Bright Tembo, Business Reporter
ZESCO Limited has signed an additional 80 MW power supply contract with Nampower of Namibia.
The deal calls for Zesco to add 80 megawatts to the 100 MW the company has been supplying from 2020.
In return, Zesco would earn $50 million (about K874.4 million) per year for the next 10 years.
Signing the agreement, Zesco Managing Director Victor Mapani said the collaboration shows the continued trust between the two countries.
“One way to develop our countries is to provide electricity which is critical to mitigating the binding constraints to inclusive economic growth.
“As a concrete expression of our enduring relationship, today, we are signing a Power Supply Agreement between Zesco Limited and Nampower for the supply of 80 megawatts to Nampower,” he said yesterday.
“This signing ceremony is important as it is symptomatic of a robust and mutually beneficial relationship. Nampower has demonstrated to be one of our stable and reliable customers. We are happy that you see us as one of your preferred suppliers of electricity.”
Mapani said Zesco was committed to providing quality service to Nampower in honouring of the agreement.
“We also commit to provide you with quality and excellent services. We are also committed to expanding our support to Nampower, should our support be required. This collaboration demonstrates the continued cooperation and trust between the two utilities, and honestly, between the two countries,” he said.
“This agreement marks progress towards Zesco’s mission to innovatively ‘deliver excellent electricity and other energy services through effective and efficient work processes anchored on financial prudence as the hallmark’. Being an operating member of the Southern African Power Pool (SAPP) creates a great opportunity for Zesco to play a major role in trade in the regional power markets.”
Mapani said Zesco had embarked on an ambitious programme to position itself as a major power trading utility in the sub-region and beyond.
“Zesco has embarked on an ambitious programme to position itself as a major power trading utility in the sub-region and beyond through expansion and upgrading of transmission lines across the country to ensure stable supply for the local market and creating inter-face points with other utilities around the region,” said Mapani.
“We are equally cognisant of the growing demand for electricity in the country and the region. In light of this, we continue to invest in generation infrastructure so as to meet today’s needs without sacrificing the needs of the future.”
Nampower chief executive officer Kehenge Haulofu also urged Zambia to utilise the Zambezi link power transmission that the company has been using for years.
“We have Zambezi link which links our two systems together. This is a huge milestone in the relationship that we have and we are enjoying the power transfer through that line and we invite Zesco to make use of the extra capacity that is available especially when there is any need to do other business with any southern neighbours.”
Zesco is free to trade or do any bilateral agreement with Nampower to utilise that infrastructure,” said Haulofu.