Mining & Energy
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Zimbabwe’s long-standing debts to Electricity of Mozambique (EDM) continue to rise, A Verdade reports. Between 2015 and 2016, the Zimbabwe Electricity Supply Authority (ZESA) debt grew by more than 50 percent, but EDM has not cut power to its neighbour.
During the last financial year, ZESA’s debt increased from just over 400 million meticais on 31 December 2015 to 614,533,595 meticais, according to the EDM Report and Accounts to which @Verdade has had exclusive access.
Because of the political implications of the matter, Mozambique has created a commission including members of government to collect the debt, which has accumulated as the economic crisis in Zimbabwe has intensified during the last decade.
Committee meetings however had “resulted only in some derisory payments”, EDM’s Director of Economy and Finance, Getá Remígio Manuel Pery, told @Verdade.
“As an alternative, the commission is evaluating the possibility of ZESA making a payment of the remainder in kind, that is to say, in electrical equipment, especially transformers, since the EDM currently has a shortage of this type of equipment, and ZESA Holdings have a factory for the same,” Pery said in the exclusive email interview.
Clearly, there is no cut in the supply of energy to Zimbabwe in prospect, as the report also reveals that the expected revenues of ZESA are given as collateral for two loans that EDM has contracted with the French Development Agency Bank.
The loans are FRF 48 million for the reinforcement of the [EDM] Centre system and a further FRF 60 million for the connection between the Cahora Bassa hydroelectric plant and Zimbabwe.Source: A Verdade
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