Zesa secures $150m for infrastructure rehabilitation

02 Aug, 2015 - 02:08 0 Views
Zesa secures $150m for infrastructure rehabilitation

The Sunday News

Nqobizitha Dhlamini Business Reporter
THE Zimbabwe Electricity Supply Authority has secured $150 million from an unnamed financial institution which will be used to maintain some of its ageing infrastructure as the power utility moves to improve efficiency in power generation. Zesa spokesman Mr Fullard Gwasira declined to name the financial institution but confirmed the money would be used to ensure that key projects that have a bearing on system reliability and growth were catered for.

“A renowned financial institution has since loaned us $150 million for infrastructural maintenance and we believe the development will go a long way to ensure network reliability to the convenience of our valued customers.

It is anticipated that all the key projects that have a bearing on system reliability and growth will be catered for within that facility,” he said.
Mr Gwasira said the funds would be invested to replace ageing equipment as well as ensuring network expansion.

“We have equipment that has aged and that is in need of rehabilitation and this money will go a long way in ensuring that the equipment is serviced for the benefit of our customers and the smooth flow of business,” he said.

Mr Gwasira said the installation of prepaid meters had resulted in improved revenue collection.
“Installation of prepaid meters has increased revenue inflows as the collection index in the postpaid regime of around 65 percent has increased to more than 100 percent.
In that vein, the power utility is now able to recover customer debt each time defaulters purchase their electricity.

It is also imperative to realise that the prepaid metering system has an inherent Demand Side Management mechanism that ensures enhancement of electricity conservation and the position has an effect on revenue collection levels as well,” he said.

Mr Gwasira revealed that the prepaid meter installation programme was nearing completion.
“The programme is around 98 percent towards completion although it has been slightly hampered by looped connections wherein those customers share consumption points, especially in old suburbs.

There is a need to separate those channels first so that the affected customers are given independent channels to access electricity.”
He said the Zimbabwe Electricity Transmission and Distribution Company was expecting an additional 150 000 prepaid meters by September.

“We expect more prepaid meters by September to successfully complete the project. These meters will also be used for fault maintenance to ensure efficient service delivery to customers,” he said.

The country is grappling with power shortages due to increased demand and ageing equipment.
The country is producing an average of 1 320 megawatts against a national demand of 2 200MW.

The country’s installed capacity is 1 900MW which is even below the demand pointing to the need for new investments to boost power generation in the country.

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds