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Zesa, power producer embroiled in currency dispute

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A currency dispute between an independent power producer and power utility Zesa shows how regulatory hurdles continue to dim prospects for private energy investment in Zimbabwe.

Zesa is awaiting the outcome of international arbitration in a currency dispute with one of the country’s first private power producers, a case that’s holding up other investments.

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Nyangani Renewable Energy, which operates solar and hydropower plants in Zimbabwe and Malawi, took the Zimbabwe Electricity Transmission Distribution Company (ZETDC) to the Johannesburg branch of the International Chamber of Commerce to rule on the disagreement over a currency conversion agreement.

“We eagerly await the outcome of the arbitration,” Ian McKersie, the managing director of Harare-based Nyangani said. “If it is favourable, it will allow us to resume the very conducive working relationships we have.”

The dispute was heard on June 14. Nyangani says it is owed US$8.6 million for power delivered from its 15MW Pungwe B run-of-river hydropower plant. It wants to be paid in US dollars but ZETDC, a unit of Zesa, is seeking to pay in Zimbabwe dollars.

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Zesa declined to comment.

Nyangani’s 10MW Riverside Solar power station was the first independent producer to feed into Zesa when the first 2.5MW came on stream in January 2018.

The company plans to expand, but “the rollout of the next phase has been stalled for three years pending a resolution of the IPP currency of payment issue”, the company said in July.

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The company also said last month that “despite exceptional initial progress, construction on the Tsanga A and C Hydros has been hampered and halted due to IPP currency payment issues”.

Nyangani has built eight power plants in Zimbabwe since 2009 with a total generation capacity of 32MW.

Zimbabweans are subjected to regular power cuts because of the inability of Zesa to meet demand, and the state-owned company is struggling to pay for privately produced power because of a shortage of foreign currency.

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Other projects are stalled as producers await the outcome of the case.

Private electricity has the potential to transform the industry in Zimbabwe, and help repair an economy that’s yet to recover from a collapse two decades ago.

While independent power producers supply only 135MW to the grid, licenses for facilities with a combined capacity of 6 858MW have been issued, according to a parliamentary report.

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That is more than enough to meet demand for electricity, but many of the projects have not taken off.

In May last year, Zimbabwe tendered for 500MW of solar power, hoping to attract private investment into renewables.

Private companies, such as leading mining companies, are advancing rapidly in setting up solar plants for their own consumption.

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But growth in investment by independent producers remains slow.

This is largely due to uncertainty around the currency, power offtake agreements with Zesa and scarcity of foreign credit for large scale power projects. –Bloomberg/newZwire

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Lupane

Conductor killed in bus accident along Dandanda-Jotsholo road

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BY STAFF REPORTER

A bus conductor lost his life in a tragic accident along Dandanda-Jotsholo Road in Lupane after being run over by the bus he was working on.

The incident occurred on November 17, at approximately 1:30 a.m.

According to the police report, the conductor was hanging precariously on the moving bus and unfortunately slipped and fell, resulting in fatal injuries.

The police are now urging bus operators and crew members to exercise extreme caution and adhere to safety protocols to avoid such devastating accidents.

They specifically warn against allowing loaders or conductors to hang dangerously on moving vehicles, emphasizing the importance of prioritizing safety on the roads.

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Bubi

Inyathi man handed community service for burning wife’s belongings

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BY WANDILE TSHUMA 

A 39-year-old man from Inyathi Township has been convicted of malicious damage to property after a disagreement with his wife

The accused recently appeared before the Inyathi Magistrates’ Court for malicious damage to property.

According to the National Prosecuting Authority, sometime in September, the accused person had a misunderstanding with the complainant, his wife over the welfare of the family.

He forced the complainant and their children out of the house.

While the complainant was away, the accused person burnt the complainant’s belongings.

The destroyed property was valued at $140.

The accused person was sentenced to 24 months imprisonment, of which 3 months were suspended for 5 years.

A further 18 months were suspended on condition that he completes 630 hours of community service.

The remaining 3 months were suspended on condition of restitution.

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Hwange

Victoria Falls residents at odds with roaming buffaloes, Zimparks maintains they belong

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BY NOKUTHABA DLAMINI

Residents of Victoria Falls are struggling to coexist with a large number of buffaloes that have taken over the streets of both high-density urban areas and low-residential areas.

The buffaloes seem to be everywhere, leaving residents frustrated and desperate.

Videos taken by residents and VicFallsLive, our media organization, show people trying to chase them away using sticks and rocks, but the buffaloes are undeterred.

This morning, three buffaloes blocked the road on Jakaranda Street, eating leaves from the trees and grass.

Despite the distress calls from residents, the Zimbabwe Parks and Wildlife Management Authority (Zimparks) maintains that the buffaloes are within their habitat.

“I think we need to understand who is is saying there has been a growing trend of buffalos in Victoria Falls for an example, l think the numbers we have in Victoria Falls we don’t have much problems with them and this is what attracts tourists,”said Tinashe Farawo, Zimparks spokesperson.

“It’s a tourist town and one of the major draw-cuts for tourists is those buffalos. It is definitely their habitat that’s where they stay in the wild.”

However, residents disagree. They say the buffaloes are causing a nuisance and pose a danger to humans.

“We are working hard to make a living, and now we have to deal with these wild animals in our streets,” said Khulani Ncube.

In one incident, about 40 buffaloes blocked the road on Mkhosana Street near Kazungula Road, eating vegetables. “It’s like they own the place,” said Trymore Ndolo who witnessed the scene, adding that they might cause a casualty if action is not taken.

While the Zimparks says that the buffaloes are a tourist attraction, residents argue that their safety should come first.

“We understand that tourism is important, but what about our lives?” asked a resident.

 

 

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