Cabinet exempts Hesco from long-term coal supply agreements

01 Jun, 2022 - 00:06 0 Views
Cabinet exempts Hesco from long-term coal supply agreements Hwange Expansion Power Project

The Chronicle

Sikhumbuzo Moyo, Senior Reporter
CABINET has exempted Hwange Electricity Supply Company (HESCO) from entering into long-term coal supply agreements under the Hwange Expansion Power Project.

HESCO is a $1,5 billion project funded by China Exim Bank, Sinohydro and Government through the Zimbabwe Power Company (ZPC).

Sinohydro is undertaking the expansion project in conjunction with ZPC.

The project, upon its completion, is expected to improve power supplies from 600MW to 1200MW and has already created employment for locals in line with the Second Republic’s Vision 2030 which aims to transform Zimbabwe into an upper middle-class economy.

Speaking after yesterday’s Cabinet meeting, Information Communication Technology, Postal and Communication Services Minister Jenfan Muswere said: “Cabinet considered and approved the exemption of Hwange Electricity Supply Company (HESCO) from entering into long term coal supply agreements under the Hwange Expansion Power Project as presented by the Honourable Vice President and Minister of Health and Child Care, Dr C.G.D.N. Chiwenga.”

The Hwange expansion project is expected to significantly contribute towards the revitalisation of the agricultural, industrial, manufacturing, and mining sectors as the nation seeks to attain security of electricity supply.

Minister Jenfan Muswere

“The nation is informed that Government embarked on various infrastructural projects to underpin the transformation of the country’s productive capacities. One such landmark project is the Hwange Expansion Power Project, which is expected to significantly contribute towards the revitalisation of the agricultural, industrial, manufacturing and mining sectors.

On completion, the project will contribute an additional 600 MW to the national grid,” said Minister Muswere.

The Hwange Power Station has a capacity of 900MW but is currently generating 600MW.

Meanwhile, in line with the National Development Strategy (NDS1 2021-2025), Government undertook to develop the Tourism Satellite Account (TSA) in order to improve the accounting of the performance of the Tourism Sector with the study revealing that tourism is contributed US$1 964 592 880 towards the Gross Domestic Product (GDP) with Government underscoring the need to triple growth in the sector to reach the target of a US$5 billion tourism economy by 2025.

Minister Jenfan Muswere

The Government also revealed that domestic tourism contributed US$765 724 073.

“The nation is informed that the major findings of TSA are as follows; that currently, tourism is contributing US$1 964 592 880 (4.5 percent) to GDP.

There is need to triple growth in the sector to reach the target of a US$5 billion tourism economy by 2025, that the tourism sector directly employed 99 141 people in 2018.

Domestic tourism contributed US$765 724 073 compared to US$1 198 868 807 inbound tourism expenditure and should be supported,” said Minister Muswere.

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