Mozambique power firm terminates Zesco power agreement

 Mozambique power firm terminates Zesco power agreement

EDM, Mozambique energy utility has terminated export of electricity to Zambia’s Electricity Supply Corporation (ZESCO) over outstanding debt.

Back in March 2016, Mozambican president Filipe Nyusi and his Zambian counterpart Edgar Lungu launched a 100MW floating power station in Nacala, Northern Province of Nampula to much fanfare.

The initiative was to boost power supply between the two neighbouring countries.

The supply agreement between the two countries has now formally ended with Mozambique’s power utility firm.

Mozambique’s Electricity utility Electricidade de Moçambique (EDM) exports to Zambia Electricity Supply Corporation (ZESCO) continue to cost that country dearly, Mozambican Newspaper ‘Verdade’ reported.

In addition to the environmental damage caused by the floating power station docked in Nacala, Verdade found that the supply contract which has ended with Mozambique’s power utility, ZESCO still owes 3.7 billion meticais or US$57,281,550.00.

The expectations expressed by the presidents of Mozambique and Zambia, Filipe Nyusi and Edgar Lungu respectively, of “energy cooperation for the benefit of citizens and economies”, expressed when they inaugurated the Floating Thermoelectric Power Plant in Nacala, Nampula province, have thus been frustrated.

Following EDM suspending supply to Zambia in December 2016 over accumulated debts amounting to 6.7 billion meticais (US$ 103,726,050.00), Verdade has now ascertained that the contract with ZESCO has ended and was not renewed.

The Independent Observer

https://tiozambia.com

John Sakala is a Journalist yearning for independent journalism

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