Maravi

Power outage costs LCM $100m

Power outage costs LCM $100m
By Zumani Katasefa and Joan Chirwa
Tuesday January 22, 2008 [03:00]

LUANSHYA Copper Mines (LCM) has recorded a loss of about US $100 million following Saturday's power outage, chief operations officer James Bethel has said. And Economics Association of Zambia (EAZ) national secretary Chibamba Kanyama said the government should critically look at unbundling Zesco and allow serious investors to partner with the company in power generation and transmission.

Commenting on the almost seven-hour countrywide power outage last Saturday, Bethel said the company had its crusher motors damaged.

He said it would cost the company between US $3,000 and US $4,000 to replace the motors.

Bethel, however, explained that LCM used its backup power to evacuate miners from underground. He said the situation at the mine had normalised.

A check at Roan General Hospital on Saturday night found patients being attended to using candles as the hospital had no standby generators.

Luanshya member of parliament, Jean Phiri, described the situation as very sad and urged the Ministry of Health to ensure that hospitals in the district were supplied with standby generators.

Sources yesterday disclosed that Saturday’s power outage was caused by the collapse of the Leopards Hill - Kariba North Bank high voltage line that has been under maintenance for over two weeks.

The sources said Saturday’s power outage was very serious, as Zesco was currently struggling to have its Leopards Hill - Kariba North Bank high voltage line restored.

Zesco managing director, Rhodnie Sisala, on Sunday explained that the company was working round the clock to restore the 330 KV Leopards Hill - Kariba North Bank Line which collapsed due to heavy rains experienced last December.

Sisala said the collapse of the Zambian high voltage network also extensively affected the inter-connector system among Zambia, Zimbabwe and Botswana making it practically impossible for Zesco to import power from neighbouring countries.

Meanwhile, Kanyama said having major players in generation, distribution and transmission of power would reduce dependence on one source for electricity and subsequently check the frequent power outages.

“Government has allowed entry into the energy sector but there is nothing to do with the break-up of Zesco Limited,” Kanyama said. “With an increase in tariffs for the electricity sector, this is the right time for the government to have an aggressive marketing drive and target potential investors in the sector.”

Kanyama said Zesco Limited could remain a holding company representing government interests in the operations even after inviting a partner into the undertaking.

“Even after having a partner in Zesco, other investors are also needed to set up power generation plants so that there can be competition in the energy sector,” Kanyama said.

But energy and water development minister Kenneth Konga said the government had no power to direct Zesco on partnerships.

“The Energy Act which was recently passed allows for more investments in the energy sector, but in terms of having a partner for Zesco, only the board can make such a decision since it supervises the operations of Zesco’s management,” Konga said.

Commerce minister Felix Mutati said the government would focus on strengthening the Zambia - DRC and Zambia - Tanzania power inter-connectors.

“Strengthening of the inter-connectors with other countries is very key in improving the supply of electricity in the country,” Mutati said.

“In terms of generation, Zesco has already partnered with foreign companies such as Sino Hydro and Tata under its major projects that will raise the company’s total generation capacity in line with the growth in demand for electricity.”

Labels: EAZ, LUANSHYA COPPER MINES

posted by MrK @ 6:17 AM