January 2010 Vol 2, Mining and Industry Indaba
NamPower says Zimbabwe power deal still on
Namibian power utility NamPower has denied that the Zimbabwe Electricity Supply Authority (Zesa) has been ordered to cut power exports to Namibia, saying that it is “business as usual between NamPower and Zesa”.
Namibian power utility NamPower has denied that the Zimbabwe Electricity Supply Authority (Zesa) has been ordered to cut power exports to Namibia, saying that it is “business as usual between NamPower and Zesa”.
The power utility noted in a statement that it has, so far, not received any official communication from Zesa confirming recent media reports that the Zimbabwean Energy Ministry had directed the Zimbabwean utility to cut all energy exports to NamPower.
Various media have reported that Zimbabwe’s government had ordered Zesa to stop exporting 150 MW of electricity to NamPower until the 400-MW Hwange power station was repaired.
In 2007, the two utilities signed a bilateral agreement in terms of which NamPower would advance Zesa $40-million to rehabilitate the Hwange power station and would in return be supplied with 150 MW of electricity from Zesa for a five-year period.
The Hwange power station was reportedly currently operating below capacity as a result of coal shortages.
“NamPower and Zesa have for a long time maintained good trading relations and NamPower is proud to state that, in the past couple of years, under the existing bilateral agreement between the two utilities, Zesa has been willing to assist NamPower when required,” the Namibian utility stated.
