The Zimbabwean authorities confirmed the country would soon renew the trilateral power supply agreement with South Africa and Mozambique to bring at least 550MW to the national grid from the regional utilities.
The document initially signed in 1990 allowed the Southern African state to use the hydropower assets at the Cahora Bassa lake in Mozambique, more precisely, a part of it shared with the South African energy utility Eskom.
However, the officials have not re-signed the agreement since 2012 and now Zimbabwe needs to clear its arrears to unlock the energy source again.
“This trilateral agreement provides Zimbabwe first right of refusal to import 500MW of firm power at a very competitive tariff from Cahora Bassa,” Zesa executive board chairperson, Dr Sydney Gata, advised.
According to the Zesa head, the measure will cover the energy demand in Zimbabwe and help avoid severe load-shedding experienced in the state last year.
Harare has already taken a US$100 million bank loan and is now awaiting the transfer completion.