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Zambia Asks Zimbabwe To "Prepay" US$6.3m Monthly For 100MW Electricity

Zambia Asks Zimbabwe To "Prepay" US$6.3m Monthly For 100MW Electricity

Zambia’s Energy Minister Peter Kapala said that the country’s power utility, ZESCO, will next month commence the exportation of 100MW electricity to Zimbabwe under a five-year deal.

In a statement published on his Facebook page, Kapala said electricity from the Kafue Gorge Lower will be exported to Zimbabwe and Namibia through contracts signed in the last few months.

Zimbabwe Electricity Transmission and Distribution Company (ZETDC) Acting Managing Director Howard Choga recently told local media that ZESA has to pay monthly deposits of US$6.3 million to access the electricity from Zambia. He said:

We signed power import deals with Zambia a long time ago, but we had not been getting electricity from that country because of cash flow challenges.

Now, because we have prepaid, we expect this to be settled in the coming weeks and we will start receiving 100MW from Zambia. We have to prepay them a month before we receive the electricity.

The Zimbabwe Power Company – ZESA’s power generation arm is currently producing 1 201MW at its five power stations against peak winter season demand of 2 200MW.

This has resulted in debilitating power cuts lasting for hours which have negatively impacted farming, manufacturing, mining and retail sectors as well as households.

More: Lusaka Times

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