Residents propose shareholding for Bulawayo Power Station

Vusumuzi Dube, Online News Editor

BULAWAYO residents have suggested that the Bulawayo City Council should enter into a Memorandum of Understanding with Zesa for a shareholding ownership arrangement for the contentious Bulawayo Power Station.

The Bulawayo Power Station has over the years been subject to a back-and-forth tussle between the two entities with the power utility reneging in the payment of royalties to the local authority who claim 100 percent ownership of the power station.
At one point the power utility also produced title deeds of their own which were challenged by BCC officials. The local authority has claimed that the power utility owes them US$60 million in royalties.

Last month, the local authority undertook resident consultations throughout the city after Zesa had implored that the two entities enter into an MoU for the commencement of negotiations on the status of the power station.

According to the latest council report, the local authority tabled four possible solutions to the impasse; complete disposal of the power station and other infrastructure, maintaining the status quo, shareholding, and cancellation of the current agreement with Zesa.

“As shown by the summary of the consultation, 28 wards were consulted and the Bulawayo business community as well, while one ward was not consulted. The general consensus was on option three for shareholding as 16 wards voted in favour of the option.

Discussion ensued and his Worship the Mayor (Councillor Solomon Mguni) applauded both the policymakers and residents of Bulawayo for partaking in matters that concerned them and for also ensuring that the City’s assets were safeguarded. Clr Tawanda Ruzive concurred,” reads the report.

Last year, it emerged that the power utility tried to push the local authority into transferring the power station ownership before any negotiations through the signing of a Memorandum of Understanding, which the local authority rejected, noting that they would not have any leverage when conducting the negotiations once they hand over the site.

According to a copy of the proposed MoU, gleaned by this publication, its purpose is to irrevocably undertake to conclude the negotiations on the transfer of ownership of the land, power generation and associated infrastructure in a manner that will not prejudice or disrupt the implementation of the rehabilitation project.

“The parties hereby record their understanding that Zesa is ready, willing, and, irrevocably committed to negotiating compensation to BCC in a manner, amount, and at times to be determined through negotiation between the parties. Within 60 days from signature of this MoU, BCC shall submit a comprehensive compensation proposal to Zesa, which shall include, where the form of compensation is sounding in money, the sum total of the compensation amount, a breakdown of the compensation account, method of settlement, tenure of compensation and any other administrative information as may be ancillary or related,” reads the draft MoU.

According to Zesa Holding’s website the Bulawayo Power Station is connected to the national grid through the 11 kilo-volt and 33-kilo-volt systems.