Mozambique: HCB reconnects power to Zimbabwe following partial payment of debt

14 January 2008

Maputo, Mozambique, 14 Jan – The Cahora Bassa Hydroelectric Dam (HCB) Saturday reconnected its power supply to Zimbabwe, which had been suspended since 1 January due to an accumulated debt of US$26 million, a company source said in Maputo.

The unnamed source cited by Portuguese news agency Lusa said that it had been possible to re-establish the power supply after ZESA, Zimbabwe’s electricity distribution and production company, had paid HCB US$10 million and pledged to pay off the remaining debt.

HCB’s board, which since the end of November of last year has been a majority Mozambican-owned company (Portugal has a stake of just 15 percent), had already said it was willing to re-connect Zimbabwe’s supply as soon as it paid at least US$10 million of the debt owed.

Julião Pondeca, assistant director of HCB’s board for Strategic and Commercial Development, had already said that HCB would immediately reconnect the power supply to Harare as soon as part of the debt was paid. (macauhub)

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