Maravi

Yaluma vows to 'defend' Zesco's optic fibre

Yaluma vows to 'defend' Zesco's optic fibre
By Joan Chirwa-Ngoma
Thu 05 July 2012, 13:24 CAT

ENERGY minister Christopher Yaluma says he will heavily defend Zesco's optic fibre from being ceded to Zamtel unless the latter agrees to pay the capital expenditure invested by the power utility.

Government sources have disclosed that Zamtel, through managing director Dr Mupanga Mwanakatwe, is pushing to wrestle back the Zesco optic fibre from the power utility after the government reversed the sale of the telecommunications company.

And communications minister Yamfwa Mukanga said he would like to see Zamtel takeover the Zesco optic fibre, saying "Zesco is a company that is supposed to execute electricity and energy-related issues, and communication issues are for Zamtel" and that Cabinet will decide on the matter.

But Yaluma yesterday said Zamtel should rent the facility from Zesco like any other business entity because he was not ready to yield to maneuvers to have Zesco's optic fibre given to Zamtel.

"A wrong thing was done which we reversed and gave back Zesco's optic fibre to the company. But now they want this same fibre to go back to Zamtel. I am failing to understand why they are jumping up to talk about getting Zesco's optic fibre," he said in an interview.

"I will defend it (Zesco's optic fibre) to the core. I know the use of that fibre. Anywhere in the world, telecoms companies own their assets...And Zamtel and Zesco report to different boards and have different deliverables to be met. So I will it defend heavily. If they want to take the optic fibre, we will give them at a cost. We know how much was involved. We shall sell the asset to them then. They shall pay us the capital expenditure which Zesco incurred to install the fibre around the country. And then we gonna tell them, 'whatever we need to use, we will pay rent'."

In 2010 at the height of the controversial sale of three quarters of Zamtel to LAP GreenN of Libya, former president Rupiah Banda's government forced Zesco to cede its optic fibre cable to Zamtel but still has to settle the US $13 million loan for laying it.

However, following the reversal of the US $257 million Zamtel sale in January 2012, the government instructed that the optic fibre be returned to its rightful owners - Zesco - while Zamtel should pursue its own optic fibre project or rent the facility from Zamtel at a commercial rate.

But according to government sources, Dr Mwanakatwe is pushing for the return of the optic fibre to Zamtel, an asset industry sources say contributed "massively" to the quick turnaround of Zamtel in the aftermath of the 2010 privatisation.

"Zesco saw the need for optic fibre. Fibre is a key component of network operations, to operate remotelyand to monitor network performance, among many other uses. There are more uses for fibre. It can be used by the police for surveillance. We can have cameras in town using optic fibre to see what's happening in town. So Zamtel can come and hire other channels for from the optic fibre. Why should they own it?" Yaluma asked.

"The previous regime grabbed the optic fibre from zesco, it was wrong, it was unethical. Whatever Zesco has installed is theirs. Zesco fibre is non-negotiable and it belongs to Zesco. I am an engineer who once worked for Zesco so I know what fibre can do…"

He said Zesco identified the need for the installation of optic fibre on its network and would not give up the facility at no cost.

"We knew what industries would need from us. Let Zamtel keep the fibre they installed, let Zesco keep the assets. They are both parastals, and they are going to show their balance sheets at the end of the year that will show their viability and also asset base," said Yaluma.

Zesco over five years ago embarked on optic fibre installation on its power lines to boost its internal communications while Zamtel opted to singlehandedly install their own in the ground across the country, a move that was seen to be highly risky owing to increased vandalism.

The telecommunications company which invested US $50 million in its optic fibre project turned down Zesco's offer for a joint undertaking on the existing power lines.

Labels: OPTIC FIBRE, YAMFWA MUKANGA, ZAMTEL, ZESCO

posted by MrK @ 8:08 PM