From: barnhart@ddsw1.MCS.COM (Mr. Aaron Barnhart)
Subject: IPS:ZIMBABWE: POWER PLANS RULE OUT PRIVATISATION OF UTILITIES
Date: Wed, 30 Dec 1992 01:23:12 GMT
Organization: Evanston, Illinois, U.S.A.

Copyright Inter Press Service 1992, all rights reserved.  Permission to re-
print within 7 days of original date only with permission from 'newsdesk'.

Title: ZIMBABWE: POWER PLANS RULE OUT PRIVATISATION OF UTILITIES


an inter press service feature

by godfrey karoro

harare, dec 16 (ips) -- the launch of the 2.3 billion u.s.
dollars project to double zimbabwe's power generation capacity
in 15 years' time is just the right tonic the country's
commerce, industry and domestic sectors have been waiting for.

the southern african country has been subjected since may to
sporadic load shedding and power rationing to all consumers,
triggering an outcry from both domestic consumers and
manufacturing concerns who were forced to cut production.

according to the zimbabwe association of business
organisations (zabo), load shedding will cost the country up to
57,000 jobs and 2.4 billion u.s. dollars in lost revenue.

to forestall such an eventuality, the government has
approved the 15-year project aimed to rehabilitate the old
thermal stations by 1995, improve generation at kariba
hydro-electrical scheme and source power from cabora bassa in
mozambicaque by 1996.

as zimbabwe has one of the largest coal deposits in the world,
two more thermal stations will be constructed at hwange by
1999, while the batoka gorge hydroelectrical scheme on the
zambezi river are scheduled to be commissioned by 2004, thereby
effectively increasing generation capacity to 3,500 megawatts a
day from the current potential of 1,920 megawatts.

zimbabwe's power project dovetails with the findings of the
international finance corporation (ifc) which shows that the
demand for electricity in developing countries will grow by 6.6
percent a year in the 1990s as new industries and consumers use
more electricity.

''once the programme is completed, we will actually be an
exporter of energy'', boasted zimbabwe's transport and energy
minister, dennis norman.

industrialists here, however, blame government interference
in the affairs of the zimbabwe electricity supply authority
(zesa), the sole power utility.

autonomy for zesa or privatisation of the sole power authority
would do much to improve efficiency and ensure regular supplies
of electricity rather than management reshuffles and appointments
which are politically-interefered with. (more/ips)


zimbabwe: power (2)

''men who want to do good are frustrated. management just has
to be empowered to do what needs to be done without decisions
that are operational having to be subject to the ministry of
energy whose decisions are also subject to the ministry of
finance'', argues peter robinson, a consulting economist.

the zimbabwe government, however, believes commercialisation,
rather than privatisation, of the power utilities is the most
feasible option to guarantee adequate supplies of electricity.

while the energy minister launched the multi-million dollars
project, the minister of finance stressed that zimbabwe's aim is
to make all public companies viable and those that cannot should
''go under''.

finance minister bernard chidzero told journalists recently
that parastatals will be given more freedom to run on a
commercial basis -- charging commercial rates and stressing
efficiency.

zesa, for instance, has increased tariffs by a whoping 75
percent this year and charges will go up again in march by 24
percent.

norman explained that the tariff increases are part of
measures to improve zesa's financial position to fund current
expenditure, various expansion and rehabilitation programmes of
power transmission and generation capacities.

''it is my hope that electricity problems should be over by
january. we also have to double our energy capacity up within the
next 15 years'', said the minister.

''the policy is based on formulating clear energy pricing in
order to avoid subsidisation but for zesa to charge economically
reasonable tariffs'', he added.

zimbabwe's electricity tariffs are, despite the recent
increases, still among the lowest in southern africa.

for instance, botswana charges approximately 66 u.s. dollars
per 500 kw of domestic electricity supply, south africa 28
dollars, malawi 20 dollars, while zimbabwe charges only 15
dollars for the same amount of electricity.

the consumer council of zimbabwe (ccz) is not amused with the
rapid tariff hikes, which the organisation attributes to
inefficiency and corruption.

''the fact that zimbabwe has one of the cheapest tariffs one
can find in the world is no excuse to hike power tariffs willy-
nilly because we want to remain the cheapest for the benefit of
the consumer'', ccz managing director muchaneta nyambuya reacted.
(more/ips)


zimbabwe: power (3)

however, a commercial bank economist said with such low
charges, it would not be easy for anyone to invest in
electricity generation in zimbabwe. he added that imposing the
full-market rate would also hit industry hard.

''zesa is too big and the utility still needs a lot of
development. who would buy it?'' the economist, who refused to
be identified noted.

''if zesa levies commercial rates, it can only hope to break
even. as operations become more commercialised, private
investment could come in the form of small generators to augment
the existing supplies'', said the economist.

commercial farmers have already embarked on such schemes,
importing about 800 generators in the past few months to beat the
power crisis and ensure that the 1992/93 tobacco crop is not
affected by power cuts.

norman, however, is convinced that the measures being
undertaken by government will stabilise and improve the power
situation in order to satisfy all consumers.

''it is difficult to predict the future with accuracy but if
all goes well we should improve from where we are'', said norman.
(end/ips/gk/apc/92)