Chronicle Editor
Fairness Moyana in Hwange
LACK of funds to procure spare parts and equipment to repair aging machinery continues to be a stumbling block in terms of energy sufficiency, Zimbabwe Power Company (ZPC) management said.
Responding to inquiries from members of the Parliamentary Portfolio Committee on Mines and Energy on a tour of Hwange Power Station last Wednesday, ZPC general manager, Engineer Shepherd Mukundu said the power utility is facing challenges in terms of procuring new equipment due to high costs from manufacturers.
“I think we have two major challenges with the proprietary equipment that comes from the original equipment manufacturer. It’s a patented technology, not commercialised and it’s protected by patents of those designing equipment and is not off the shelf,” he said.
“So, you will find that in the power generation industry, most of the major spares are better in terms of performance and if you need them you have to go back to the original manufacturer and that has been the trend.
Eng Mukundu said despite the challenges, the company is seeking alternative remedies that include scouting the Asian market.
“However, with the current Look East policy that was adopted by the Government and also the economic boon in China, we see developments where certain equipment can also be manufactured for us,” he said.
Eng Mukundu said while the alternatives were bringing the much-needed reprieve, the equipment used at the power station requires the original manufacturer.
“One of our biggest challenges with proprietary equipment is that it becomes very expensive. You have no alternative so they charge you an arm and a leg and lately, that has been the trend,” he said.
The ZPC management told the legislators that the company’s revenue collection, which was between US$50 million and US$55 million was not enough to service its debts as well as operational costs.
The power utility also collects around ZiG300 million and spends between US$20-25m per month on imports to augment the increasing power demand. Zimbabwe’s power pool has an installed capacity to produce 1 700MW against a peak demand of 2200MW.
The government has since suspended duty on power equipment including critical spares and transformers imported by Zesa Holdings subsidiaries to ease the challenges bedevilling the power utility in the procurement of critical machinery.
The two-year suspension, which was announced under Statutory Instrument 93 of 2024 cited as Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 272) published in the Government Gazette is set to benefit Zesa Enterprise (Zent), Zimbabwe Electricity Transmission and Distribution Company (ZETDC) and Zimbabwe Power Company (ZPC).
Notably, Zesa has suffered from vandalism and theft of some of its infrastructure particularly transformers leading to a loss of thousands of dollars. The duty suspension is expected to lessen the replacement burden. The giant station is operating below capacity with other remaining units also not working efficiently due to incessant breakdowns.
Most of the equipment is over 35 years old and yet the design lifespan of a power plant is 25 years.
The MPs also demanded to know how the power utility was awarding contracts and protecting itself from being fleeced.
Eng Mukundu said there were remedies in the contracts that were meant to administer tenders and protect the company from loss.
“On the tender performance ideally, there are many guidelines on how we administer them largely under the regulator, Praz . There is an Act that is administered and there are requirements for every purchase we make, which must lean towards what the Act says,” he said.
“So, there are remedies inside the Act when it comes to the performance of tenders because we are also required to have contracts and within those contracts, there are remedies that must protect that organisation, should the purchase not go through or well.”
Online Reporter