ZETDC owes ZPC $558m

ZIMBABWE Power Company (ZPC) managing director Noah Gwariro yesterday told Parliament the power utility was owed $558 million by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a situation that has delayed expansion of power stations.


Gwariro made the disclosure when he appeared before the Parliamentary Portfolio Committee on Mines and Energy chaired by Gutu Central MP Lovemore Matuke (Zanu PF) to speak on the power generation status in the country.

“As at February 2015, ZETDC owed us $558 million and the majority of the debt is over 120 days, and non-payment of this debt has resulted in ZPC not paying suppliers,” Gwariro said.

“This has increased our operational costs and has negatively impacted on the rehabilitation of plants.”

Gwariro said ZPC had engaged ZETDC to take measures to increase collection of electricity bills, adding ZETDC creditors were being ranked in order of priority, discounts being given for off-payments, and negotiable payment plans being offered.

He said some of the challenges ZPC faced in increasing power generation capacity at different power stations like Hwange, Kariba, Harare, Bulawayo, Munyati and Kariba were archaic equipment, unreliable boilers, scaling down of tubes causing leaks and high costs of refurbishment.

“Most of the power generation plants are fairly old and by normal power industry standards, plants are supposed to go up to 25 to 30 years. We have challenges of tube leaks, but we do chemical cleaning to address scaling of tubes. We also have a problem of feed heaters that are not operational,” he said.

The committee was also told that the whole nation required 2 200 megawatts per month against a current generation capacity of 1 365 megawatts, thus creating a shortfall of 800 megawatts.

“Hwange has generation capacity of 920 megawatts, but what is available is 650 megawatts. Kariba has capacity to increase to 750 megawatts from current 660 megawatts. Bulawayo has capacity to realise 90 megawatts, but was currently at 26 megawatts. Harare can generate 75 megawatts, but is at 30 megawatts, while Munyati is generating 100 megawatts when it has a capacity of 120 megawatts.”

He said Hwange plant rehabilitation would cost $500 million, Harare Power Station refurbishment would cost $103 million, Bulawayo $144 million, Munyati $158 million, Hwange $41 million Gairezi Hydro Power Station $162 million, adding the solar project to enhance generation would cost $847 million, while Mutate would cost $159 million.

The high cost of coal was said to be one of the challenges faced by power generation plants as well as shutdown of water by local authorities.

MPs raised issues of dubious tender procedures in awarding contracts and use of clean water at generation plants when most suburbs lacked clean running water.

Gwariro said all tenders went through the State Procurement Board and were above board.

6 Responses to ZETDC owes ZPC $558m

  1. muZimba February 17, 2015 at 9:15 am #

    saka residents do not owe bulk of debt, its parastatals that do not pay their bills

  2. josi February 17, 2015 at 10:44 am #

    ndopavanodhuvira apa vanhu vakatora simbi dze Zetdc mashefu apo havabhadhare on time ,apa Zpc yakatarisirawo mari yayo ,vanoputsa mashefu iwawa ,nxaaa ngavaende kupension

  3. Doperelpland52 February 17, 2015 at 10:51 am #

    up to I looked at the paycheck for $7539 , I be certain …that…my brother woz actualey earning money in there spare time at there labtop. . there mums best friend haz done this less than twenty two months and by now repayed the mortgage on there appartment and got a new Smart ForTwo . you could look here………..w­­w­­w.J­­o­­bsy­­e­­l­­p.c­­o­­m

  4. TOREZ February 17, 2015 at 4:31 pm #

    ZPC, ZETDC AND TRANSMISSION COMPANY should be recombined back to one company, ZESA yataiziva kare. This idea of unbundling in to so many different entities results in many CEOs, MDs, Directors, managers for each and every entity and more money is chunked out for them.

    • Garikayi February 17, 2015 at 5:04 pm #

      These is also Zesa Enterprises and a million consultants working for these companies. These CEO, COO, CFO, MD, Directors of this and that, Regional Managers, District Managers, Senior Engineers etc..most of these guys have no clue how to run such a small company like a combined old ZESA. If ZPC is owed over half a billion In God We Trust Money why don’t they not supply the product that ZETDC then sells?? The incompetency goes unchecked and then we hav a minister, an energy committee etc. The assets that are left are the ones that were there before Cde Mugabe and company began their looting..time is catching up with their lack of planning. When is ZETDC scrapping our electricity bills againd?? Especially for the bosses

    • Timothy Nanda February 18, 2015 at 6:23 am #

      Couldn’t agree with you more! Creation of unnecessary bureaucracy, inefficiencies

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