/ 13 June 2006

Coal supplies cut to main Zimbabwe power stations

Coal supplies to Zimbabwe’s main power stations have been massively scaled down, further crippling electricity supply in the struggling Southern African country, reports said on Tuesday.

Hwange Colliery Company (HCC) has cut supplies to Zimbabwe Electricy Supply Authority (Zesa) Holdings by up to 40% over unpaid bills, leading to a significant reduction in power generated by the main Hwange power station, said the state-controlled Herald.

Zesa Holdings is now generating only 90 megawatts of power at the 650-megawatt station, the report said.

News of the loss of generating capacity couldn’t come at a worse time for Zimbabweans, already battling frequent power cuts that Zesa blames on its inability to generate funds.

Power cuts took a rapid turn for the worse this weekend, with residents of some parts of Harare and other cities reporting cuts lasting up to seven hours every day since Friday.

Zesa owes HCC Zim$500-billion ($5-million), a debt that has been accumulating since January, said the paper.

Zesa says President Robert Mugabe’s Cabinet will not allow it to charge higher tariffs because that would push inflation up even further.

Annual inflation is currently running at 1193,5% in Zimbabwe, the highest rate in the world.

The managing director of HCC confirmed that coal supplies to Zesa had been scaled down and said Zesa’s failure to pay was constraining their operations.

”We also have our suppliers and we are paying them on time. We do not have the luxury of getting supplies for six months without paying like Zesa is doing,” said Godfrey Dzinomwa.

The authorities in Zimbabwe are well aware of the urgent need to improve power generating capacity ahead of an anticipated regional shortage in 2007.

Vice-President Joyce Mujuru this weekend witnessed the signing of a $1,3-billion deal with China, which will see Chinese companies developing coalmines and power stations in Zimbabwe in return for chrome. – Sapa-DPA