Tuesday, July 23, 2024

IDC takes steps to restructure ZESCO, seeks to split firm into three separate units

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The Industrial Development Corporation has announced plans to restructure state power utility ZESCO.

Through a tender published in the Daily Mail of Tuesday, January 4th 2022, the IDC wants to engage a Consultant who will undertake financial and operational restructuring of ZESCO.

The IDC says the Consulant should also assess the possibility of segregating ZESCO’s main divisions such as generation, transmission and distribution into separate units.

IDC stated that the splitting of ZESCO should not only provide financial relief by disposing off loss making assets but will also enhance control of ZESCO’s efficiencies.

IDC also wants the Consultancy to improve ZESCO’s credit worthiness through a review of the current and contingency debts with a view to restructuring the outstanding debts as well as formulate loans restructuring plans and strategies.

The Consultant is also expected to provide plans on financial turn around of ZESCO and return the company to profitability through the review of all income streams, operating costs and expenses and balance sheet.

Bids for the consultancy should be sent through to the IDC not later than 28th January 2022.

28 COMMENTS

  1. Good news. Should have happened years ago. But potential investors for any of the three separate operating units will be scared to death over the enormous debt burden of the incumbent, and also the rampant corruption within the company.

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  2. HH and his companies are celebrating these upcoming contracts.
    Rich(1990)-Richer(2000)-Richest(2022-?)
    Poverty(1964)-Poverter(1990-2005)-Povertest(2022-?)

    Nemizompiki shalaonda apa!

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  3. I’m not competent to make a comment on this matter. I don’t even know if the split will be good for the consumer. Journalists should quiz those driving this process.

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  4. Milingo Lungu undertook to split mining from smelting operations @ KCM but he was seriously opposed. Why are we splitting Zesco then?

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  5. Unblinding a national utility like ZESCO is no easy undertaking and this is not something that can be done by IDC ….you need the President to appoint a taskforce and its a long procedure just ask the Ugandans.

  6. This is not necessarily a move to privatise Zesco. ZSIC was split into life and general insurance subsidiaries but remains a state-owned company. I don’t know if it has resulted in more efficient units. It’s a pity those who bring the news don’t seek expert comment.

  7. Do not bring in Johnstone Chikwanda, let him continue living in South Africa where he has properties bank rolling from hi father Alexander Chikwanda. Equally, avoid Valentine Chitalu who privatised Zambian mines for a song. These guys talk well but their intentions are evil. They tricked president Sata on KKIA and altered its original design plan, pocketed the savings from that altered plan – very selfish and unpatriotic.

  8. Why did you merge them at the first place. We used to have Kariba North Bank whose job was generating and Zesco selling ! Wrong decision makers ( so called consultants – let’s eat now guys ) who don’t think beyond their bellies.

  9. This is just a pretex for privatization!! So what will happen if it is found that small power stations especially those in rural areas. THESE ARE THE IMF CONDITIONS,THAT IS WHY THESE GUYS IN POWER HAVE NEVER MADE PUBLIC WHAT IS IN THE IMF AGREEMENT!!

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  10. Its now clear a deal with IMF was made even before August elections.

    These no denying Zesco is loss making but the good thing is that we all know why and it has nothing to do with splitting.

    The IMF big boys have had their eyes set on Zesco for a long time now.

    Splitting Zesco will allow IMF funders to have access to Zesco in the name of investors.

    Citizens whether we like it or not Zesco is gone, no more affordable bills.

  11. Do we honestly need a private consultant to restructure Zesco.

    Looks like consultancy is the latest stealing loophole.

  12. These are the same people who took out ZIMCO, now they are coming to finish off the remaining breadcrumbs. ZIMCO was unique and the Europeans dismantled it due to envy because it actually worked even though they made us believe that it was highly inefficient. The state should maintain majority share in any privatisation of ZESCO otherwise electricity will be beyond the reach of many and the new owners will be full of tricks like the mines.

  13. THIS SHOULD HAVE BEEN DONE YEARS AGO.
    BUT THE PF TREATED ZESCO AS A CASH COW TO FUND ITS PARTY AND CADRES.
    ECL AND THE PF WERE PURE EVIL

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  14. Dear Editor, please be responsible to help the citizens who only know how to read English language comprehend the interpretation of the split of ZESCO. It appears some believe it is privatization. Dear those learners: it is a split of divisions. just like what’s happened to ZAMTEL. ZESCO WILL REMAIN ZAMBIA OWNED AS ZESCO. A Pretty Example, its like the way Lusaka has been split into constituencies for the purpose of making you understand.

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  15. Great start ba New Dawn. However, the best is to give distribution especially domestic distribution back to the Local Councils. Let Local Councils buy power cheaper from ZESCO then distribute it to domestic consumers at some reasonable profit. That way, there will be efficiency and the Local Councils will be able to make some good business that will sustain other responsibilities like maintaing township roads, markets, stations, refuse collection etc etc. This is working in serious countries like Namibia and Botswana, it can work for Zambia too if well managed and coordinated.

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  16. The IMF remains in secrecy and as long as its content are not disclosed, we will wake up one day just to realise the entire country is completely privatised. This looks like one of the conditions contained in IMF bail out package. Anyway ‘tukaba bwino kunuma because kuntanshi there’s congestion.’

  17. If anyone is expecting to hear the term “PRIVATISATION” then sorry. Not in this government or era. The action has been well mitigated by terms such as “split” and “maintenance”.
    Those who think outside box will understand.

  18. #7 Nemwine. It was not Milingo who suggested that. During privatization the smelter which is in Kitwe in the same area as Central Shaft owned by Mopani was sold to Anglo American original owners of KCM. The unit was separate from the mines in Chingola, Chililabombwe and Nampundwe and operated as SmelterCo.

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