ZiG payments pose a headache to Independent Power Producers
By Elizabeth Kucherera
ZiG payments have created a problem for Independent Power Producers (IPP), whose operations are mostly driven by the greenback.
“Last weekend we got paid, but in the space of a day, what we were paid was worth half of ots value. This does not make our project viable,” Mr Lan McKersie, managing director of a Manicaland-nased IPP said.
Mr McKersie said this during a tour by Finance, Economic Development and Investment Promotion Minister Prof Mthuli Ncube of the Nyangani Renewable Energy project in Honde valley.
Despite their significant contribution to the region’s power growth, Nyangani Renewable Energy are struggling to meet their foreign currency commitments.
“We are being paid in local currency but have commitments in foreign currency,” McKersie said.
Nyangani Renewable Energy plant feeds approximately 3.5 megawatts per hour into the national grid. It has a total of six power stations in Honde valley producing 27 megawatts per hour.
Local leaders expressed appreciation of the Minister’s visit and tour of Nyangani.
“This is a very important visit in Manicaland and we are unique because of our terrain.
“There is potential to do more projects of this nature and to invite the investors to come and establish more hydro-plant so that our economy can grow,” said Provincial Development Co-ordinator Abiot Maronge.