China Africa, ZETDC agree provisional power purchasing deal

China Africa Sunlight Energy Africa and the Zimbabwe Electricity Transmission and Distribution Company have agreed a provisional power purchasing agreement for electricity that will be generated from the company’s proposed $2.1 billion energy projects in Gwayi.

The two companies met last week under moderation of regulator Zimbabwe Energy Regulatory Authority, although both parties refused to comment on the agreed figures.

ZETDC is currently selling its power at 9.7 US cents per kilowatt hour (kWh).

ZERA chief executive Gloria Magombo said that the agreed figures were being kept under wraps since they are not final.

“We cannot say in public for how much China Africa will sell its power to ZETDC but yes we have agreed on a provisional figure,” she said.

Magombo said there were a number of technical issues that were discussed but they will only come into consideration once the project gets under way.

“It is not only about pricing, there are a lot of other technical issues that needed to be agreed to. Most of these issues are between the two companies. Our role was to intermediate and see that whatever is agreed on conforms to our standard and expectations,” she said.

China Africa deputy general manager Charles Mugari said he could not also divulge the agreed provisional figures.

“That is up to ZERA to say. We wouldn’t want to be seen as people who are campaigning for certain tariffs because obvious when there are negotiations, each side come up with its own figures,” he said.

China Africa announced last week that it has postponed to mid-October the construction of its Gwayi coal mine and residential complex worth $100 million, the first phase of the ambitious $2.1 billion energy projects.

The phase involves civil works for the coal mine and a residential complex to house its workers.

As part of the first phase, the company has also indicated that with will construct a 300 megawatt power station at the site.

The second phase the power project will focus on methane gas extraction and the construction of another 300 MW plant by 2017.

China Africa is a 50/50 joint venture between Zimbabwe’s Old Stone Investments and Shandong Taishan Sunlight of China.- The Source

(92 VIEWS)