Story by Tichaona Kurewa
THE government says the compilation of new power projects that require financial guarantee has begun, in a move expected to significantly boost power generation in the country.
A number of Independent Power Producers (IPPs) have received the necessary approvals, with ZESA Holdings also offering reasonable payments for generated power.
However, these projects are struggling to secure the necessary financial investments which has prompted government intervention.
“So we are working now with Reserve Bank and the Ministry of Finance to see whether we can find a way of satisfying some of the investors, some form of guarantee, which will ensure that what they put, in terms of investment, they will be able to pay dividends, they will be able to pay their loans if they get loans. That is what we need to be discussing and I think we will find a solution,” the Minister of Energy and Power Development, Honourable July Moyo said.
The focus is on providing guarantees to investors, ensuring the security of their investments and facilitating the financial closure of the projects.
The process to identify the specific projects facing these financial challenges has since kicked off.
“We have already had a discussion with the Governor of the Reserve Bank and I have had discussions with the Minister, but now we need to find through ZESA, those who are failing to have financial closure because of some guarantees which they need, and I have asked that they be brought so that we can discuss with the Governor and the Ministry of Finance,” Minister Moyo said.
Zimbabwe is actively developing various power projects nationwide, with a target to increase national power generation capacity from 2,300 megawatts to 6,000 megawatts by 2030.
