ZESCO Limited is sourcing for an additional US$44 million to complete rehabilitation projects at both Kariba and Kafue Gorge power stations.
Energy and Water Development Acting Permanent Secretary, Oscar Kalumiana said government is ready to help the utility company source the funds adding that it aware that the company is unable to make profits because of the unattractive tariffs.
Mr. Kalumiana said this in Siavonga yesterday after touring the Kariba North Bank power stations with Members of Parliament.
He noted that electricity tariffs in Zambia and the Southern African Development Community (SADC) region needs to be revised as they are low adding that this was making it difficult for power utility companies to borrow from big multilateral lenders because they find the tariffs unattractive for investment.
Speaking earlier, ZESCO Director of Customer services, Teddie Mwale said ZESCO needs to invest US$3 billion in the coming years in order to contribute significantly to the growth of the economy.
Mr. Mwale noted that currently only 25 percent of households in the country have access to electricity adding that more investment needs to be pumped in the sector to enable more households have access to the essential commodity.
Mr. Mwale disclosed that ZESCO will this year bring down staff costs significantly to in order to enhance efficiency of operations.
And Kawambwa member of parliament, Elizabeth Mulobeka urged ZESCO to conduct more sensitization in Schools on the need for them to switch to energy serving devices in order to caution the current load shedding.
Meanwhile, a Member of Parliament has called on ZESCO limited to consider investing in thermal power plants to enhance its current generation capacity.
Namwala Member of Parliament, Robbie Chizyuka says the utility company would spend less money and time in generating power from thermal power plants than from hydro power given the readily available coal at the Maamba coal mines in Southern Province.
Mr. Chizyuka said this in Siavonga when Members of parliament from various committees toured the Kariba North Bank power station.
Mr. Chizyuka said it was clear that ZESCO was not going to resolve the current power deficit by merely rehabilitating equipment at power stations but that the utility company needs to investment money in establishing new power plants.
But ZESCO Acting Managing Director, Musonda Chibulu said ZESCO did not have money to invest in thermal power plants.
Mr. Chibulu noted ZESCO was currently not making any returns on investment because the tariffs were too low.
He however said ZESCO was ready to support and buy power from other utility companies like the Zambia Consolidated Copper Mines (ZCCM) who are thinking of investing in the thermal power plants.
And Mazabuka Central Member of Parliament, Garry Nkombo urged ZESCO to optimize the existence of mini- hydro plants for effective implementation of the rural electrification project.
He noted that there were existing power plants like the Itezi tezi, Musonda and Chishimba falls among others which if invested in would greatly contribute to ZESCO’s current generation capacity.
Mr. Nkombo, who is also the chairperson of the parliamentary committee on energy, further advised government to consider investing the money collected from the new mining tax’s in new power plants.
And Government will this year set up a US$6 billion Hydro Power Station at Chanda Falls in Chavuma District of North-western Province.
Energy and Water Development Minister Kenneth Konga says the new Power Station is expected to supplement the existing power generation of ZESCO.
Mr. Konga has however urged ZESCO to be forward-looking if the utility firm is to answer present and future challenges in the energy sector.
He says there is need for ZESCO management to plan ahead if the energy sector is to meet the current and future demands.
Mr. Konga was speaking in Chavuma district in the North-western Province when he toured the ZESCO local branch on his familiarization tour of ZESCO operations in the area.
The minister expressed disappointment that ZESCO authorities at the Chavuma ZESCO branch failed to avail him with the necessary data and future estimates.
Mr. Konga, who is Chavuma Member of Parliament, further expressed disappointment at the way ZESCO generators were being maintained in the area.
He cautioned ZESCO managers that government is spending huge sums of moneys on ZESCO operations hence the need to ensure generators and other installations are well looked after.
And Chavuma ZESCO Branch Mechanical Technician Alister Mtonga informed the minister that there was only one reliable machine in the entire district.
ZESCO makes me sick coz their bills sometimes makes me mad, their so called meters or guages what ever they call them are not working but how do they culculate the power consumed? they sld consider scratch cards so that a person is convienced of what they consumed in a month, and for you chi Kalumiana who told you electricity tarifs are too law in zambia, do you know how much a nurse or teacher gets compaired to what they pay to ZESCO in a month? stupid man you jst recieve free power from zesco.
Zesco naipwa fye its finished…..
Stories all the time no progress at all.
The load shedding is only for the poor in society its so unaffair.
Kano ukuifolesha ama 80million allowances ba pamwmba..
Morre clearly needs to be done ZESCO. 25% of households accessing your power currently is too low.
On the otherhand, thank you GRZ for the Chanda Falls porject. Continue with efforts that will boost the nations capability to improve the now-better-performing economy.
These chaps in ZESCO!, why is it that they are among the best paid guys in the country if the tarrifs are too low?
When the tarrifs will be raised they will first think of raising their salaries before upgrading the equipment.
Zambia is really a very depressing country. Reading the comments of the MPs and other officials in this article you will get a measure of how doomed Zambia is.
1.It’s either the PS is lying or does not know what he is talking about. The govt and Zesco have sold us the idea that ZESCO has shut down two generators at Kariba to facilitate repairs and boost generation capacity by 2009. Now the PS is telling us that they are still scouting for $44m for this job!
2. No one in his right mind can lend Zesco money. Zesco is not a commercial business. Its accounts are secretive only known by the management and a selected people in government.
The so called chanda falls does not exist. And $6 BILLION from the same people failing to raise $44 MILLION for the rehabilitation of existing generators at Kariba! Why do I feel like my intelligence is being insulted? I think this guy is talking about a mini-hydro power plant at Chavuma falls expected to generate about 2.6 MW. It is expected to cost 6 MILLION US dollars!
#1. An electricity prepaid system is already in place in Emmasdale. I am sure it will reach you in good time.
How much is Zimbabwe contributing to the rehab for Kariba Dam. We cant pay the whole bill then Zimbabwe reaps the fruits, they also have to pay something.
this is where big business should come in. I’m talking about the likes of Zambia sugar, the most powerful listed firms in the land who also happen to be the biggest consumers of energy. the likes of Zambian breweries, gentlemen where are you? pressurize ZESCO to list at least 49% on LuSE, ZESCO can not listen to small people in the township, they can only start pulling their rocks if big business start pushing them.
#1
Prepaid is already available at ZESCO. And if you dont like the bills, you might as well go buy a solar panel. A cheap good solar panel costs at most $25.00. With a solar panel you want have to worry about any bills. That will solve your problem instead of always lashing at govt. Also if you dont want to pay for water, you can go put up a water tank in your home. Just a suggestion. Instead of barking like dogs, perhaps we should be finding solutions to the problems, just for a change.
Zesco should have first channeled those billions they spent on the optical fiber network towards rehabilitation. I am saying this because Zamtel another Parastatal is laying and improving its bandwidth. Its like there is confusion in Zed, Why rush to lay optical fiber which might not bring revenue to the company but maybe reduce costs when Zamtel which is equal to the task moreover it depends on them for its Power is capable of doing a better job. Us the consumers will be made to suffer again. That money spent on the optical fiber might bring benefits to the company but had it been spent on rehabilitation projects at both Kariba and Kafue Gorge power it would have brought more benefits to
the company, consumers and Country
Good call.
A solution can be to sell 51% to members of the public and let the share holders vote for company’s president annually, yes… That’s how to get leaders to get down to work.
Good one Zulu83 #14 But annual will not be fair. maybe maybe a three year term for a manager can be fine
No way !!we cant sell 51% its only in management and professionalism where are failing and not ownership.We can sell everything countrymen.
#8 Zimbabwe has nothing to do with your generators. Each country has its own set of 4 generators capable of generating 600MW of electricity each on either border. Zambia wants to boost the capacity of her generators by 120MW to 720MW. To do this Zesco has shut down two of its generators. They are expected to come on stream early next year-2009. Enough said….leave Zimbabwe out of your problem they already have enough problems on their hands!
Ba Sata that’s why he opted to be flown to SA coz of chi-Sisala ci-family tree cakwa CHUCHU. Imagine HE MC SATA under operation and power cut off coz of ci-sisala. it wouild have been a life loss.
Latest
HE SATA WILL BE FLOWN TO ZED TOGETHER WITH DR KASEBA AND GIVEN LUBINDA.HE WILL FOOT BACK ALL THE EXPENSES TO GOVT.
Mwaice HK
WECHUSHI WEE!!!!FUMBAFU, KALINGONGO MULALA KWACENAMA.
WE NEED AN AXE TO CHOP DOWN FAMILY TREE…WE ARE ALL FEEDUP WITH THIS NONSENSE THAT IS MAKING ZED A DARK COUNTRY..SHAA, ATANSE MUKWAI!!!
Choma1 #16
I’m talking about public ownership not foreign ownership. look at how MTN is breaking grounds.
# Zulu 83 i get your point and I am feeling you all the way.Zulu 83 why dont we zero down on Zesco s real problems first and the if there will be need to raise funds then we can sell the 51 %you want the Zambians to buy.I can assure you that as at now the real problem is not lack of capital but management and professionalism this has to be sorted out first.
President Mwanawasa has been working hard to make things happen for Zambians with available technocrats in the country. The support he could be given in realizing his vision for the country is to step in. Shortly most of those institution will be heading for their better managed days.Just reminding all those that have failed to deliver, we have organized ourselves in columns of experts with diverse specialization and skills. Don’t blame the administration. You are bound to lose your jobs shortly as we come to fill in and move the country forward in a program called “The Great Leap Forward” with a Zambian centric capitalistic characteristics.
Talk is cheap.Most of these institutions they pay beyond what some jobs Zambians land in the Diaspora.Rather than remittances made, service gains from our education is rendered to already developed nations with vast expertise.But stepping forward to the Zambian challenges after education and skills gains, Zambians will not only be making impeccable vestures but also contributing towards common good in vision ““The Great Leap Forward” with Zambian centric capitalistic characteristics.
ZESCO is a reflection of poor leadership by LPM and his incompetent team. All those praising LPM are simply citizens without any vision or sight. With all examples around us showing how poorly ZESCO is handling national issues, how can anyone praise LPM and his nepotistic appointments? The fact is that ZESCO worships foreigners, this is why you never hear foreigners and their mines complaining about power. ZESCO and LPM simply are too brainwashed to improve the lot for Zambians.
With poverty noted at being over 70% of our citizens, how does any sensible Zambia claim that such people would have productive tools to become capitalists? And who said that capitalism was the answer to our miserable nation? What is wrong with a mixed economy? Why would anyone seek to place greed at the centre for national development? Sad that the so called Zambian capitalists are not made from genuine clean business practices, but from sucking from public funds, and organs to siphon money from public office to LuSe. This is why the Auditor General is always clueless as to where the funds have gone from grz departments!
Mr. Konga said there is need for ZESCO management to plan ahead if the energy sector is to meet the current and future demands.
He was speaking in Chavuma, when he toured the ZESCO local branch on his familiarization tour of ZESCO operations in the area.
#10 crazy_zambian you are a real dog baking on the door of ZESCO mgt houses, as pipo verbalise on reall issues dont bring your trash, you are too dull my dear. The world is going ahead and you want to take as behind, if we use solar panels in town what are they going to use in villages, think before you pass your flatus.
how much will this animal called ZESCO “source” for projects….every 2 months horrific figures are being reported as being borrowed or arranged for ZESCO!!! what kind of collateral does this “insatiable” company have to guarantee these loans??? does this company hope to make any money with all the loan repayments it will have to make ????
Where has all the money been going? ZESCO has been collecting money from people for years and one has to wonder what they have been doing with the money if they have not been able to simply “maintain” the facilities.
#28
Perhaps you should see my comment again. I was simply trying to find a solution to his problem. He said the bills are expensive, i told him an alternative. My alternative is since he does not want to pay bills, he might as well get solar panels. With solar panels they’ll be no worries with bills as its a completely renewable energy resource. And how is using solar panels dwelling in the past. As far as im concerned, they where no solar panels in the past. For your own information, solar energy is now being tested so that it can be an alternative to energy since the world is crying “foul” about global warming.
cont…
Not everyone has got access to vast amounts of water to put up a dam, so they have to find alternatives to energy since coal power plants are not good for the environment and nuclear energy is hazardous to health, so people are resorting to solar or wind energy, some parts of Israel use solar energy, i thought this would be so obvious to you since you’re so intelligent.
#17
Thanks for the info…
ok point taken
Mr Chibula’s comment that “ZESCO was currently not making any return on investment because the tariffs were too low” is as stupid as the manner in which ZESCO is run. Even a fool would calculate a breakeven supply percentage. The type of service zesco offers is pretty much the same as super markets, etc such walmart (USA), spa (SA), TESCO (UK), ALDI (Germany), McDonalds (USA), British Gas (UK) to mention but a few. The simple principle with say, super markets is “pile it high and/but sell it cheap”. With this business principle supermarkets sell to millions of consumers per day and make (huge) profits. Along the same line, service providers of gas or/and electricity make (huge) profits…
…Collection of information about consumers and to-be-consumers for short and long term planning is part of excellent business practice. The same information can be used to determine trend/pattern of consumption. 40 years of Zambia’s independence, Zesco to provide their service almost to the whole population of Zambia. One is at loss to think that zesco provides the service to only 25% of the population of Zambia. This is the % (25) which is supposed to be without power. Electricity tariffs in Zambia are too high as compared to other countries in this region. This is because even those on social support, and unskilled labourers can afford it. In Zambia a teacher cannot afford it. ZESCO…
…mgt must wake up from their and work to provide electricity to at least 60% of householders. In fact as one blogger has already pointed out, it is foolish for ZESCO mgt to spend funds on laying fibre optics which should be the direct responsibility of Zamtel. That money should have been spent on widening consumer base. Even if ZESCO increases tariffs by 1000% they will still never make any profit. To the contrary, they will make more losses as consumers may find themselves withdrawing from the service.
ZESCO, needs just more than US$44m. But, also a new set of top mgrs equipped with business decision-making capabilities who will fully be responsible for their decisions they make…
…A member of parliament has called on ZESCO to “consider investing in thermal power plants to enhance its current generation capacity”.
This member of parly is really very backward with issues concerning greenhouse gases. The whole world (apart ffrom China) is turning to other form of energy and yet one of our rulers is thinking oppositely. ZESCO must research into and start implementing other renewable forms of energy such as solar, wind, etc. I dont know is this idea coming from China where they are building thermal power everywhere everyday increasing on already polluted country. If you have had an opportunity to see some of the pollution documentaries in China you wouldn’t even…
…dream of carbon emmition related energy.
Zambia must take a leaf from Botswana where solar energy is extensively used for lighting and heating, gas is used for cooking. Coal is also highly domesticated. Coal is pre-packed into smaller packages say, 12kg, 25kg, etc, and bought by householders for cooking. Zambia’s Maamba Coal Mine can also expand their consumer base by selling coal to householders. This can even greatly cut on depleting our forests in the name of cutting trees for charcoal. Which I think is again becoming a serious source of concern. Although the GRZ is again giving it a blind eye.
just call my personal secretary
+445102698756
and i will give you that money!!
Zambia’s carbon foot print is zero, and as such we can afford to invest into coal utilization. The problem we have right now is that we have lawyers at the top whose vision is only onto statutes instead of real, achievable technical systems to propel zambia forward with our God Given resources.
I wonder why travellers via Kazungula are forced to pay Carbon Tax by the GRZ when travellers elsewhere into our airports are not charged carbon tax. It is like airplanes do not produce carbon gases! I guess with brains wound up around hooligan law enforcement, it is no surprise that there appears to be no sense or basis for carbon tax at Kazungula other than to defraud travellers of their money.
Many brains can be confusing! just like too many cooks!! ZESCO asks for loans and money every year-in Forex for that matter. At the end of the day, they increase the Tariffs. Really, when will these expansion programs provide the services that will benefit Zambians? South Africa, which has more households than Zambia and Zimbabwe combined is not borrowing at this rate. Can Anti-Corruption look into this expensive Company? Please let the wise sniff through the books and the expenses. Who knows, a ‘black hole’ might be found at the back of ZESCO offices-Basilupampu amugwase kaka ndakomba
How do you guys expect the Mwanawasa family to make money if not through Zesco? How do you think Maureen is able to dress nice? It seems some of you guys did not hear that ZESCO is now family owned. Ask Sisala or Levy. Do you think Mwanawasa would have kept someone else at ZESCO with all these problems if not a family member? ZESCO does not need all the money they are asking for, all they need is change at the top. Simple. We did that when we saw the UNIP government failing in the excution of their duties, why we have failed to do so with a smaller entity like ZESCO? That really bothers me.
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