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Grid Services Company which will be responsible for transmission of power, marketing and systems operations and will also inherit all of Zesa’s debts.
The move is aimed at creating a level playing field for over 15 independent power producers licensed to assist meet the ever-increasing electricity demand in the country and to improve efficiency.
Energy and Power Development Minister Elton Mangoma said all the companies to be formed would report directly to the Government.
“We are hoping that as soon as Parliament resumes sitting, it will pass the amendments to the Electricity Act which will then pave way for the disbanding of Zesa. The proposed amendments to the Act would take effect from December 2012 or January 2013,” he said.
“The whole process is expected to be completed in May or even earlier. This means there will be no more Zesa Holdings.”
Zesa has four subsidiaries, namely the Zimbabwe Electricity Transmission and Distribution Company, the Zimbabwe Power Company, investment unit Zesa Enterprises and internet services provider PowerTel Communications.
This is the third time that Zesa will be restructuring in recent years following similar endeavours in 1997 and 2002.
Of the proposed new business units, the NGSC would remain wholly owned and controlled by the Government. Other entities would be open to private investment although the Government would remain the major shareholder in all of them.
Zesa has a debt of over US$400 million accrued over the years due to a decade-long economic downturn which eased with the adoption of multiple foreign currencies in 2009, poor corporate governance and mismanagement prevalent in most parastatals. — New Ziana.
Online Reporter