ZESA Holdings and the Reserve Bank of Zimbabwe (RBZ) have agreed on a payment plan to set off US$43 million in arrears owed to Eskom of South Africa for power supplies.

zesa220.jpgThe agreement on a payment plan was reached this Monday (today) among ZESA Holdings, RBZ and the Ministry of Finance and Economic Development officials as they looked at options to keep continuous supply of electricity from South Africa.

Information gathered shows that the payment plan will see a substantial amount of money being paid monthly to Eskom for the next four months to guarantee constant supply of 300 megawatts of electricity.

Sources that attended the meeting also revealed that ZESA Holdings officials will take the payment plan to Eskom this week as a way of assuring the South African power utility that they have the capacity to pay.

The payment plan is expected to avert massive load shedding as Eskom had threatened to switch off Zimbabwe following non-payment of electricity supply.

ZESA owes Eskom and HCB of Mozambique US$100 million and the local power utility had pledged to make monthly payments which they defaulted.

Zimbabwe was expected to have paid US$89 million of which they only managed to pay US$46 million leaving arrears of US$43 million.

The power utility generates at least 900 megawatts out of a demand of close to 1500 megawatts.

The gap is filled by imports from regional countries which require cash up-front.