After being castigated by many people and stakeholders regarding its service provision, ZESCO now looks at El-Sewed of Egypt to aid in improving on service delivery through old substations upgrade.
An effective provision of electricity from the generating point to consumers has been a major challenge in Zambia as many people are subjected to heavy load shedding despite settling their bills on time.
Zambia’s power supply firm Zambia Electricity Supply Corporation –ZESCO- has attributed this to lack of financial muscle to upgrade the existing old infrastructure and machinery.
ZESCO has in this vain signed a US$ 100 million project with an Egyptian Firm El-Sewed to improve its services through existing substation and pylons upgrades.
Speaking during the signing ceremony ZESCO Acting Managing Director Ernest Mupwaya says the project has come at the right time when the nation is entangled in a power crisis and faced with a huge power deficit.
Mr. Mupwaya has further stated that vandalism has adversely affected the company’s huge investments in various parts of the country.
“Vandalism has remained a major challenge that ZESCO is faced with as we are forced to replace vandalized equipment which also comes at a greater cost,” Mr. Mupwaya said.
And El-Sewed Managing Director Khaled Samir is confident of more jobs being created as a result of this project.
“The US$ 100million project will see a number of locals being employed in areas where the projects will be implemented….this is good for economic development of the nation as it will translate into more households having an income,” said Mr. Samir.
Meanwhile with the huge power deficits that the country faces, Energy Deputy Minister Lubinda Immasiku reiterates government’s commitment to developing the energy sector to match economic development.
ZESCO to invest more in expansion projects
ZESCO Board CHAIRMAN Kwalela Lamaswala says the power utility company is planning on investing further in the hydro power generation as it is a vital economic driver. Mr. Lamaswala says ZESCO is this year planning to invest 400million US Dollars in the Kariba North Bank power project and a further 200billion kwacha on various other projects.
“Our huge investment in the hydro plant is at enhancing the company’s operations following the Key Performance Indicator (KPIs) that were given to us by the Energy Regulation Board (ERB),” says Mr. Lamaswala.
Background
ZESCO is working on modalities to increase electricity generation capacity and access following the US$75 million loan obtained from the World Bank meant for a number of projects in some parts of Southern, Lusaka and Copperbelt Province, to improve access to electricity.
ZESCO Limited has also proposed to increase electricity tariffs for 2010/11 by 36 per cent in line with the roadmap to reach cost-reflective levels.
“Zesco’s current tariffs are still far below the cost-reflective levels required to maintain the power generation and supply infrastructure,” ZESCO Acting Managing Director Enerst Mupwaya said.
He has stated that the tariff adjustment would help Zesco to mobilise huge funds required for investing in new generation and transmission facilities needed to meet the growing power demand in the aftermath of the global economic recession which dampened electricity demand by most key consumers like mining companies and other industries.
“…Upwards trends in demand for electricity indicate that the global economy has begun its recovery and this will bring about further pressures on the electricity supply and perhaps a return of load shedding if the necessary investments in generation and transmission are not effected,” stated Mupwaya.
Last year, Zesco applied for 66 per cent tariff rise in electricity, but the ERB approved a 35 per cent average increase in electricity tariffs effective August 1, 2009 to 2010.
By Brian Mwale.
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