ZESCO Owes Mozambique Power Utility US$53M Says Minister

ZESCO Owes Mozambique Power Utility US$53M Says Minister

Energy Minister, Mathew Nkhuwa has disclosed that ZESCO Limited owes the Mozambique power utility (EDM) a total of US$53 million from the contract the two companies signed to mitigate the power shortage the country faced from 2016.

Mr. Nkhuwa has told Parliament that as of 31st May, 2018, the outstanding balance to EDM was US$53 million contrary to media reports that ZESCO owes EDM a total of US$73 million.

He has further clarified that EDM has not terminated the contract with ZESCO due to the balance owed, but that the contract came to an end in January 2018.

Mr Nkhuwa says ZESCO decided not to renew the contract because it is able to generate power to meet the national demand following the favorable rainfall the country received in the 2017/2018 rainy season.

He has also refuted assertions that government is contemplating increasing electricity tariffs this year.

The Minister was responding to a question by Mazabuka Central Member of Parliament Garry Nkombo.