GOVERNMENT will in the next two weeks set up a company to assume ownership of Kariba South power plant's assets to ring fence revenues for clearing its expansion loan. The company will be responsible for the implementation of the
The initiative forms part of a comprehensive strategy that Government adopted to ease a debilitating power deficit that has spawned rolling power cuts for domestic and commercial users.
Energy and Power Development Minister Dzikamai Mavhaire yesterday said his ministry will set up the board of directors for the new company within the next two weeks.
"We will set up the board. In two weeks the board will be there. We are talking to people (board members). We want capable people for the job. We need experienced and young people with right qualifications," Minister Mavhaire said.
Minister Mavhaire expressed satisfaction with progress on the project thus far, regardless of recent reports that nothing was moving, saying some of the equipment for the project was already on site while offices to be used during the expansion had been built.
However, there is concern that formation of the new firm, a prerequisite for the release of the Chinese loan for the expansion, was moving slowly with fears that this could delay the expansion programme. The bid for the project was won by
The Herald Business understands that the Kariba South assets will be transferred into the new company as per provisions of the multimillion dollar loan agreement the
The loan facility from China Eximbank, secured by the then Victor Gapare led
Minister Chinamasa said under this arrangement, the bank will provide funding amounting to
Industry sources said the former ZPC board exhibited great ingenuity to secure the loan under a loan agreement that enables the project to repay the debt from its own revenues.
an average of 1 200MW against national requirement for power at peak demand periods of 2 200MW.
As part of measures to effectively deal with the shortages, being minimised through imports from the regional countries, Government is also pursuing several other power projects.
The second most promising project involves expansion of
Over the past decade,
Other projects in the pipeline include partnership with
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