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Kunda admits govt’s manoeuvres on Zesco’s optical fibre network

Kunda admits govt’s manoeuvres on Zesco’s optical fibre network
By George Chellah
Sat 31 Oct. 2009, 04:01 CAT

VICE-PRESIDENT George Kunda yesterday admitted in Parliament that the government is handling issues of the optical fibre network through the privatisation of Zamtel.

But the Power Generation and Allied Workers Union of Zambia (POGAWUZ) has demanded that Zesco must run the fibre optic independently and compete in the telecommunication market according to its license.

Responding to a question from Kantanshi PF member of parliament Yamfwa Mukanga, who wanted to know why Zamtel laid its optic fibre on the ground instead of using the Zesco pylons, which is cheaper, Vice-President Kunda said the Zamtel board made the decision.

“Zamtel is an independent entity and a decision was made by the board of Zamtel. This is one of the issues we are trying to address through the privatisation of Zamtel so that we don't have duplication of infrastructure, duplication of technology,” he said.

And communications and transport deputy minister Mubika Mubika told parliament that the government did not award a US $2 million contract to RP Capital.

“The contract between the Ministry of Communications and Transport and RP Capital to valuate the Zambia Telecommunications Company (Zamtel) has added value to the potential sale of Zamtel by providing information on the actual value of Zamtel's assets and liabilities that is required by government and investors interested in buying shares in the company,” Mubika said.

“RP Capital was paid US $161,029.00 (K837, 347,888.00) for re-imbursables they incurred in the valuation of Zamtel assets. These funds were paid under head 51/01/9/11 (Valuation of government enterprises) in estimate of revenue and expenditure, 2009 (Yellow Book) of 2009.”

Asked by Luena member of parliament Charles Milupi if the government was concerned about the revelations on the internet about RP Capital, communications minister Geoffrey Lungwangwa said there were so many things on the internet.

“I don't think it's prudent for us to go by whatever is on the internet,” he said.

And POGAWUZ president Thomas Nyendwa yesterday stated that Zesco workers were deeply concerned on issues that tend to affect the state of the organisation physically, structurally or morale wise.

“Zesco is going through a period of 'acting managements' and the talk of privatisation, lease or sale of Zesco or any of its assets could not have come at a worse time. We call upon the Zesco board to exercise its duty and appoint or confirm a chief executive for Zesco without further delay.

Then and only then is it possible for us to assure our members that we have a partner, a management, that we can engage with and discuss not only short-term issues but long-term issues. It will then be possible for us or any interested person to know who to praise or blame for any happenings in Zesco,” he stated.

Nyendwa gave the union's position on the optic fibre network.

“It's our duty as workers' representatives to state that it will not be in the interest of Zesco and, by domino effect, its workers and the Zambian people to sell the Zesco fibre in any form to anyone,” Nyendwa stated.

“It is not in dispute that the Zesco optical fibre as implemented through the Optical Ground Wire (OPGW) is an integral part of the power transmission network. This wire shunts to ground excess and fault currents to protect transformers, generators and attached equipment. This adds to the supply of quality and reliable power and efficient service delivery.”

He stated that what the nation should apply itself to was how best Zesco could benefit from the unique position it finds itself in.

“It is the first on the market, it has the longest network (1700 Km plus), it can roll out fibre across the country faster and cheaper than any competitor and there is no competitor on the horizon (Zamtel fiber project has done more digging than laying fibre to the best of our knowledge),” Nyendwa stated.

“Commercialisation demands that Zesco runs as a profit-making organisation and optic fibre was one of the initiatives taken to improve among others the resource base of the company.

“The questions basically being asked are as follows: (1) should Zesco lease out the dark fibre, recoup the costs with a markup profit and focus on the energy business? (2) should Zesco be a carrier of carriers providing SDH, PDH, Ethernet, etc, services to organisations and service providers? (3) should Zesco partner with established telecommunication companies? These questions have long been answered.”

He stated that Zesco's intention was to be a Carrier of Carriers.

“This is evidenced by the acquisition of the carrier of carrier licence and a transmission capacity of STM16 (2.5G/s) upgradable to STM64 (lOG/s). Zamtel who could have been a potential partner refused the offer time and again and opted to go it out alone. It is not good business to continue discussions with Zamtel especially that it is about to be privatised,” Nyendwa stated.

“Our advise is let us wait for Zamtel to put its house in order then we can discuss and negotiate, as equals, with whoever takes control of Zamtel. This is how win-win relationships are built. It is only a strong Zamtel that can bring synergy to any partnership with Zesco, CEC or any, other optical fibre operator. Otherwise the sum of the whole will be less than the value of any of the parts.”

He stated that Zesco and Zambia needs every income it could get from its resources.

“Income from Zesco fibre is expected to grow the current K30 billion per annum to K200 billion per annum by the year 2020. This is at minimal extra overheads to the current wage bill and operational costs. This is money that Zesco can well use to expand its network without overburdening the taxpayer. This is money that can motivate the workers and bring industrial harmony,” Nyendwa stated.

“This is money that could cushion our customers from sharp tariff increases. This is money that we badly need!

As POGAWUZ our position is to let Zesco run the fibre optic independently and compete in the telecommunication market according to our licence. The proposed sale won't be in the best interest of the company and the nation at large as we'll live to regret and blame ourselves in future.”

Labels: CHARLES MILUPI, CORRUPTION, GEORGE KUNDA, OPTIC FIBRE, POGAWUZ, PRIVATISATION, ZAMTEL, ZESCO

posted by MrK @ 5:55 AM