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.
