ZESCO To Renegotiate Its Power Purchase Agreements With IPPS As A Way Of Reducing Its Debt

By Balewa Zyuulu

State owned power utility, ZESCO has disclosed plans to renegotiate its power purchase agreements with Independent Power Producers –IPPS- in an effort to curb its escalating debt.

As at end of April this year, ZESCO owed the Independent Power Producers approximately US$680 million.

ZESCO Finance Director, Saidi Chimya explains that most of the power the utility company is off taking from the independent producers is bought at a higher price than it is sold out to customers thereby making it difficult for the firm to sustain the debt.

Mr. Chimya spoke to Phoenix News in an interview.

PHOENIX NEWS

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