Govt Delayed ZESA Holdings-Afreximbank Loan Facility - Gata

Zimbabwe has secured US$100 million from the Afreximbank to clear its arrears owed to Mozambique and South Africa power utilities, EDM/Cahora Bassa and Eskom respectively.

This was revealed by ZESA Holdings executive board chairperson, Sydney Gata in an interview with Sunday News. There were, however, some delays in securing the loan facility. Gata explained:

The … unfortunate thing is that while Zesa has raised through a bank US$100 million to pay for arrears to Eskom; Electricidade de Moçambique (EDM), which is the power utility for Mozambique; and Cahora Bassa, which is like the ZPC (Zimbabwe Power Company) of Mozambique, there has been an inordinate delay in procuring borrowing certificates and guarantees from Government. It took almost two months to get the certificate.

By the time they were issued just before Christmas, everybody had gone on holiday and we were not able to process. As people come back from holiday, we are pursuing with the bank to clear the arrears and activate support of up to 400 MW from Eskom and 150MW from EDM.

In respect of Cahora Bassa, it is both to pay for the arrears and also renegotiate an extension of the old agreement. In respect of Eskom, the condition precedent is to pay for the arrears. With EDM is also to pay for the arrears.

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Meanwhile, ZESA has been able to pay in advance to French and Italian companies that are currently working to revive two units at Hwange Thermal Power Station.

The revival of the two units is expected to be completed in March this year and will add another 300MW or so to the national grid.

More: Sunday News