Maamba collieries says Zesco not being truth

Maamba collieries says Zesco not being truth

Stop lying you owe us money, Mamba Collieries boss tells off Zesco

MAAMBA Collieries (MCL) needs ZESCO to clear outstanding debts owed to the company so it can maintain efficient operations at its 300 MW coal-fired power plant.

Due to a continued shortfall in monthly payments of its power bills by ZESCO, MCL has not been able to keep up a robust maintenance programme at its modern eco-friendly thermal power plant – which has been contributing significantly to the energy balance of the country.

The cash flow shortage has resulted in the company being unable to sustain quality proactive maintenance to the 300MW facility, and the recent forced shutdown of one of its two generation units, halving its power supplied to the national grid to 130MW.

“Maamba Collieries makes a significant contribution to the national grid, and provides a vital diversification from the reliance on hydropower that has proved so vulnerable to climate change. We stand ready, willing and able to supply significant base load power to the nation,” said Maamba Collieries Chief Executive Officer, Rear Admiral Venkat Shankar.

“But without payment from ZESCO – our sole source of revenue – we have insufficient funds to pay for costly spare parts and maintenance as also the project dues to our principal equipment supplier whose expertise we depend on, which is not a desirable situation in these times of energy crisis that the country is facing and may face over the next couple of years.”

The company confirmed that one of its two units was forced to shut down on October 17, 2019 owing to technical fault and requires extensive consultations with the equipment supplier.

A statement from ZESCO on October 18, 2019, attributed an additional three hours of load-shedding to the Maamba shutdown.

Typical of the state-of-the-art technology, the power plant requires intensive regular maintenance involving high expenditure for spares, support services from the equipment manufacturers and other maintenance activities.

However, since commencing supplying power in August 2016, there has been a continuous shortfall in monthly payments received from ZESCO against Maamba Collieries’ power bills, explained Rear Admiral Shankar.

The company has not disclosed the amount of funds owed, but explained that the payment shortfall has left it with inadequate cash for conduct of operations and maintenance activities.

“Maamba Collieries considers the emerging situation as being largely attributable to non-receipt of full payments from ZESCO, leading to MCL being cash strapped, which is increasingly beginning to impact the continued running of the plant and its machinery, and its ability to undertake repairs and proactive maintenance. Under these conditions we are unable to confirm the timeline for resumption of operations of the unit that is shut down or guarantee continued availability of the second unit currently operating,” said Rear Admiral Shankar.

“We are hopeful of ZESCO’s cooperation in meeting our monthly payments, which would ensure that Maamba Collieries will be able to run its plant at full capacity in these difficult times of acute power shortage,” he added.

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COMMENTS

WORDPRESS: 9
  • comment-avatar

    We should workup please why should we hold on to a dry tree honest can someone get fybar from a tree which has dry up please Christian nation

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    secret blower 3 weeks ago

    mamba is supplying power at double the cost of solar at 11 cents .also the plant is not fully invested by them.zesco and the govt has to pay about 75% of the cost of the plant about usd 500 m ,but full ownership belongs to mamba.
    using coal is an environmental hazard and is banned in many countries.the country has to pay the full price monthly regardless of whether the power is supplied or not.a very funny agreement.

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    This ZESCO will cause many innocent companies to go bankrupt because of its actions. To start with it is shameless. It got Eurobond funds, after misusing it and nothing to show, printed in big letters EUROBOND on some of it’s vehicles. Is ZESCO in vehicle leasing? If that’s how to show us how the funds were used, the entire ZESCO management and it’s Board needs their members heads examined.

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    Alexia 3 weeks ago

    Well done Maamba. Now we have seen them . Thank you for the information 

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    Alexia 3 weeks ago

    I knew that something was wrong somewhere because   loadsheding has become abnormal. They are making international trips every time and while they leave bills unpaid. These trips stop. How can people leave without electricity? That’s why Africans we are poor. Electricity is a big business. It brings in alot of money. 

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    James bond 007 3 weeks ago

    Thank you so much pf you’re doing good works.

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    Nyambe the Hero 3 weeks ago

    Since people are so gullible and easily forget.

    Zesco insolvent as PF milks it dry

    PF’s Cash Cow Milked to the Bone. The Patriotic Front is headed for doom financially as one of its main source of illicit cash has been depleted.

    According to a senior State House official, Zesco Limited is officially insolvent. The source has explained that President Edgar Lungu, concerned about the current electricity supply situation, asked Zesco to give him a situational analysis and update.

    When the classified information was rendered to the President in terms of the financial position of the power utility company, he was shocked to learn that the company is insolvent and it has been in red for the past two years.

    In fact for now, Zesco is not even in a position to contract new loans or power purchasing agreements (PPA) from any other supplier so as to mitigate the electricity Fiasco.

    Recently, the Zambian government had put up plans to import power from Mozambique but the current financial status of Zesco could not make it possible to do so as International lenders are not willing to take the risks to finance Zesco.

    Zesco has been a cash cow for PF’s finacial support. As Zambians may be aware, Zesco pays salaries for PF Secretariat staff and fund other party activities including traditional ceremonies and by-elections. It is Zesco which pays the PF Secretary General, the Deputy Secretary General, Media Director and his deputy. These party functionaries are paid by Zesco using psuedo names with fake National Registration Cards ( NRC) produced by the Office of the President Special Division. There are two Bulky ” Automated Teller Machines” that the Patriotic front government uses. These are the now bankrupt Zesco and the System.

    The source said President Edgar Chagwa Lungu is panicking as Zesco is the major donor of cash supply to PF cadres for political mobilisation and violence against the opposition and others deemed to be anti PF.

    The situation has resulted into a blessing in disguise as there have been a reduction in political violence due to lack of cash to finance the operatives. ”

    President Lungu’s other worry is that the electricity situation will have a direct bearing on low and middle income households especially on the Copperbelt. These include people who run Hair Saloons, Barber Shops and Welding or Metal fabrication businesses,’ the State House source said.

    Further, the source said the Financial state that Zesco is in might cause a run on the company by its creditors as you might know that Zambia has been downgraded to a Junk state by several credible international rating agencies.

    The potential run could lead to several companies working on the upgrading of electricity generation facilities to abandone works.The Senior State House official says Zambians should brace for worse days economically as the Electricity situation hampered by Zesco’s insolvecy will lead to increased cost of production for goods and services as most business entities will resort to alternative sources of energy.

    Source: Zambian Watchdog, 26 August,2019.

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    Nanaka 3 weeks ago

    PF and Lungu are a curse on this land. Don’t be surprised even if Tgechnologies rains come they with major floods

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    Henred 3 weeks ago

    Lord help us what a bloody circus. 130 mw is a joke in the overall scheme of the crises. Zesco is a known fail but a Rear Admiral running a power company in a land locked country takes the biscuit.