ZESCO needs urgent restructuring, good governance to attract partnerships- HH

Filed under: Breaking News,Business,Politics |
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Hakainde Hichilema

UPND leader Hakainde Hichilema says the country’s power utility, ZESCO, needs urgent restructuring, good governance and proper fiscal management in order to be efficient and attract partnerships with Independent Power Producers (IPPs).

He says ZESCO is heavily indebted and its lack of credit worthiness is turning away possible partners. Adding that PPPs cannot use their power purchase agreement with ZESCO to raise capital for development. Saying this is typically part of how IPPs raise funds for projects.

“ZESCO must be allowed to operate devoid of political interference and corruption. The organisation is riddled with cadres and this will undoubtedly stop when we take over next year. ZESCO is also insolvent, meaning, the value of what it owes is far greater than what it earns,” says Hichilema.

He adds that technologies need to be deployed and be supported by storage apparatus for when the load falls due to lack of Sunshine.

“The transmission infrastructure also needs to be made more robust to mitigate the volatility. We must invest in revamping the entire power network.

“There is a high concentration of our current generation capacity in the south that puts enormous stress on the transmission infrastructure and also poses a national security risk as 90% of electricity sources should not be concentrated in one region,” he adds.

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Start: 2019-07-01 End: 2019-07-31