adminAddressing stakeholders during the Medium Term Plan progress review meeting in Bulawayo yesterday, the Permanent Secretary in the Ministry of Economic Planning and Investment Promotion, Dr Desire Sibanda, said power generation was a major impediment in attracting investment in Zimbabwe.
He said efforts were being made to engage the private sector to partner with the Government through leasing out power stations but indicated that few investors had shown interest.
“The issue of power generation is our number one challenge and we need independent electricity producers. We invited tenders to lease out thermal power stations but there were no takers because of the liquidity problems,” said Dr Sibanda.
“People were not forthcoming save for few foreign investors. According to the MTP, leasing of the smaller thermal power stations should have been completed by 2011.”
Dr Sibanda however, said power generation was capital intensive and vowed that the Government would continue to lobby investors to participate in the sector.
He added that agreements with the few that had shown interest would soon be implanted.
“To date a Memorandum of Understanding (MoU) for the lease of Munyati Power Station has been signed with Essar as of the first half of 2012. In addition, the Gokwe North Hydro Power Project will be implemented on an Independent Power Producer (IPP) model with Sengwa Power Station Company. The company has since been granted a generation licence,” said Dr Sibanda.
“The MTP reiterated that ensuring adequate, reliable and predictable supply of good quality electrical energy for driving the economy remains the primary focus. The objective is to restore and increase power generation capacity to meet national demand for the attainment of economic recovery and growth of exports to the region.”
Meanwhile, stakeholders commended Zesa for introducing the pre-paid metre system saying the move will go a long way towards saving power.
Online Reporter