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Chairman's statement
Zimbabwe Power Company
October 02, 2011

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Starting with the end in mind

It is important that customers are regularly informed of the stark reality of generation capacity in Zimbabwe. If the facts are understood then it is up to each individual to assess how best they can cope going forward into the next four to five years. There has been no meaningful investment in additional power since the 1980's - 25years! Over the past two and a half decades there has been major growth in our population as well as a population drift to the urban areas.

The demand for power is around 1,800 MW at daily peak and this is growing. Local installed operational capacity today is around 1,200 MW - so we have a gap of 30%. As ZPC implement their program to stabilise and optimise the generation capacity at all its stations over the next 12 months the supply will increase to 1,500 MW - but in the meantime demand will continue to increase.

The ONLY way to close this gap is to install additional capacity and the shortest timeline to achieve this is four years. So I urge all customers and stakeholders to understand this and take whatever steps they can to mitigate against this stunted power capacity.

I suggest that an Energy Forum is established amongst major customer groups to facilitate dialogue around this critical aspect of life in Zimbabwe. We need to seek solutions that will help address this shortage: remove duties on solar power equipment, remove duties on low energy power devices, change the building by-laws to insist that all middle and high income new houses use solar geysers, insist that new mines install solar systems in their housing and other water heating processes etc. Most importantly to engage in a national education campaign on how to be more economical in our power usage.

Other power producers need to be encouraged to enter the market. Licenses have been issued but it seems there is little appetite to invest, why? We need to debate these issues.

An Update on Capacity Expansion

Kariba and Hwange

There has been a very positive response to the "Expression of Interest" for the expansion at both Kariba and Hwange. The "Expressions of Interest" closed in mid-September and our team of Hatch, KPMG Consortium and management are reviewing the documents before making recommendations to the State Procurement Board. This will then be followed by a formal tender to prequalified companies.

To ensure that the momentum is maintained it is vital that the Independent Regulator is put in place outside of the Ministry and that this new body engenders the confidence of potential investors.

Small Thermals

WAPCOS (an Indian consultancy group in the power sector) will finish the feasibility studies to re-power the boilers at the small thermal stations. We then intend looking for funding / joint venture partners to help us carry out these upgrades.

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