GOVERNMENT has given Zesco US$255 million from the US$750 million Eurobond to invest in power generation and distribution.
Of the US$255 million, US$30 million has been invested in the Itezhi-tezhi hydro-power station with an addition US$60 million expected to be invested in the same project.
Minister of Mines, Energy and Water Development Yamfwa Mukanga says Government is committed to ensuring that the country has reliable power supply to spur economic development.
“We [Government] have given Zesco US$255 million because Government wants to see how best Zesco will execute all these projects. We are together and we want to ensure that as a parent we provide for our children,” he said.
Mr Mukanga said this in Siavonga when he toured the Kariba North Bank hydro-power station on Thursday.
The minister said Zesco is on course by undertaking power generation projects and Government will ensure that the Kariba North Bank and Itezhi-tezhi power projects are completed within the planned time frame.
Mr Mukanga also said Government will ensure that Kafue Lower hydro-power project is completed when the Patriotic Front is still in power.
He said Government has been assisting the power utility firm and the proceeds from the sovereign bond is one of the assistance it has provided.
Mr Mukanga, who was happy with the progress made at the Kariba North Bank power station, however, said Zesco needs to prove to the country that it is capable of delivering quality service.
“You are doing a good job but the job is not good enough. You need to prove to the public that you can provide reliable energy.
People are in a hurry to have reliable energy to develop various economic projects,” he said.
He also said the institutions and members of the public should support efforts aimed at providing reliable power by ensuring that energy is conserved.
“We cannot have 1,000 bulbs on, at the same time, in the same place and expect to save power,” he said.
At the same occasion Zesco managing director Cyprian Chitundu said apart from the Eurobond proceeds, the power utility has also obtained finance from among other institutions, the World Bank, European Investment Bank and China Exim Bank to undertake power generation, transmission and distribution projects.
Mr Chitundu said the firm remains committed to undertake power projects as this is key in spurring economic development.
He said the power utility will also ensure that it saves on costs as it undertakes power projects developing existing power stations.
Zesco has spent US$ 80 million on the addition of 90 megawatts (MW) on Kafue Gorge power station when it would have spent US$270 million if it had developed a new project.
The firm has also spent US$420 million on the 360 MW Kariba North Bank extension project when the company could have spent more than US$1billion.
So that’s $120m ZRL + $50m DBZ +$30m UTH + $255m Zesco = $455m what of the remaining $295m??
ZR was given an additional $50 million. So we should expect to hear more for the balance of $245 million. Good job.
In what is supposed to be high class management, how does a minister describe Govt – ZESCO relationship like Parent – Child relationship? ZESCO must be able to stand on its own as a service provider offering no free services! Or maybe the $255m is just for settling ZESCO Bills accumulated by Govt.
the rest is in pf pockets. can’t you see how they are travelling and ev getting a certificate for $20000.00
Oh, I forgot about some going into Munkobwe’s pocket and belly. i like the old man because he is honesty enough that they all go into politics to eat.
Energy is a key sector for national development. The country is catching up on lost time. From now on, there must be no loss of focus on growth and trends in energy sector in the country. Loss of focus is tantamount to criminal negligence.
GRZ just paying back what was plundered out of zesco by previous governments.
Zescolo ya leta mapolo ka
We need to dismantle ZESCO, let generation, transmission and distribution be separate companies in order to improve service and efficiency that is currently lacking.
We cant keep pumping money into ZESCO on top of their exorbitant bills and yet their services are mediocre.
GOOD JOB BOMA .LONG TERM PLANNING .YOU WILL REAP AFTER YEARS .
Countries get such loans to invest in income generating activities but luks like we are nothing but consumers…we could have used some of this money in establishing new GRZ mines and generate income to pay back and then use the profits to develop until we take over all the mining rights in our country…use the law to reverse the sale of mines as there were flaws in the way mines were privatized by FTJ..Such level of borrowing if not well used will lead to more debt which in turn will lead to the KK error of international debt..
Infact mines are almost using zesco power for free…solution will be to let the mines produce their own power source which in turn will supply every one residing within 450m radius cfrom the mines…second issue to address is pollution (land,air and water) with strick measures and punishments or am afraid our mineral reserve may run dry and this so called investors will soon leave our land
Nice
Since these are borrowed funds, let’s hope Govt has agreed on some repayment plans with Zesco and ZRL.
A situation should not arise where Zambian tax payers will continue subsidizing the mines, who for all intents and purposes will be the main beneficiaries of this govt investment in Zesco ,through ridiculously uneconomic electricity tariffs.
Two observations; firstly we were actually informed that it was $30 000 to UTH and $50 000 to DBZ and we questioned the magnitude of those figures. What are the true figures? Secondly, I agree with @Namona on this Parent – child relationship. For as long as politicians in government feel they are our parents, they will always want us to respect them like parents and be grateful for what they do for the nation and yet that is what is expected of any one who goes into goverment. To serve and be questioned when the performance is sub standard. This paternalistic attitide politicians have is out dated and belows to yester years.
Two observations; firstly we were actually informed that it was $30 000 to UTH and $50 000 to DBZ and we questioned the magnitude of those figures. What are the true figures? Secondly, I agree with @Namona on this Parent – child relationship. For as long as politicians in government feel they are our parents, they will always want us to respect them like parents and be grateful for what they do for the nation and yet that is what is expected of any one who goes into goverment. To serve and be questioned when the performance is sub standard. This paternalistic attitide politicians have is out dated and belongs to yester years.
ZESCO SHOULD BE MONITORED CLOSELY SO THAT THEY DONT SPEND THIS MONEY ON SALARIES & WAGES. THE WAGE BILL ON ZESCO IS THE HIGHEST IN THE COUNTRY. INFACT BENIFITS FOR MIDDLE AND TOP MANAGEMENT NEED TO BE LOOKED INTO BY GOVERNMENT. THE TAX PAYER IS BEING RIPPED OFF AT ZESCO
ZESCO SHOULD BE MONITORED CLOSELY SO THAT THEY DONT SPEND THIS MONEY ON SALARIES & WAGES. THE WAGE BILL AT ZESCO IS THE HIGHEST IN THE COUNTRY. INFACT BENIFITS FOR MIDDLE AND TOP MANAGEMENT NEED TO BE LOOKED INTO BY GOVERNMENT. THE TAX PAYER IS BEING RIPPED OFF AT ZESCO
what is ka 30 pin for a hospital . . .