Slow project development worries Zera

Ms T Mutsinze (left) ZERA Board Member and Eng. G Magombo (right) ZERA CEO

Published: 04 November 2013

The Zimbabwe Energy Regulatory Authority (ZERA) is concerned with the slow pace at which some licensed Independent Power Producers (IPP's) are implementing their projects.

ZERA has in recent years licensed about 12 IPPs with a capacity to generate about 5 000 MW of electricity but most of them are yet to become operational.

ZERA chief executive Engineer Gloria Magombo told New Ziana some of the projects were being affected by lack of resources.

"We are not necessarily happy but I think what is critical is that there is progress, they are doing something but the speed with which some of the projects have been going has been affected by their ability to access project preparation funds," she said.

"These projects are there. They (investors) can participate, they do not necessarily have to start participating at the point of funding the main project which will require billions of dollars but they can assist at project preparation level and assist these people to access funding for them to be able to complete environmental studies, the full feasibility studies which need funding and that is where the challenges are but there are some projects which we are very happy with their progress. I think about two or three of the large ones are really moving very fast."

Engineer Magombo, however, said of the 12 IPP's that have been licensed, six were already operational but these were smaller ones which produced electricity mostly for their own consumption.

She said these included the Chisumbanje ethanol plant, the Hippo Valley and the Honde Valley mini hydro power plants.

- New Ziana