Tuesday, February 16, 2010

Zesco, CEC eye Liberian electricity corporation

Zesco, CEC eye Liberian electricity corporation
By Kabanda Chulu in Kitwe
Tue 16 Feb. 2010, 04:01 CAT

ZESCO Limited and Copperbelt Energy Corporation (CEC) have submitted a joint bid that has been pre-qualified to operate the Liberian National Electricity Corporation. And CEC is still interested to participate in developing the Kafue Gorge lower hydro power station.

Announcing the partnership with Zesco last week, CEC managing director Neil Croucher said the two Zambian power utilities have the capability to help restore full electricity supply to the Liberian people.

“Due to the war, infrastructure is run down especially in the electricity sub sector and together with Zesco we hope to sign a management contract to operate the Liberian National Electricity Company and together we believe we have the expertise to efficiently operate that utility and our bid has been pre-qualified to the next stage whose outcome will be announced by March 16,³³ 2010,” Croucher said.

“In the event that we are unsuccessful, we will have demonstrated our ability to work with Zesco as a partner in a high profile international project. This will send a positive message to the international community that Zambian entities are competitive and competent in the management of power systems.”

Recently, a team from CEC completed a consultancy assignment in the Gambia that was aimed at launching the transmission system management thus show-casing the recognition that CEC commands within Africa for its skills in designing and operating transmission system.

On the second line of the interconnector with the Democratic Republic of Congo (DRC), Croucher said two separate tenders had been issued out with one looking at the supply and transmission line while the other would be for the power sub-station.

“We expect completion and commissioning of the project to take place this year or early next year and we have been holding regular meetings with SNEL DR Congo national power utility to find out how they are doing that side,” Croucher said.

“We have also written to government requesting the rights to construct a high voltage transmission line from the Copperbelt into the Luapula Province and we are hoping for a positive response since we believe there is a huge potential across the pedicle road that requires to be serviced.”

He said the future of the Zambian economy lay in investing in the development of existing and new power generation projects.

“We anticipate demand to increase by 40 per cent from our existing and new customers and as economic growth rises, we shall soon get back to power shortages hence the way forward lies in development of brown and greenfield power generation projects,” Croucher said.

“And this is why we are looking forward to develop the Kabompo gorge project and we are still interested in the Kafue Lower project and we submitted bids expressing interest and we are just waiting for the next stage in the process.”

Croucher expressed optimism that 2010 would result in positive business operations.

“The effect of falling copper prices caused a reduction in CEC’s capacity sales to mining customers of 24 per cent from an average of 532 mega watts during 2008 to a low point of 404 mega watts in September 2009. Copper prices are increasing but consumption patterns have not reached the level it was before the global economic recession since current capacity sales are hovering around 430 mega watts,” said Croucher.

“We are hopeful that things will improve especially that we are seeing a recovery, with activity re-commencing at Luanshya Copper Mines and Chambishi Metals and continued investment by Konkola Copper Mines to expand both its mining and smelting capacity.”

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