Government says North Western Province will only acquire meaningful development once it is fully connected to the national electricity grid.
Zambia Electricity Supply Company (ZESCO) Managing Director Cyprian Chitundu said the company is spending over US $8million to run diesel electricity generators.
Speaking during a cocktail celebrating the US$ 165million financing for the North Western Province grid extension project Mines on Tuesday, Energy and Water development Minister Christopher Yaluma said though North Western Province has huge economic potential it has remained under developed due to inadequate and unreliable power supply.
Mr. Yaluma reiterated government’s commitment to improving the foundation for economic and social development and observed that reliable and adequate power supply is a fundamental element.
He said the grid extension will benefit the people of North western province as a reliable and cost effective power supply will help open up the great economic potential of the province.
“Given the great potential for economic development that North-Western Province has, operating a reliable and cost effective power supply from the national grid will benefit the residents in the area through increased employment opportunities and various economic activities which is in line with government policy of job creation,” the Minister said.
ZESCO managing director Cyprian Chitundu said the company was spending huge sums of money supplying electricity using generators and maintaining the generators which have been characterized by inadequate capacity, low reliability of supply and high operational costs.
Mr. Chitundu said the company was using over US$8 million per year on diesel alone to run the stations while the corresponding revenue is less than the fuel cost hence the grid extension will help save money to invest in other infrastructure development.
He also noted that the constraints in power supply in the province has been hindering the improvement of the quality of lives for people in province.
Only two districts are connected to the national grid in North Western province while the rest run on diesel generators.
In March this year ZESCO signed a US$163 million loan agreement with Nordea Bank AB of Sweden and Standard Bank of South Africa.
The loan agreement will result in the connection of the entire North-Western Province and some parts of Western Province to the national electricity grid.
The project involves the construction of an extensive 132KV sub-transmission lines totaling 840 kilometres as well as establishing 132/33/11KV bulk supply sub-stations to facilitate electrification of public facilities, schools, rural health centres, Government institutions and chiefs’ palaces.
The aforementioned transmission lines will link Mwinilunga, Kabompo, Mufumbwe, Mumbejhi, Chavuma, Zambezi and Lukulu District in Western Province.
ZESCO signed an Engineering and Procurement Contract with Eletel Networks TE AB of Sweden to execute the project in 24 months.
Can they explain how they utilized the Eurobond stake they got from POWER FAILURE(PF)
Zesco and government are busy having cocktail dinners to celebrate a loan? Let me guess the money spent to host the dinner was deducted from the loan. ..I’m sure there will be more dinners and shopping sprees to come.
For all the FOREX that ZESCO earns, they still can’t fund themselves when it comes to transmission lines?? Honestly they should be reeling in shame considering the number of natural waterfalls we have – they boast about Diesel power generation??
The mentality of our CEO’s is really ANCIENT, this is similiar to what happened at ZCCM, no forward planning vis a vis Prospecting, The same minerals that “INFESTORS” are exploiting today, were claimed to be dwindling by ZCCM management!!
YOU ARE ABSOLUTELY RIGHT. WHY IS IT THAT ZESCO ITSELF IS CONSUMPTION ORIENTED INSTEAD OF CONSUMERS? SINCE INDEPENDENCE THIS COMPANY HAS NEVER MADE MONEY TO FINANCE ITSELF? IS IT STILL A CASH COW FOR THE GOVERNMENT? IF NOT WHY IS IT STILL DEPENDENT ON TAX PAYERS’ MONEY? WHY CAN’T FINANCE IT’S OWN PROJECTS LIKE BUILDING NEW DAMNS, LAYING NEW TRANSMISSION LINES AND EVEN PLANNING ADEQUATELY FOR NEW COMPANIES WHICH DO NOT COME IN INCOGNITO? PEOPLE ARE SICK AND TIRED OF THIS SUCKER IN THE NAME OF ZESCO, REALLY.
TE NEWS YAKALEIYI?
ANYWAY SHORTAGE OF POWER SUPPLY IS DUE TO POOR OR LACK OF PLANNING BY ZESCO. THE COMPANY IS ALWAYS RUN BY POOR MANAGERS WHO CAN’T PLANNING FOR INCREASED POWER EVEN IF THEY ARE SEEING BIG MINES COMING. IT’S BEING STUUPIID, REALLY. IN THE NEAR FUTURE START PLANNING FOR THE BIGGEST DAM ON LUAPULA RIVER TO SOLVE ALL POWER BLUES AND EVEN EXPORT PLENTY FOR REVENUE. DR CONGO IN WAR IS CONSTRUCTING A US$13BILLION HYDRO DAM AND MORE THAN 50% OF POWER IS ALREADY ORDERED BY SOUTH AFRICA. HOW CAN CONGO AT WAR PLAN FOR THE LONG FUTURE THAN ZAMBIA NOT AT WAR AT ALL?
They give you the money as a loan and bring their own company to execute the project. when do we wake up from this sure?
Zambia energy rates are below world levels, If zesco are not allowed to increase 25%. Every year for the next few years howI will zesco manage to create more generation plants, hydro. Solar. Etc. let alone maintain there net work of infrastructure in zambia. Electricity is subsidised by the government … Also if zambia does not increase electricity rates to a realalisitic world price zambia will not manage to raise money to build new power plants. We already have load shedding do you want more load shedding ? Let a few more new mines switch on and we will all need generators at home , this will cost you ten times the price of a monthly zesco bill just on diesel not including the cost of buying a generator. We need to bite the bullet and get on with new pricing. If…