- IPP takes ZETDC to court
- Accuses ZETDC of refusing to pay its invoices in USD
Zimbabwean Independent Power Producer (IPP) has taken the state-owned Zimbabwe Electricity Transmission and Distribution Company (ZETDC) before the International Chamber of Commerce (ICC) over a payment dispute. Nyangani Renewable Energy (NRE) which operates a 15 megawatt (MW) hydroelectric power scheme, Pungwe B Power Station, has accused the ZETDC of failing to pay for power purchased under its existing Power Purchase Agreements (PPAs) in the United States Dollar (USD) currency.
A Spokesperson for the NRE, when discussing the dispute, said, ”The dispute that has arisen is the currency of payment,”
”It is Pungwe B’s case that the PPA is denominated in US dollars, and payment should be in US dollars. ZETDC is resisting such interpretation of the contract and has fallen in arrears with US dollar payments due to Pungwe B.” he added.
”If ZETDC does not honour its contractual obligations to Pungwe B, it is likely that no new developer will have confidence in ZETDC as a reliable counterpart. This could deter other IPPs from investing in Zimbabwe, disrupting the IPP programme and impeding the country’s development,” the Spokesperson said.
The NRE is one of Zimbabwe’s largest IPPs, with eight power plants with a total capacity of 32MW. The spokesperson for state-owned ZESA Holdings, Priscah Utete, declined to comment on the matter.