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Luthando Mapepa Chipinge Correspondent
At least $80 million has been invested by private players in mini hydro power stations in Manicaland in recent months and more new such stations are expected to come on line following the liberalisation of the energy sector.
Speaking on the sidelines of the official opening of Kupinga Hydro-Power Station in Chipinge last week, Finance and Economic Development Minister Patrick Chinamasa urged private players to take advantage of the opening up of the energy sector to invest more in hydro power stations.
He said Government welcomed independent power producers to mitigate power shortages that the country was experiencing.
“Government undertook some reforms in the energy sector that also include liberalising the sector to allow for the participation of independent power producers,” he said.
“The demand of power is increasing as the country is on a trajectory stage of growth, therefore, we have to import power from Mozambique and South Africa.
“Government is saying we need to close this gap by allowing all independent power producers to invest in the energy sector. There is no excuse for independent players for not investing in this sector as we have liberalised it.”
Cde Chinamasa said Government rolled out incentives for all private players who invest in the energy sector.
“There are various incentives that can be given to investors in strategic sectors such as energy,” he said.
“All these companies investing in this sector will receive a national project status where Government will exempt payment of withholding taxes, as well as cancel cost reflective tariffs.”
In an interview, Energy and Power Development Minister Dr Samuel Undenge said Government was finalising the Renewable Energy Policy framework and Independent Power Producer framework aiming at enhancing private sector participation in the sector.
“We have lined up policies that will see greater private sector involvement and participation at numerous power projects in the country,” he said.
Online Reporter