Power supply: Zimbabwe’s ZESA still owes Mozambique’s EDM US$10 million – O País

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Power supply: Zimbabwe’s ZESA still owes Mozambique’s EDM US$10 million – O País

3:49 CAT | 06 Apr 2022

Photo: O País

Zimbabwe owes Mozambique US$10 million for electricity it has already consumed, it emerged at the end of a visit by Zimbabwe’s President Emmerson Mnangagwa to the gas-fired power station in Beluluane Park, Maputo province, on Tuesday (05-04).

Zimbabwe has a deficit in electricity supply, and President Mnangagwa is in Mozambique to seek solutions to this scenario. It is in this context that he visited the Maputo Gas-Fired Combined Cycle Power Plant on Tuesday.

Accompanied by the CEO of state-owned national power utility Electricidade de Moçambique (EDM), the Zimbabwean president received explanations on how the enterprise works.

At the end of the visit, EDM chairman Marcelino Alberto expressed his institution’s willingness to increase the amount of energy it exports to the neighbouring country.

“Zimbabwe is, in fact, facing an energy crisis and we, as neighbours and partners, have an obligation to support it. We have therefore been holding talks with our sister country to seek other ways to help. Naturally, the power of the Cahora Bassa Hydroelectric (HCB) is limited; it supplies South Africa, EDM and Zimbabwe, but even so, it is not enough. It is in this sense that we are looking into other energy sources, such as gas,” Alberto said.

Alberto highlighted that cooperation between the two countries in the energy sector was of many years’ standing, and Zimbabwe was not a partner to be simply discounted.

“We have been partners for a long time,” he said. “In 1997, we built the Mozambique-Zimbabwe interconnection, through which we are exporting to them a total of 50 megawatts of power. In fact, the contract was renewed two weeks ago, and we expect the Maputo gas-fired power station to provide part of its capacity to our neighbour.”

But, despite having paid a good part of its debt in 2021, neighbouring Zimbabwe is still indebted to Mozambique.

“Last year, Zimbabwe made a titanic effort to pay down its debt to Mozambique, which stood at US$45 million, and a good part of that amount – US$35 million – was paid last year. At the moment, the amount outstanding stands at US$10 million,” the EDM chairman explained.

H.E. President @edmnangagwa attends a State Banquet hosted in his honour by H.E. Filipe J. Nyusi, the President of the Republic of Mozambique. The two Presidents emphasized the need to ratchet up bilateral relations to the highest level for the benefit of the two nations. pic.twitter.com/5P9ghHxzvc

— Presidential Communications Zimbabwe 🇿🇼 (@DeptCommsZW) April 4, 2022

The Beluluane power plant was inaugurated by Filipe Nyusi in 2018, and represents an investment of US$180 million, of which US$13 million was made available from the state budget and US$167 million came from Japan, via the Japanese International Cooperation Agency (JICA), and will be repaid in 40 years.

By Arsenio Massingue

Watch the TVM report.