- International news agency, Bloomberg, has reported that Zimbabwe’s state electricity company is awaiting the outcome of international arbitration in a currency dispute with the country’s biggest private power producer that’s holding up other investments.
Nyangani Renewable Energy, which operates solar and hydropower plants in Zimbabwe and Malawi, took the Zimbabwe Electricity Transmission Distribution Company (ZETDC) to the Johannesburg branch of the International Chamber of Commerce to rule on the disagreement over a currency conversion agreement.
“We eagerly await the outcome of the arbitration,” Ian McKersie, the managing director of Harare-based Nyangani said. “If it is favourable, it will allow us to resume the very conducive working relationships we have.”
The dispute was heard on 14TH June. Nyangani says it’s owed USD 8.6 million for power delivered from its 15 megawatt Pungwe B run-of-river hydropower plant. It wants to be paid in U.S. dollars but the Zimbabwe Electricity Transmission and Distribution Co., a unit of Zesa, is seeking to pay in Zimbabwe dollars. Zimbabwe’s currency isn’t accepted outside its borders.
Know more about the Pungwe B Hydroelectric Power Station HERE
Nyangani has built eight power plants in Zimbabwe since 2009 with a total generation capacity of 32 megawatts.
Author: Bryan Groenendaal