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Zesa Holdings says it will carry out a study to ascertain the amount of funding that is required for distribution infrastructure projects. Spokesperson Fullard Gwasira said the power utility is certain on the amount of funding required for transmission infrastructure, but has no scientific evidence of the funding it will require for power distribution projects.While a figure of $500 million has often been cited, Mr Gwasira said this emanated from proposals presented by contractors in terms of the cost they are willing to undertake for the distribution infrastructure project works.
“A study needs to be carried out in terms of how much is required for distribution infrastructure. What we know (with certainty) is that $200 million is required for transmission infrastructure projects,” Mr Gwasira said.
The power utility is also yet to determine what model it would use to finance the capital intensive projects as such programmes have shorter payback period.
While funding remains the biggest stumbling block to planned projects, the utility is owed over $1 billion in unpaid bills of power used by customers.
Mr Gwasira said there is need to put in place backbone infrastructure in various urban settlements being built around the country and these included low voltage power lines, transformers and strengthening cable joints.
Unconfirmed estimates say the power utility loses 20 percent of scarce power generated internally or imported from the region to faulty transmission and distribution infrastructure, but Zesa says the figure is below 4 percent.
The state-owned power utility also needs $200 million to implement close to 138 new electrification projects in the country. It is expected that the projects will connect 102 000 people to the national electricity grid.
Zimbabwe Electricity Transmission and Distribution Company, a unit of Zesa, has to build the backbone infrastructure, which constitute the power lines.
Zesa has been working on projects aimed at expanding electricity generation to bridge the gap between supply and demand.
These include expansion of Kariba South Power hydro power station, Hwange thermal power station and rehabilitation of three small thermal stations.
Zesa is also working on emergency power plants and solar projects to improve power availability. Zimbabwe is facing a deficit of 400MW against a peak demand of 1 400MW.
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