with Chinese firm on power plant

Zimbabwe in talks with Chinese firm on power plant

http://af.reuters.com

Thu Jul 12, 2012 5:09pm GMT

Print | Single Page
[-] Text [+]

By Nelson Banya

HARARE, July 12 (Reuters) - Zimbabwe's government is in talks with China 
Railway International over plans to build a 1,000 megawatt coal-fired power 
plant to ease the southern African country's electricity shortages, its 
energy minister said on Thursday.

Zimbabwe's ageing plants produce around 1,000 MW, half of its peak demand, a 
power supply deficit which has paralysed mines and industry.

Energy Minister Elton Mangoma said Zimbabwe was considering several options 
to expand output at existing facilities, while pursuing new projects, 
including the Western Areas coal project in Hwange where a 1,000 MW thermal 
plant is planned.

In a statement to parliament, Mangoma said state-owned Zimbabwe Power Co 
(ZPC) was in talks with China Railway International, a subsidiary of China 
Railway Group, to jointly run a coal mine that would supply the proposed 
plant.

"Promising negotiations are underway with China Railway International," 
Mangoma said. He did not say how much the project would cost, but said the 
plant would take between three and four years to finish.

Zimbabwe has short-listed bids for the expansion of its Hwange thermal 
station and the Kariba hydro-plant to boost their combined output by 900 MW.

Independent power producers with projects that have the potential to 
generate a total of 5,000 MW have been licensed but are yet to start work.

However, analysts say Zimbabwe is unlikely to attract significant foreign 
investment due to President Robert Mugabe's drive to force foreign firms, 
including mines and banks, to turn over 51 percent shareholdings to locals 
under an empowerment law. 

ZESA audit reveals massive corruption

ZESA audit reveals massive corruption

http://www.thezimbabwean.co.uk/

An internal Zimbabwe Electricity Supply Authority investigation has 
unearthed rampant corruption involving officials tampering with accounts.
11.07.1209:30am

by Criswell Chisango

The investigation, codenamed Operation Dandemutande (Cobweb), started in 
April and has revealed that ZESA officers are deleting accounts with debts 
and replacing them with new ones that show no money is owing. A report in 
the hands of The Zimbabwean says the officials colluded with account holders 
who paid them in cash or kind to destroy their bills.

A memo dated April 15 from an investigating team covering Karoi, Kariba and 
Mhangura in Mashonaland West province and addressed to the Field Commander 
of the area gives insight into this massive scam thought to be common in all 
parts of the country.

The Dandemutande audit, commissioned by Energy Minister Elton Mangoma, 
targeted unauthorised rural and urban power connections, illegal substations 
and subcontractors.

According to a document compiled after the investigations, some of the 
officials alleged to have abused their authority are now on forced leave. 
The findings reveal that some of them received bribes for as little as $4 to 
cancel the debts that had accumulated.

Other officials accepted bribes running into thousands of dollars, and in 
some cases demanded sex from defaulting clients.

Karoi was described as a ‘’haven of corrupt (ZEDTC) workers’’, where 
investigators said, customers implicated a ZEDTC worker who was being paid 
amounts ranging from $10 to $20 for ‘‘burying accounts’’.

The same employee also received thousands of dollars from clients with huge 
bills. He used the Change of Tenancy facility to re-open new accounts that 
had been closed.

The investigators’ report said an account with a debt of $2,682.11 was 
‘‘buried’’ and reopened in the official’s name, adding that, at one time, 
the corrupt official demanded a beast from a client who owed $984.90.

Officials also accepted bribes running into thousands of dollars, received 
cattle and in some cases demanded sex from defaulting clients.

In one case, a house was being reconnected every month, with the user paying 
the corrupt meter readers amounts ranging from $10 - $20.

Only the senior meter reader has been sent on forced leave, and it was not 
clear at the time of going to print why no action had been taken against the 
other offenders.

Inside sources revealed that the power utility had not instituted legal 
action against the offenders from Mashonaland West.

A senior Zesa official working at the Chitungwiza offices confided to The 
Zimbabwean that cases of ‘’burying’’ accounts were rampant.

‘‘What you have heard about in Mashonaland Central is nothing compared to 
Harare and Chitungwiza,’’ he said. ‘‘Here, people are buying cars and houses 
using the bribes they get. Senior employees are involved.’’

He added that Zesa employees had become cautious after learning about 
Dandemutande. Questions sent to the Zesa spokesperson Fullard Gwasira, had 
not been responded to at the time of going to print.

Energy workers threaten national blackout over salary dispute

Energy workers threaten national blackout over salary dispute

http://www.swradioafrica.com/

By Alex Bell
10 July 2012

Workers from Zimbabwe’s energy sector have threatened to pull the plug on 
the country’s power supply by Thursday, if their demands in an ongoing 
salary dispute are not met.

The Zimbabwe Energy Workers’ Union (ZEWU) on Monday issued a 72-hour 
ultimatum to the national power provider ZESA and other private players, to 
either meet their demands or face a nationwide strike. The workers want the 
salary increase that was meant to be awarded to them after a legal dispute 
in June.

ZEWU president Angeline Chitambo told journalists in Harare on Monday that 
the Union grouping had resolved to embark on the strike, accusing ZESA chief 
executive Josh Chifamba of not honouring an arbitration order from last 
month. The order promised a new salary structure would be awarded to the 
energy sector on June 18th.

“We have given Chifamba 72 hours to respond to our management in a 
meaningful engagement and people should not be surprised if they wake up 
without electricity,” Chitambo said.

Chitambo added: “We have written so many letters and I don’t think this 
blackout is going to be news to Chifamba. It will only be news to him if he 
takes us for granted.”

ZEWU is an umbrella body representing workers from ZESA, the Rural 
Electrification Agency, Petrotrade, the National Oil Infrastructure Company, 
Green Fuels, Powertel, the Zimbabwe Electricity Transmission and 
Distribution Company, the Zimbabwe Power Company, Petrozim Lime, the Zambezi 
River Authority and a Mozambican energy firm, CPMZ.

The threat comes as Zimbabwe continues to face power supply problems, with 
the financially troubled ZESA unable to meet the countrywide demand for 
power. Power cuts and load shedding are now a widely expected norm, and ZESA 
has faced serious criticism for its service deliver failures.

Most recently, the power utility was criticised for its decision to carry on 
providing estimated bills to energy users, despite its unreliable service. 
ZESA has argued that it does not have the money to pay for meter readers. 

Hwange thermal on stream next year

Hwange thermal on stream next year

http://www.theindependent.co.zw/

Thursday, 05 July 2012 16:54

Gamma Mudarikiri

THE rehabilitation of Hwange thermal power station is set for completion by 
end of 2013 and this should significantly address erratic power supply in 
the country, incoming permanent secretary in the Ministry of Energy and 
Power Development Patterson Mbiriri said this week.
The on-going rehabilitation of the project, which started in 2007, is 
expected to lift power output to 700MW by August this year from the current 
500MW, after the completion of repair to Units 1 and 2 of Hwange power 
station.

Mbiriri said treasury had so far injected more than US$50 million, with 
Zimbabwe Power Company (ZPC) pumping US$40 million into the project.
Part of the project to repair the ash and handling plant at a cost of US$35 
million was being financed by the Zimbabwe Multi-Donor Trust Fund (Zimfund) 
and was also expected to be complete by 2013.

The EU-sponsored fund is administered by Africa Development Bank (AfDB), 
with ZPC as the implementing agent.

AfDB is also administering under Zimfund, an urgent water supply and 
sanitation rehabilitation project for the municipalities of Harare, 
Chitungwiza, Mutare, Masvingo, Kwekwe and Chegutu in line with the 
government’s Short-Term Emergency Recovery Programme (Sterp).

Mbiriri said in order to address the erratic power supply holistically, the 
ministry would have to focus more on the transmission and distribution grid.
However, this would be a challenge, given the archaic primary equipment 
available, he said.

“A lot of primary equipment is very old and urgently needs to be 
refurbished,” Mbiriri said. “Key equipment such as reactors are out of 
service due to their old age as most of these were installed in the 1960s.”

Zimbabwe Electricity Transmission and Distribution Company is also set to 
embark on a roll-out programme to install 5,5 million compact fluorescent 
lamps in homes and institutions to save electricity.

Mbiriri said the exercise would save about 180MW of power, adding this would 
also help the prepaid metering programme to be launched this year.

Zimbabwe is facing chronic power shortages, where output is about 1300MW 
against national demand of 2200MW, albeit total installed capacity is 1960 
MW. According to a Medium-Term Plan review report, domestic power generation 
declined by 1,2% to 1280MW in January and February from the 1295MW 
registered in December 2011. 

Ratepayers Accuse Power Utility of Corruption

Residents in Zimbabwe's capital, Harare, claim employers and officials from the country's power utility are targeting bill defaulters, seeking backhand payments to bypass disconnections.

In a new report the Harare Residents Trust says it has received numerous complaints from residents saying ZESA employees were threatening and abusing them and asking for bribes to by-pass disconnections for customers who are failing to cope with huge bills.

Read more: Ratepayers Accuse Power Utility of Corruption

Chinese firm fails environment assessment

Chinese firm fails environment assessment

http://www.financialgazette.co.zw

Friday, 15 June 2012 11:55

BULAWAYO — Plans by Africa Sunlight Energy to commercially exploit methane 
gas in Matabeleland North have suffered a major blow after the Chinese firm 
failed an Environmental Impact Assessment (EIA).
The company has since been ordered to halt operations, dashing hopes for 
alternative power generation in the region.
Africa Sunlight Energy was in the middle of exploring coal and coal-bed 
methane in Gwayi with a view to establish a power station.
But the Environmental Management Agency (EMA) is of the view that its report 
was not convincing.
EMA spokesperson, Steady Kangaka told The Financial Gazette that the agency, 
as the custodian of the environment, would not give a go ahead to projects 
that might harm the ecosystem.
“The development we want is a sustainable one which will remain long after 
we have departed from this planet. It must be economically, socially and 
environmentally friendly. If one of those parameters is missing then as EMA 
we cannot give a go ahead,” said Kangaka.
“It has to be done in a proper manner. In this instance, the company wants 
to mine near a conservancy area therefore we have to be absolutely sure that 
it will not interrupt with water supply and wildlife,” he added.
The Gwayi Valley Intensive Conservation Area had also complained about the 
growing number of coal mining companies operating in the conservancy fearing 
their operations would destroy the hunting and photographic safaris, which 
are their major source of revenue in the wildlife-rich area.
During a consultative stakeholders meeting last month, it emerged that 
open cast coal-mining activities have affected 32 farms in the conservancy 
where more than 1 000 people reside.
Of late, several companies have been given rights to start mining and 
exploration activities in the coal-rich region, with the latest being 
Discovery Investments Company, which was given the green light to conduct 
coal bed methane gas exploration in Mzola and Dandanda communal lands in 
Lupane and Binga districts; Markrock Exploration and Mining Company for coal 
exploration in the Gwayi area of Lupane as well as Glotech Engineering for 
a Spiral Plant at Hwange Colliery.
Recently, the Minister of Mines and Mining Development Obert Mpofu announced 
that more companies were keen on investing in mining activities in 
Matabeleland North and took a swipe at the Gwayi Catchment Council 
stakeholders for trying to block the new investments, which he said will go 
a long way in uplifting the livelihoods of ordinary people.
Economic commentator, Eric Bloch, said it will take time before the methane 
gas is fully exploited to provide alternative power for the whole 
country. — Own Correspondent.

ZESA Lost Money to RBZ - Comptroller and Auditor General

ZESA Lost Money to RBZ - Comptroller and Auditor General

http://www.radiovop.com

10 hours 27 minutes ago
Font size:

HARARE - June 16, 2012 – Zimbabwe Electricity Supply Authority (ZESA) has 
lost slightly over US$1million from its tobacco farming activities after the 
funds were forfeited by the Reserve bank of Zimbabwe (RBZ), the Comptroller 
and Auditor General Mildred Chiri has said in her latest report.

The top government auditor also revealed that ZESA risks losing nearly 
US$5million held by banks in South Africa and China.

“I noted that there were tobacco sales to Zimbabwe Leaf Tobacco amounting to 
US$1 299 412, 40 that have not been recovered for a period of over two 
years. ZLT instructed RBZ to make a transfer of the funds to ZESA 
enterprises. However, the RBZ took the funds citing that ZESA holdings has a 
debt owing to RBZ which RBZ decided to set off. ZESA enterprises was still 
reflecting this trade debtor in their accounts as owing,” said Chiri.

“Recommendation- the debt should be transferred to ZESA holdings upon 
reaching mutual consensus or provide for the debt in full. Concerted effort 
should be made to resolve this issue.”

The report added that ZESA was losing revenue due to non billing of 
customers as most farmers were not being due to their hostility to meter 
readers. It added that ZESA officials sent to disconnect defaulters were 
sometimes bribed.

It said US$4; 2 million was held with South Africa’s FNB bank and US$33 000 
by Escrow bank of China and no follow ups have been made on the money for 
years.

“No reconciliations were prepared for the accounts as no statements were 
received. In the prior year no reconciliations were prepared due to the same 
reason. Thus there has been no correspondence with the banks for the past 
three years,” Chiri said in her report.

ZESA slammed for sticking with estimated bills

ZESA slammed for sticking with estimated bills

http://www.swradioafrica.com/

By Alex Bell
15 June 2012

Zimbabwe’s Electricity Supply Authority (ZESA) has been slammed for 
continuing to issue estimated bills to power users across the country, 
despite the unreliable service provided.

ZESA’s Chief Executive, Josh Chifamba, said this week that the power utility 
does not have the money to pay for meter readers. He told the parliamentary 
portfolio committee on state enterprises and parastatals that they have no 
choice but to keep asking for payment based on estimates, because meter 
readers would mean raising rates.

A report from that same committee has revealed that there was no correlation 
between the ZESA charges and services rendered, with some users being 
charged, despite not using power.

“For example, one lady in Cowdray Park, Bulawayo, during one of the meetings 
stated that while she was away in South Africa for three months after having 
settled her bills and locked the house, upon return she found a US$500 bill 
awaiting her despite the house being uninhabited. The lady informed the 
committee that efforts to get ZESA to rectify that had not yielded any 
results,” the report said.

The report also said that many consumers, who had gone for days without 
electricity due to faults in the ZESA system, still received high bills 
every month.

Simbarashe Moyo from the Combined Harare Residents Association (CHRA) 
slammed ZESA for what he called their “incompetence and insincerity.” He 
told SW Radio Africa that ZESA bills do not tally with the service being 
provided, and often “there is no service to speak of.”

“This is a parastatal that clearly does not care at all about the plight of 
residents. Most people don’t have jobs, they can’t afford the bills, but if 
they don’t pay they get cut off,” Moyo said.

The CHRA official said that privatisation of the electricity authority 
should be seriously considered, because the entire country was being 
affected by ZESA’s mismanagement.

“Parastatals like ZESA are not doing well because they are run on the basis 
of government nepotism. So it would be good to privatise because once you 
invite competition, you’ll have better service. And all Zimbabweans want is 
proper service,” Moyo said.

ZESA was earlier this year forced into defending itself after it was 
revealed that top level government officials were defaulting on their bills, 
but still receiving service. This included the Mugabe family, who owed more 
than US$300,000 to the utility.

These revelations came as ZESA recommitted itself to cutting off all bill 
defaulters. But to date only general members of the public have been 
punished in this way.

Plans to expand Kariba power plant hit snag

Plans to expand Kariba power plant hit snag

http://www.thestandard.co.zw/

Monday, 11 June 2012 12:15

BY NQABA MATSHAZI
PLANS by Zimbabwe to add two more generators to Kariba South have all but 
hit a brick wall, with the authority responsible for Kariba Dam saying the 
project was not feasible.

Zimbabwe, which shares the Kariba dam with Zambia, was hoping that the new 
generators would help ease power shortages and load-shedding, which are 
common in the country.

“We have looked at the feasibility of the project and there is not enough 
water to run continuous power generation, unless they propose to do so 
during the rainy season peak periods,” Wilson Sakala, the Zambezi River 
Authority senior manager for Water Resources and Environmental Management 
explained.

“We fear that if it is continuously run, there won’t be enough water in the 
dam. However, when it’s not during the rainy season, the two units can run 
but only for shorter periods and that means when the dam is full to 
capacity, we no longer have to open the floodgates.”

But the Zimbabwe Power Company (ZPC) insisted that it would go ahead with 
the project, as it was looking to expanding Kariba South to increase 
generational capacity.

“It has not been communicated to us that there are problems with our 
expansion project. In fact we have been advised that the water levels are 
always high in the Kariba Dam.

“Early this year, during a tour of the dam by Sadc, we were apprised on the 
advantages of adding two more units,” Fadzai Chisveto, ZPC spokesperson 
said.
However, the Zambezi Watercourse Commission (Zamcom), which administers the 
Zambezi River on behalf of the eight countries that are on the basin, says 
Zimbabwe’s only chance of increasing power generation is based on its 
ability to look for foreign investors.

“If Zimbabwe cannot buy enough power from the existing Sadc power pool, the 
only solution is for the country to open doors to partners that can fund its 
power projects,” Michael Mutale, Zamcom executive secretary said.

Countries on a cross-border water course like the Zambezi are supposed to 
inform each other of any projects that they are working on the river, so 
that it does not affect other nations who are either up or downstream.

There are eight countries on the Zambezi watercourse and these have to okay 
Zimbabwe’s plans on power generation, which also have to be approved by the 
ZRA, which administers the Kariba Dam on behalf of Zimbabwe and Zambia.

Countries on the Zambezi watercourse are Botswana, Angola, Zambia, Malawi 
Mozambique, Namibia, Tanzania and Zimbabwe.

Sadc hopes for speedy resolution

Sadc hopes that the issue of adding more generators at Kariba power plant 
may be resolved accordingly. Phera Ramoeli, Sadc senior programme officer 
for water, said despite technical obstacles to Zimbabwe’s installing 
additional generating capacity at Kariba South, he expected a solution would 
be found.

“I am sure these are only technical issues but Zambia and Zimbabwe will iron 
out these between themselves and find a win-win solution since ZRA is a body 
that works in the best interests of the two,” he said.

Zesa employees cash in on defaulting residents

Zesa employees cash in on defaulting residents

http://www.thestandard.co.zw/

Monday, 11 June 2012 14:54

BY JENNIFER DUBE
HARARE — Some Zimbabwe Electricity Supply Authority (Zesa) employees are 
cashing in on desperate Glen Norah residents, charging them an average of 
US$30 per household to avoid power disconnection, a residents’ rights 
organisation has said.

The Harare Residents’ Trust (HRT) last week said some Zesa employees were 
demanding payment to stop disconnecting defaulting residents’ power. 
“Residents in the area have resorted to bribing Zesa employees around US$30 
to avoid disconnection of electricity. Several residents have done this in 
the community and continue to fall prey to the Zesa employees,” said the 
Trust.

The residents, said HRT, also complained that most of their electricity 
bills were not a true reflection of consumption at household levels, as they 
were based on estimates. They also complained about faulty billing and 
excessive load-shedding in the suburb.

The residents also said Zesa officials were very uncooperative and hostile 
whenever they attempted to seek detailed explanations on their accounts. 
Zesa spokesperson, Fullard Gwasira, professed ignorance that some Zesa 
employees were getting paid by defaulting residents to avoid disconnections. 
He urged residents to pay the bills at banking halls and not to individuals.

“Whoever is paying that US$30 is being cheated and they are doing themselves 
a disservice because their bills remain the same and even increase the 
following month,” said Gwasira.

“One is better off paying that US$30 to Zesa and having their bill lowered 
by the same amount and not giving it to someone for temporary relief, but 
still risk disconnection.”  He urged the public to report such people to 
Zesa.

ZESA to continue with disconnections: Gwasira

Gwasira however said the disconnections to defaulting residents in Glen View 
and other areas would continue.  “It is not like we have a special operation 
against residents in that area,” he said.

“This is just a routine operation,” said Gwasira. “We read meters, send 
bills and expect payment, but some residents do not pay, prompting us to 
send reminders in the form of a second bill. We are open to those who want 
to negotiate payment plans but some ignore us, leaving us with no option but 
to disconnect, which is the last resort.”

Gwasira said Zesa reads 80% of meters every month and starts with the other 
20 the following month. He said rate payers should know that there is a 
direct relationship between payments and the quality of service delivered.

“The better payment we receive, the better the service we deliver because we 
use the money to improve our services,” he said.

Zim-Zambia partnership could ease ZESA woes

Zim-Zambia partnership could ease ZESA woes

http://www.thezimbabwean.co.uk

Zimbabwe’s power supply is hoped to improve following a partnership the 
country entered into with Zambia to develop the electricity generation 
capacity of the Batoka gorge.
06.06.1203:30pm
by Sofia Mapuranga

The project, already captured in the Southern African Development Community 
(Sadc) Infrastructure Investment prospectus, will see the country exploring 
means to develop the Batoka gorge for the production of energy.

The project involves the construction of a dam and a hydro power plant on 
the Zambezi River.

The potential capacity of the site is 1 600 MW to be shared equally between 
Zambia and Zimbabwe Addressing delegates on Tuesday at the official opening 
of the fifth River Basins Organisations workshop being held in Harare under 
the theme “Monitoring the implementation of the Sadc Protocol on shared 
watercourses”, the Minister of Water Resources Management, Sam Sipepa Nkomo 
said there was need for a systematic and consistent implementation of the 
convention.

“It is in this light that in partnership with the Republic of Zambia, we are 
exploring means to develop the Batoka gorge. Water plays a major role in 
energy production in Zimbabwe,” said Nkomo.

“In SADC, we have the necessary instruments and institutions to foster 
integrated water resources management at the river basin level,” he added.

Nkomo said the speedy implementation of the agreed action points was 
critical because water remained a critical component of the development 
agenda in the region.

“The onus is on water authorities to ensure that the water sector is managed 
efficiently and in line with international best practices,” he said.

Zimbabwe has over the years suffered poor power supplies because of limited 
local generation capacity, lack of funds to import adequate electricity and 
a scaling down of provisions from the region.

He said the establishment of sufficient institutional development for 
trans-boundary waters had the capacity to enhance cooperation between 
countries and could boost regional socio-economic development and 
integration.

“Trans-boundary waters can make a contribution towards regional peace if the 
institutional capacity exists to manage them cooperatively for the benefit 
of all basin states,” he said.

The Sadc Director of Infrastructure and Services, Remigious Makumbe, said 
water was a key pillar of the economy, adding that there was need to scale 
up its availability to ensure food security in the region.

“Water is the engine for economic growth and many of our member states 
continue to face the challenge of access to water supply and sanitation,” he 
said.

He added: “It is important for SADC countries to build strategic water 
infrastructure that will increase land under irrigation to ensure the 
availability of water and guarantee food security in the region.”

The fifth RBOs workshop aims to build a consensus on Sadc strategies to 
support the efforts of member states in the establishment of institutional 
development.

It is also seeking to strengthen and develop RBOs and other joint 
trans-boundary water resources management mechanisms in the region.

ZESA Angers Glen Norah Residents

ZESA Angers Glen Norah Residents

http://www.swradioafrica.com

HRT Membership Desk

4 June 2012, Glen Norah – ZESA has adopted punitive measures to defaulting 
residents here who have not been paying their electricity bills consistently 
by embarking in wide spread electricity disconnections. Residents in the 
area have various reasons why they have not been settling their monthly 
electricity bills.  Residents feel that electricity bills are based on 
estimates and are not a true reflection of the consumption at household 
level, load shedding and faulty billing. This has frustrated some 
breadwinners in the community who earn way below the poverty datum line. 
This has left them with what they said “no reason to pay electricity bills”. 
This contradicts the HRT policy which advocates for shared responsibility 
between residents and service providers in service delivery. From the HRT’s 
perspective, residents should exhibit their responsibility in service 
delivery mainly by paying bills for services rendered.  However, rates 
should be affordable for the good of the greater public.

Having received the reports of massive power disconnections from the Glen 
Norah B’ Residents’ Committee (GRC), that is responsible for monitoring and 
evaluating community service delivery by service providers, the HRT 
facilitated a mobile case work clinic in the area. From the interviews held 
by the HRT Membership Officer, Simbarashe Majamanda, HRT Community 
Coordinator Ms Abigail Itayi and the HRT Programs Intern, Mr Marshall 
Masiyazi from the Midlands State University on Tuesday 29 May 2012 in Glen 
Norah B Community, the dire economic situation of the country has affected 
the capacity of residents to pay electricity bills.  Most residents 
appreciated that they have an obligation to pay for their electricity but 
they have failed due to their socio-economic status. Eighty-nine (89) 
reports from 53 women and 36 men were received and documented by the HRT 
team within three hours at one of the households in the community.

The local Member of Parliament Honourable Gift Dzirutwe is seriously 
concerned with the situation. He has helped the residents to deal with the 
situation through sharing information and providing transport to the ZESA 
offices in the city centre.

The following key issues came from the interviews:

Economic problems: Elderly men and women interviewed aged between 59 and 
75 said they lack a source of income which has affected their capacity to 
settle their electricity bills.  Elderly women said that most of them are 
widowed and they rely mostly on vending activities which does not give them 
much money for survival. As vendors they also face challenges from the 
Zimbabwe Republic Police and Municipal Police who conduct raids in the name 
of illegal vending activities. This clearly shows that they also lack access 
to designated vending points or that they do not afford them if they are 
available.

Faulty billing: Residents said that even if they make payments to ZESA, 
the debt continues to sky rocket. “It appears making a payment is an 
indication that you have a bit of money that ZESA can suck from you” said 
one elderly man  aged  85 who showed that he does not have any hope to clear 
his debt which currently stands at $954.21 Account Number 283786651. The man 
went on to say that he was prepared to pay $45.00 per month for electricity.

Growing insecurity: There is a feeling that residents may lose their 
properties just as what happened to three households in Mabvuku after debt 
collectors confiscated their properties due to outstanding water rates in 
February 2012. Elderly women said that the high debts have caused insecurity 
to their children who are the heirs to their properties which they have also 
not fully acquired from council under the “rent to buy program”.

Unprofessional conduct by ZESA employees: Some of the interviewees 
revealed that ZESA officials are very uncooperative and hostile whenever 
they attempt seeking detailed explanations on their accounts. Residents in 
the area have resorted to bribing ZESA employees around $30.00 to avoid 
disconnection of electricity. Several residents have done this in the 
community and continue to fall prey to the ZESA employees.

Transition to multicurrency system: Although the ZESA Public Relations 
Officer, Mr Fullard Gwasira reported to HRT Communications Officer, Mr 
Shingayi Jena that ZESA indicated that ZESA scrapped off debts from 
residents accounts following the transition from the Zimbabwe dollar era to 
the multi-currency regime in February 2009, residents in the area are of the 
view that the transition was ill- managed and lacked transparency. From the 
residents’ viewpoint, the debts have accumulated largely due to estimated 
billing, the manipulated transition from the local currency to the 
multi-currency system, and the interest charged on overdue accounts.

Current situation: HRT offices are overwhelmed by residents who have ZESA 
complaints and they require ZESA’s assistance. The HRT Membership Desk is 
receiving reports of unprofessional conduct by the Harare ZESA Sales 
Managers specifically the ZESA Sales Manager who are telling referred 
clients that they are not prepared to read HRT referral letters in which the 
HRT writes to seek their intervention on individual cases. ZESA is saying 
that residents whose electricity was disconnected are supposed to settle 
their bills in full.  According to one female client this morning, the ZESA 
sales manager told her that he was not going to read her letter. She 
mentioned that she is prepared to pay $50.00 per month.  She was advised 
that she could pay the $50.00 per month until her debt is cleared then her 
electricity would be reconnected.  Last week, some clients were assisted by 
the Sales Manager but it was upon payment of 25% of the debt which was 
reduced to the previous 50% requirement. There is growing tension between 
ZESA and the residents of Glen Norah. Some residents have resorted to 
reconnecting power illegally which is contrary to the HRT policy.  They have 
and are also using the few dollars they had reserved to paying their 
electricity for other pressing needs at household level.

If the situation continues, ZESA employees face the risk of experiencing a 
backlash from disgruntled residents. It is up to ZESA to treat residents 
with respect or regret their uncalled for actions. It is time to change the 
approach or be forced to change the approach! The choice is for ZESA to 
make.

This will not benefit ZESA or the resident. We need to be realistic to 
address residents’ needs as well as the capacity needs of ZESA as the 
service provider.

For details and comments, please contact us on  This email address is being protected from spambots. You need JavaScript enabled to view it. /
This email address is being protected from spambots. You need JavaScript enabled to view it. or our website www.hrt.org.zw

ZESA seals US$230m India deal

ZESA seals US$230m India deal

http://www.newzimbabwe.com/

05/06/2012 00:00:00
by Bloomberg

THE Zimbabwe Power Company has signed a $230 million memorandum of 
understanding with India’s Wapcos Ltd to overhaul the country’s three 
thermal stations.

The plants covered are Bulawayo, Hwange and Munyati, Zimbabwe Power, the 
power generating unit of Zesa Holdings (Pvt) Ltd., said in a newsletter 
published Tuesday.

The memorandum also includes a feasibility study for the Gairezi hydro-power 
station and upgrading the Deka pumping station for Hwange Power Station, 
Zesa said.
It didn’t say when the agreement was signed.
The power utility is struggling to meet national demand with supplies being 
rationed to both commercial and domestic users.

Zesa currently generates about 1,116 megawatts of electricity today against 
a national demand of between 1,900 to 2,200 megawatts and tries to plug the 
gap with imports from regional suppliers.

Govt to restructure energy sector

Govt to restructure energy sector

http://www.dailynews.co.zw

Written by Taurai Mangudhla, Business Writer
Monday, 04 June 2012 14:40

HARARE - Zimbabwe plans to restructure its energy sector and make way for 
independent power distribution firms, Zesa Holdings (Zesa) chief executive 
Josh Chifamba said.

He told a Thursday Confederation of Zimbabwe Industries Annual General 
Meeting, the move was in line with government’s plans to improve utility 
services while establishing an independent power regulator.

“There is a lot of progress on that and I wouldn’t want to pre-empt it (but) 
there is a whole white paper on that and the minister is supposed to present 
it to cabinet,” Chifamba said without giving specifics of the proposed new 
plan.

The energy sector is currently regulated by Zimbabwe Energy Regulatory 
Authority.

The Zesa chief’s remarks came after Francis Masawi, an engineer and regional 
independent energy consultant, argued there was an  imminent need to 
restructure the country’s power sector.

He said the current single buyer model-only by Zimbabwe Electricity 
Transmission and Distribution Company (ZETDC)-was an impediment to 
investment in the energy sector.

“Imagine you have a private production company and you want to sell to a 
sole buyer that is owed $500 million by their                 consumers, how 
are they likely to pay,” Masawi said.

“That thing (the single buyer model) must be done away with; it doesn’t 
exist in the Act. It was only transitional.”

Masawi said Zesa should assume a role of shareholder only.

He said competition should be introduced in the supply side of electricity 
just as it is required in the petroleum sector.

“Whatever the reason, the current structure has failed to resuscitate the 
energy sector.”

Zimbabwe currently has         capacity to generate about 1 200 MW of 
electricity, mainly from Kariba Hydro Power Station and Hwange Power Station 
(HPS) compared to a rising national demand of around 2 200MW.

The country’s generation capacity is now half of what it used to be in 1980 
when the economy and population was smaller.

New projects that are meant to improve the current deficit position could 
take longer to commence   after potential takers for the  country’s HPS 
rehabilitation project asked for a one month extension on the June 5, 
tendering deadline.

Chifamba said this would delay adjudication of tender to restore HPS unit 
seven and eight to end of July.

“If we get to a financial close by the end of the year then by early 2016 
there should be something coming out of the two projects,” he said, adding 
his organisation was aware of the anxiety among Zimbabweans for an immediate 
power solution. Zesa, Chifamba said, was not spared by the country’s 
decade-long economic stagnation and needs a lot of investment.

“The state of the equipment at all levels is appalling and dangerous.

That explains the number of accidents we are having now.”

In February government announced plans to unbundle the Zimbabwe Electricity 
Transmission and Distribution Company (ZETDC) into two separate entities to 
improve operating efficiency.

ZETDC is responsible generating, transmitting and distributing power and was 
formed in 2002 after government unbundled ZETDC into different companies 
under Zesa.

The Electricity Act ushered in the formation of five successor companies, 
the Zimbabwe Power Company (ZPC), Zimbabwe Electricity Transmission Company 
(Zetco), Zimbabwe Electricity Distribution Company (ZEDC), Zesa Enterprises 
and Powertel Communications.

ZEDC’s business is the distribution and retail of electricity to the final 
end user.

In line with the approved structure, all power generation assets and 
operations are under ZPC.

Zesa Enterprises, another subsidiary of Zesa Holdings comprises of four 
business units namely Zesa Technology Centre, Production and Services, 
Transport Logistics and Projects.

It is a flexible investment arm for Zesa Holdings that has a diversified 
business portfolio.

‘Zesa abandons load shedding schedule’

‘Zesa abandons load shedding schedule’

http://www.thestandard.co.zw/

Saturday, 02 June 2012 18:09

POWER supply remains erratic in most parts of Harare with the Zimbabwe 
Electricity Supply Authority (Zesa) failing to stick to a load shedding 
schedule it published in the media recently, seriously affecting many 
business operations.
Despite the long hours of power cuts, residents complain of exorbitant bills 
at the end of every month. The cost of electricity is affecting thousands of 
households as they have to buy paraffin and firewood at a higher cost, yet 
still have to settle their bills.
Community coordinator, Ronia Gwaze, said that residents of Vainona and 
Hatcliffe suburbs had electricity cut off recently due to unpaid electricity 
bills. Abrupt power outages have resulted in electrical gadgets being 
damaged. In Vainona, a house at 14114 Tern Avenue was gutted by fire caused 
by a burst paraffin stove during one of the numerous power outages. Some 
residents have resorted to using generators or solar lights because of the 
constant power cuts.

Water Supplies
Water supplies in Waterfalls remain poor with most areas going without the 
commodity for several days. During the past week, several residents had 
their water disconnected by the City of Harare yet supplies are erratic. The 
water bills are so high that most residents feel they are unjustified. 
Residents in Glen View are receiving water three times a week. Given this 
situation, residents have to queue at the few boreholes sunk by humanitarian 
agencies.
Women and school-going children wake up very early to line up for water and 
at times are bullied at the boreholes. Some residents in areas without the 
boreholes have dug shallow wells which are unprotected, raising fears of 
disease outbreaks.

Health and Environment
Refuse is not being collected in Mbare National and Mbare Musika. The same 
situation prevails in Waterfalls at shopping centres such as Park Town and 
Zindoga business centre. Residents of Hatcliffe Extension have resorted to 
burying or burning rubbish in pits.
This is quite the opposite of what is happening in Hatcliffe 1, where there 
is frequent refuse collection. Refuse is supposed to be collected every 
Saturday in Glen View but they hardly come. This has led to residents 
throwing rubbish everywhere in the area, along the roads and on street 
corners.
Residents in most parts of Harare pay for their plumbing services if they 
experience blocked sewer pipes on their premises. This is despite that 
council plumbers are supposed to provide that service to the residents. — By 
Harare Residents Trust (HRT)

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