Zimbabwe and Namibia to uphold 2007 power contract

DATE: 20 Jan 2010
Zimbabwe and Namibia to uphold 2007 power contract.

Coal shortages had reduced Zimbabwe’s power generation and raised concerns of cutting off exports

By Sarah Wolfe

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After media reported Zimbabwe’s Energy and Power Development Minister Elias Mudzuri had called for the suspension of power exports to Namibia, it’s been confirmed the 2007 deal signed by the two countries will be upheld.

Through the $40 million agreement, Namibia’s NamPower is refurbishing ZESA’s 400 MW Hwange Power Station in return for 150 MW of power over five years. With recent coal shortages, the plant has been operating below capacity – leaving an even lesser amount of energy available for export.

"The Government of Zimbabwe and ZESA remain committed to the terms of both the loan agreement and the power purchase agreement as well as the Southern Africa Power Pool trading protocols," Mudzuri told reporters this week. “Any changes and improvement to the agreement are to be done within the context of the agreement itself."

Zimbabwe’s older equipment and shortages in coal have led to major reductions in available power; 1,100 MW is currently generated - nearly 50 percent less than the 2,000 MW peak demand. Thirty-five percent of the nation’s power comes from regional providers.

Learn more at: The African Report

(Edited by Gabe Perna)

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