The thermal power plant operator relied on heavy fuel oil from the Indeni refinery, but the government’s strategy of closing the country’s only processing plant has meant it will have to source fuel for itself.
The Zambian government has said it is willing to buy as much of the planned Lobito refinery in Angola as the Luanda authorities are willing to sell.
Zambia has signed an agreement to start exporting an additional 80MW to Namibia, having agreed to a 100MW deal in 2020. Under the ten-year power supply agreement, state utility Zesco will earn $500m.
Zesco’s commitment to Sinohydro carries a sovereign guarantee, adding to Zambia’s huge commitment to Beijing. Over 30% of Zambia’s $14bn-plus sovereign debt is attributed to Chinese lending to Zesco for generation and transmission projects.
Key funders China Eximbank and ICBC have frozen lending to the 750MW Kafue Gorge Lower hydropower project, as state utility Zesco has been unable to meet its commitments. This has further delayed the flagship project’s completion, as lack of activity on Sinohydro’s construction site has become hard to disguise, writes Chiwoyu Sinyangwe in Lusaka
Chairman Vickson Ncube tells African Energy that the Zambian state-owned power utility is aiming to agree a new deal with power suppliers by June to prevent its debt burden rising further, writes Chiwoyu Sinyangwe in Lusaka.
A $260m programme to give 300,000 Lusaka residents access to electricity for the first time is due for completion next year, connecting at least 63,000 households, mostly in densely-populated and restive slums of the city.
France’s Total Eren and AIM-listed Chariot have signed an agreement to develop 430MW of solar and wind power to supply First Quantum Minerals (FQM)’s mines in Zambia.
Financial statements from Canadian-based First Quantum Minerals (FQM) show that Zambia’s largest miner was issued an arbitration award for its Kansanshi mine subsidiary in a case against national power utility Zesco.
The dramatic rise in oil prices driven by the war in Ukraine has added to rising fears that businesses will find large pump price increases unsustainable; pressure is mounting from private fuel importers and consumers for President Hakainde Hichilema’s government to reinstate the fuel subsidies it removed last December.
The Zambian government has shelved a plan to reintroduce taxes on imported fuel, in an effort to keep prices lower. In December, fuel prices increased after the government removed subsidies on petroleum products in an effort to better reflect market prices. Zambia has migrated to a monthly pricing cycle that makes local pump prices more responsive to shifts in international oil prices and foreign currency exchange rates.
The dire relationship between state utility Zesco and the Copperbelt Energy Corporation (CEC) has been transformed since President Hakainde Hichilema was elected in August and the two companies are now in talks for a new power supply agreement, almost two years after the previous one lapsed.
Zambia will this year stop importing crude feedstock for refining at the venerable Indeni refinery and instead rely on imported finished petroleum products, as part of reforms that will also see it step back from involvement in selling to consumers, energy minister Peter Kapala told Chiwoyu Sinyangwe in Kampala.
After reaching a preliminary agreement with the International Monetary Fund (IMF) over a $1.4bn bailout, President Hichilema’s government faces a stern test trying to convince the public that a hike in energy prices is needed to restore economic fitness, writes Chiwoyu Sinyangwe in Lusaka
Victor Mapani was appointed managing director of Zambian national utility Zesco with immediate effect on 3 December, following the departure of the controversial Victor Mundende. The appointment followed the replacement of the board of directors with six new members in November.
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