By Staff Reporter
POWER utility ZESA Holdings has entered into an agreement with an Indian company Jindal Steel and Power for generation of electricity in Zimbabwe.
The deal worth US$5 billion will see Jindal Steel and Power refurbishing the antiquated power generation units in Hwange.
The maintenance of the units will increase the power generation in Zimbabwe to 2000 megawatts.
Addressing journalists after a meeting with Jindal officials and President Emmerson Mnangagwa at State recently, ZESA chairman Sydney Gata pinned hopes on the deal to plug power deficits which have impacted key sectors of the economy.
“We are signing two agreements, one today (Friday), another one tomorrow (Saturday). It will be the biggest single investment this country has ever seen, not just in the power sector, but across the economic spectrum.
“Generally, as a guideline, we are talking about US$4 to US$5 billion of investment. That is a lot, because there is also transmission that comes with it, and mining, so it will be creating a huge number of jobs. So, there is a reason to be excited.
“We are signing two agreements, one today (Friday), another one tomorrow (Saturday). It will be the biggest single investment this country has ever seen, not just in the power sector, but across the economic spectrum.
“Generally, as a guideline, we are talking about US$4 to US$5 billion of investment. That is a lot, because there is also transmission that comes with it, and mining, so it will be creating a huge number of jobs. So, there is a reason to be excited,” said Gata.
Zimbabwe is in the throes of power outages which have been attributed to the archaic generation units at Hwange which have been breaking down at regular intervals. This has been worsened by the dwindling water levels at Kariba Dam.
This has left households and industrial companies enduring more than 12 hours of electricity blackouts.
Naveen Jindal said the deal would assist in alleviating energy deficits in the country.
“We would like to start at the earliest and contribute to making Zimbabwe self-sufficient in power generation. Electricity is a very important element to improve the quality of life and His Excellency, the President, feels that there should be no shortage of power in the country.
“There should be enough electricity for all the citizens, all the industries and all the commercial establishments,” he said.
