Government says North Western Province well only acquire meaningful development once it is fully connected to the national electricity grid.
And Zambia Electricity Supply Company (ZESCO) Managing Director Cyprian Chitundu says 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 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.
and 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 serve 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.
The 24 month project has been financed by Standard Bank South Africa and Nordea bank of Sweden.
