Struggling power utility Zesa has been warned by its South African counterpart Eskom, that it will be cut off immediately if any of the weekly payments are even late by a single day.
Zimbabwe is currently receiving 400 MW from Eskom on condition that it makes weekly payments of US$890 000 to service a US$33 million debt. Zimbabwe has been plagued by a severe shortage of electricity which has resulted in massive load-shedding with power blackouts of up to 18 hours a week.
The Business Times reports that:
Zimbabwe is also not supposed to slip on payments even by a day as there will be no leniency. If they do slip, South Africa will immediately call in the guarantee. The power supply agreement is backed by a US$15 million guarantee from a regional bank.The hard stance from South Africa comes as there had been opposition to the agreement within the neighbouring country’s government as some felt Eskom, which recently reported a billion-dollar loss, was constrained.
A source who spoke to the publication said,
Negotiations between Eskom and Zesa were not easy given Zimbabwe’s record in servicing debts.
Zimbabwe has to adhere to several conditions to keep this arrangement active. Eskom has made it clear that it will not hesitate to switch off Zesa if it fails to affect its payments.
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.jpg "Sona Solar Zimbabwe")
