Story by Owen Mandovha, Business Reporter
THE government has assured independent power producers that it will guarantee the viability of their projects by way of economic tariffs to improve the national power supply situation.
The Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube made his maiden visit to the 22 megawatt GeoPomona Waste to Energy Project and was delighted by how the project is unfolding.
Professor Ncube has pledged that Treasury is guaranteeing an economic tariff to ensure the viability of independent power producers such as GeoPomona to promote large scale investments in renewable energy generation.
“We have come up with a framework that ensures that all independent power producers have support from the government by way of giving them an economic tariff of US$0.16 per kilowatt,” the Minister said.
“I am here at GeoPomona to understand and learn about this project which we see as a game changer not only in waste management but to enhance our environmental management systems as a country. Our wish is that the project is replicated in other provinces in the country.”
Treasury’s pledge of an economic tariff has excited investors who look forward to recoup investments once the project is complete.
“As GeoPomona, we are now moving to the stage of constructing the power plant but we feel grateful especially after the visit by the Minister of Finance who gave us assurances that we are indeed guaranteed of an economic tariff. We are by June set to proceed with the construction of the energy plant and at the moment, civil works are being done,” CEO and Executive Chairperson of GeoPomona Waste Management Company, Dr Dilesh Nguwaya said.
Professor Ncube was very much delighted by the progress at the project, which has seen the construction of sports facilities, water treatment plant and the sorting plant, while the existing waste has been encapsulated in a major transformation of the once filthy environmentally hazardous site.
