The Copperbelt Energy Corporation has charged that the action by the Zambian government to declare its transmission and distribution lines as Common Carrier amount to the expropriation of the CEC infrastructure.
Expropriation is the action by the state or an authority of taking property from its owner for public use or benefit.
In a statement, CEC Senior Manager for Corporate Communications Chama Nsabika stated that CEC is now on the brink of defaulting on all its loans borrowed from international lenders.
“It is abundantly clear that the GRZ has for all intents and purposes taken steps that amount to expropriation of the CEC infrastructure and CEC is now on the brink of defaulting on all its loans borrowed from international lenders. GRZ’s actions have the full effect of taking away CEC’s commercial and property rights, and completely inhibiting the Company from taking viable business decisions, including enforcing its legal and commercial rights in the best interest of the business,” Mrs Nsabika said.
“CEC takes this opportunity to advise all its investors of these actions from the GRZ that are highly detrimental to the well-being of the business and its ability to continue as a going concern. Investors are notified that CEC will, in the time being, engage in dialogue with the GRZ in the hope of obtaining an amicable and equitable outcome targeted at restoring the Company’s commercial and property rights. CEC will keep all its investors fully updated.”
She said the Statutory Instrument No. 57 of 2020 (SI 57) issued by the Minister of Energy, Honourable Mathew Nkhuwa, declaring all of CEC’s distribution and transmission lines as Common Carrier came just hours before the expiry of CEC’s power supply agreement (PSA) with Konkola Copper Mines Plc (KCM), which took effect at midnight on 31 May 2020 and in the wider context of the failed negotiations for the renewal of the Bulk Supply Agreement (BSA) between CEC and ZESCO, which lapsed on 31 March 2020. Both KCM and ZESCO are, as of now, effectively controlled by the Government of the Republic of Zambia (GRZ).
CEC notes the following significant events leading to the issuance by the GRZ of SI 57:
- 8 May 2020 – CEC institutes measures to recover debt from KCM, which has now grown to about USD144 million
- 13 May 2020 – KCM admits its indebtedness to CEC
- 26 May 2020 – ZESCO requests use of the CEC transmission network to supply power to its new unknown client on the Copperbelt and requests for a meeting in the first week of June 2020
- 28 May 2020 – CEC acknowledges the ZESCO request, stating that it stands ready to start negotiations as long as the customer involved has no valid agreement with CEC and does not owe CEC money
- 28 May 2020 – the Minister of Energy writes to CEC asking the Company to give path to ZESCO to supply power to KCM
- 29 May 2020 – GRZ through the Minister of Energy promulgates SI 57 declaring CEC infrastructure COMMON CARRIER
- 31 May 2020 – ERB writes CEC setting a wheeling tariff equivalent to about 30% of CEC’s current network tariff (current tariff charged for using the CEC network)
“From the above events, it is abundantly clear that the GRZ has for all intents and purposes taken steps that amount to expropriation of the CEC infrastructure and CEC is now on the brink of defaulting on all its loans borrowed from international lenders,” Mrs Nsabika said.
You deserve it you greedy bus1ards
Buti zoona! Just like that pf have destroyed the largest locally owned private energy business! Zambia is doomed under lungu.
This infrastructure was under Government and company was called ZCCM Power Division. In someone’s wisdom, instead of giving it to ZESCO, It landed in private hands which paid $120m whcih is less than Pogba’s one leg. ZESCO has been supplying power to a mines via a third party.
This infrastructure was under Government and company was called ZCCM Power Division. In someone’s wisdom, instead of giving it to ZESCO, It landed in private hands which paid $120m which is less than Pogba’s one leg. ZESCO has been supplying power to the mines via a third party. Akainde sees no problem with this. There was no need for due diligence hahahaha
Sungwe
Give it to ZESCO ???
Look at the state of this same ZESCO , 50 years of monopoly yet still can’t get it right with never ending load shedding…..
It is Zesco’s transmission infrastructure that should be common carrier so independent power producers should sell power directly to the public, bills will be cheaper …..
ZESCO is ripping off people with their inefficiencis and monopoly of the distribution bussiness….
Ka pindeni mwenye for your $140m, that grid belonged to ZCCM and you conned GRZ out of it. That’s why it’s been designated a common carrier, tantuleni ngatamulefwaya. You can’t carry the grid anyway…..kwekwekwekwekwe….
Nationalization hurts Zambia’s credibility on property rights.
Within a year two major mining assets have been grabbed by Government. It’s a slippery slope from here folks.
If government can take this and your are quiet, don’t be surprised if they come for you next.
Zambians would be comfortable if CEC was foreign owned. We are a bunch of jealous people. We cant stand successful zambians, hence hatrage for HH. We have such slave mentality and lack self esteem. Tomorrow this company will be handed over to Chinese or Sudanese and we will be happy. Zambian Engineers have successgully ran CEC for over a decade and instead of getting support from zambians and government, you chose to destroy it. Why, why. Why?
Never ever again shud Zambia v a leader like Edgar Lungu
Sungwe, your reasoning is laughable. GRZ sold this company in 1997 and the laws of this country protect property rights. Please ;lets not allow GRZ under the PF administration to destroy this beautiful country.Remember and never forget- today its CEC, KCM Vendata, Prime TV and the POST Newspapers. Certainly tomorrow its surely you. Sungwe please have reason to fear the wrongs this PF administration is committing in your name and call them for whom they are- A LAWLESS AND DRACONIAN GOVERNMENT, WHOSE DESIRE IS TO CAUSE PAIN TO THEIR COMPATRIOTS.
You can bet your life that PF reasoning is KCM will make more money if it gets free power from ZESCO , only CEC stands in the way……..
And you can also bet your life that CEC was a poor contributer of funds to lungu and PF campain war chest…….
Aba bena ba PF naba filwa fye. There is no where to hide. Balipileni pela 144m dollars benekazi, vinkhongole mbwe, kusoba napofuzila. Mwaka ngiwa. Longani muyambepo. I have used your anguages so that you can get me loud and clear.
VOTE MMD 2021
Who privatised the zccm power division to this kalomo man? Any link this man to the privatiser? My only why is about power dynamos which is sponcered by cec.
I didnt know that prostitution has finally been legalised in Zambia, I mean KCM caught in the act with two married men. What else can this be? Bushe ba PF government, inkongole tashifulile, nomba mwabikapo no bucende ka?
The biggest problem here is that CEC has no power of its own to supply to the mines. The beggar is not a chooser here
Investors are watching. Even those who were thinking of coming to invest in the energy sector will now shy away. Next to be taken is maamba since zesco is also owing them huge sums.
@SUNGWE Its either YOU ARE A LUNATIC or A PAID PF CADRE!!! LIKE ONE ANTONIO OR MONDAY CHANDA
Investors had better be watching. Pay your own costs of production and we want above average salaries for our Zambian Labour. Our resources are not a freebie.
As for Mrs Nsabika, don’t be duf*t love. You got that right. Govt can expropriate anything. Call it Nationalisation if you like. But stop telling lies. The action was taken after you disobeyed a simple order to supply power to KCM so business could resume, and laid off employees could start earning leading to protecting GDP for the country. PAY YOUR LOANS hope your lenders don’t fall for your excuse.
Timeline of events leading to issuance of SI is quite revealing.
We had,the other day, Antonio Mwanza at pains to point out that anyone wishing to use CEC power lines under the new SI can only do so on agreed terms with CEC , and yet we now learn that ERB wrote to CEC directing them on the rate that they should apply for carrying Zesco’s power to their ‘new’ client.
….Banana republic!
Milupi is a crook. The way they bought and then instead of offering to locals they brought in their proxies from UK to takeover cream ( free cream at the cist of Zesco and household consumers). CEC was ripping off profit, cheap buying, cheaper than household consumer, and making rich richer. Abash crony capitalism. Abash HAKAINDE. Abash everybody who has been pushing poor to the brink of slavery in free Zambia.
Free Zambia of for by capitalists
Crony capitalists are fighting corrupt politicians. Who wins?
Any guess?
Both win
Who loses
Zambian taxpayers.
Business as usual