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10/11/2004:

"Zimbabwe Pays Off Debts: Mozambique"

The Zimbabwean electricity company (ZESA) has now completely paid off its debts to Hidroelectrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa dam on the Zambezi in the province of Tete.

HCB, a company 82 per cent owned by the Portuguese state and 18 per cent by Mozambique, supplies Zimbabwe with 500 megawatts of power. For a lengthy period, Zimbabwe failed to pay, and ran up a debt which reached $42 million.

Although more Cahora Bassa energy is sold to the South African electricity company, Eskom, than to Zimbabwe, it is the latter which is providing the greater part of HCB's revenue,due to the low tariff paid by Eskom.

HCB is currently studying the possibility of building a second line from Cahora Bassa to Zimbabwe.

Source: poptel.org.uk