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ZESA to begin re-bundling of sectors utilities
- Five utility companies to be restructured
- Re-bundling was approved in 2018
The Zimbabwe Electricity Supply Authority (ZESA) has begun the process of re-bundling its electricity utility companies. The ZESA Chairman, Dr. Sydney Gata who appeared before the Public Accounts Committee made this known.
The ZESA in 1997 and later 2006 was unbundled into five utility companies. However, following the realisation that the unbundling had resulted in higher electricity costs for its citizens, the Cabinet in 2018 approved its re-bundling. It was announced that Consultants have been engaged to determine the best mechanism for the re-bundling.
The Management of ZESA in a new development has also been accused of illegally awarding a contract of Sakunda Holdings for the installation of the 200MW Dema Diesel Power Plant. The award of this contract is in violation of Zimbabwe’s procurement procedures.
In response to the allegations, the Chairman of ZESA, Dr. Sydney Gata responded saying, “We have noted the questions down and we shall respond in writing, the managers who were supposed to respond to those questions are not here, but we can research the facts and write to this honourable committee”.