Zesa, Dinson sign power line agreement

Kudzaishe Muhamba-Herald Reporter

THE Zimbabwe Electricity Transmission and Distribution Company has signed a plant & design-build agreement with Dinson Iron & Steel Company(Private) Limited as the employer and TBEA Company Limited as the contractor for the construction of the 330kV, 100km power line from Sherwood, Kwekwe to Manhize, Chivhu.

This is part of broader efforts to increase the capacity of Zesa to meet the demand required in the mining sector, which now has a 2100 MW capacity demand.

Speaking at the signing ceremony, Zesa Holdings executive chairman Dr Sydney Gata said it is now clear, because of demand, that the mining sector will become a US$12 billion industry by 2023. The minister responsible for mining announced two years ago that we are going content with a US$12 billion mining economy, some did not believe that forecast but here in the electricity supply industry, we have come to terms with the implication of that projection.

“In the last 12 months we have entertained applications for new capacity and new supply of electricity demand aggregating to 2 100 megawatts from mining and smelting industries only,” he said.

Dr Gata said the US$12 billion mining economy gives impetus to Zesa to extend capacity, both in transmission and generation, to meet demand.

“Today we are witnessing a first of its kind Private-Partnership Investment Structure which we are endorsing by appending our signatures to the agreements and the contracts which implement that structure.

“This is new to Zimbabwe and important to Zesa in that the private sector is bringing in the resources to enable the expansion of our system in order to supply their demand,” he said. Dr Gata said without the intervention, Zesa would face challenges to invest in the transmission facilities necessary to supply the 100 megawatts required.

“This agreement expresses confidence in Zesa and Zimbabwe and its economy, this project is important in many more ways than being a customer of Zesa. We will start off by serving more than 100 megawatts worth of electricity to the steel industry in Chivhu,.

Dr Gata said Dinson Company had plans to expand production up to 5 billion tonnes of steel.

“That will have implications on Zesa being required to supply 500 megawatts to just one customer.

“To put that into perspective this is about one-third of the normal consumption levels in Zimbabwe today. This is a massive contribution to Zesa and with the structure endorsed today we feel confident that we shall together have the capacity to supply that demand.”