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The power utility owes Hydro Cahora Bassa of Mozambique $76 million.
It also emerged yesterday that Government owes various parastatals including Zesa Holdings and private companies over $170 million for various services rendered.
Government claims poor revenue collection is affecting its ability to clear the debts.
On the Zesa Holdings debt clearance strategy, Energy and Power Development Minister Elton Mangoma, yesterday confirmed the money would be paid this week.
He declined to disclose the amount Government was prepared to pay.
However, Zesa sources said the power utility had raised about $36 million.
The sources said the response from domestic and commercial consumers following massive disconnections was “quite positive”.Minister Mangoma said the move would see the country receiving uninterrupted power from its external sources.
“We have made tremendous progress to reduce the debt as per their demand. The money will be paid this week to ensure constant supply. I cannot tell you the actual amount we will pay but we are close to meeting their requirements. There are still one or two things to be finalised but I can tell you that we are almost there,” he said.
Mozambique has agreed to ensure uninterrupted power supply in the interim if Zimbabwe reduces its debt to below $40 million.
Minister Mangoma said it was impossible for the country to clear the debt “at once” and the balance would be paid in installments.
He said Zimbabwe was committed to settling the debt and disconnections would continue.
“Where will the money come from? We are not able to offset the debt at once as the economy is struggling and we will continue mobilising money through various forms which include disconnections. Our wish is to clear the debt and we will continue working flat out to solve our problem.”
Domestic and commercial electricity consumers owe Zesa Holdings about $550 million.
Most residents, especially in high density areas, are going for almost 10 hours per day without power.
The situation has been worsened by malfunctioning units at Hwange Thermal Power Station and Kariba Hydro Power Station.
Zimbabwe requires about 2 200 megawatts daily, but generates only 1 300MW.
The remainder is met through imports from Mozambique, Zambia and the Democratic Republic of the Congo.
The country is getting 25 MW from Mozambique.
Industrialists and residents last week said Zesa Holdings has a poor debt management system that has seen it failing to recoup the money owed by its customers.
Industrialists warned that unless Zesa Holdings implemented the prepayment system, it would be difficult for the power utility to offset foreign debts.
Zesa Holdings has no clear debt collection strategies other than the “unpopular” disconnections.
Farmers’ unions recently argued that they could not pay Zesa bills monthly given that they receive their payments once in six months.
Some of the farmers who reportedly owe Zesa thousands of dollars have a thriving crop worth millions of dollars on their farms.
Meanwhile, Finance Minister Tendai Biti yesterday told journalists that as at 31 March this year Government revenues had a shortfall of $58 million from projected collections while expected diamond revenues had fallen short by $92 million since the beginning of the year.
“We as Government have to deal with the debt we owe to the manufacturers of seeds and fertilisers.
“We owe them close to $40 million and also $20 million to Zesa and $20 million to Zinwa while NetOne is owed $60 million and TelOne $30 million,” he said.
Minister Biti said Government debt to the companies and utilities was affecting service delivery and performance of the productive sector.
“The extent of our debt is huge and it is killing our productive sectors. What we are doing as the Ministry of Finance is that in the next few weeks we will try to mobilise resources so that we try to do something to liquidate our domestic debt,” he said.
Actual revenue collections for January and February stood at $488 million against targeted inflows of $549 million.
Inflows from diamond sales amounted to only $19,5 million against a projection of $77 million as no auctions were conducted in January and February.
Government expects to collect $600 million from Marange diamond sales this year to boost its coffers that have been weighed down by a huge civil service wage bill.
Online Reporter