adminalready approved the plan which will result in the creation of three companies, namely the Zimbabwe Power Company, the Zimbabwe Distribution Company and the National Grid Services Company responsible for transmission of power.
The NGSC will also be responsible for marketing and systems operations and will also inherit Zesa’s US$400 million debt.
After the unbundling, the Government will remain the sole shareholder in the NGSC while the other entities will be open to private investment although the Government will have a stake in all of them.
The move is aimed at creating a level playing field for over 15 independent power producers licensed to assist in meeting the ever-increasing electricity demand in the country and to improve efficiency.
AfDB Zimfund manager Emmanuel Nzabanita told a breakfast meeting that the plan had worked successfully in other countries including Egypt and Ethiopia.
“This is an important step towards deregulating the power supply service in the country. It will unlock funding for the development of big Independent Power Producers in the country because under the arrangement, after the unbundling, companies that consume large amounts of power will enter into contractual obligations with suppliers which will ensure revenue inflows which will act as a guarantee to financiers for IPPs,” he said.
The Zimbabwe Energy Council organised the meeting. Energy and Power Development permanent secretary Partson Mbiriri told the same gathering that Government was committed to ensuring efficiency in the power sector.
“The restructuring is in line with Government’s mandate in providing power to the people. We want to attract bigger IPPs that compete with ZPC in terms of efficiency and power output that will be imported into the national grid,” he said.
Currently, Zesa has four subsidiaries, namely the Zimbabwe Electricity Transmission and Distribution Company and the Zimbabwe Power Company.
Other subsidiaries are investment unit, Zesa Enterprises, and internet services provider, Powertel Communications.
The proposed restructuring would be the third time for Zesa following its unbundling in 1997 and 2002. —New Ziana.
Online Reporter