Maravi

Dr Kapoor advises govt to refocus Zesco operations

Dr Kapoor advises govt to refocus Zesco operations
By Joan Chirwa
Thursday August 14, 2008 [04:00]

GOVERNMENT should take a critical look at operations of Zesco Limited rather than focusing on the revision of electricity tariffs, World Bank country manager Dr Kapil Kapoor (left) has advised. Dr Kapoor said effecting an upward adjustment to electricity tariffs was not the solution to the current crisis in the sector.

He said the World Bank believes the energy sector presents a great opportunity for Zambia to develop its economy through exports of power, considering the tremendous potential for hydro-power generation.

"The issue is not just about having high electricity tariffs but also looking at operations of the power utility. As much as electricity tariffs need to be revised, the government should find out whether this utility is operating efficiently or not, and if not, then solutions can be found on how to make the company operate more efficiently," said Dr Kapoor in an interview.

"Zambia has tremendous potential for hydro-power generation because it has abundant water resources. Despite the potential the country has in terms of hydro-power generation, the question we are asking is why only two per cent of rural people have access to electricity?"

Dr Kapoor said the government should come up with right policies for the energy sector to ease electricity problems the country is currently facing.

"If the policies are right, then Zambia can become a net exporter of electricity," said Dr Kapoor.

"But because Zambia cannot export power even with the potential that is there for hydro power generation, then something is not going right. It is in this context that institutions such as the World Bank and the International Monetary Fund (IMF) have been advising the government on what best can be done in order to revive the power sector in the country. But if government is not comfortable with our analysis, then it can do its own studies on the sector and make recommendations."

Labels: ENERGY, INFRASTRUCTURE, KAPIL KAPOOR, ZESCO

posted by MrK @ 6:10 AM