Source: Cottco to set up energy plant in Muzarabani –Newsday Zimbabwe
THE Cotton Company of Zimbabwe (Cottco) is negotiating with its partners to establish an energy plant in Muzarabani to address power cuts, an executive has said.
Plans to build a power plant comes as the national grid has been unable to meet the country’s energy demands, leading to increased load shedding.
The energy deficit is attributed to climate change, which is lowering water sources for the Kariba South Hydropower Station and declining foreign currency to conduct regular maintenance at the Hwange Thermal Power Station.
Cottco chief executive officer Rockie Mutenha told NewsDay Business the company would set up an energy plant in Muzarabani which was expected to take off this year.
However, he did not reveal how much the project would cost.
Mutenha said the current power situation had choked the industry, forcing the company to go for more than five hours without power daily.
“Then the green energy project. This is meant to power the Muzarabani gin area. Currently, because of electricity supply problems we are experiencing, we are unable to gin for more than five hours a day in Muzarabani,” he said.
“We are expecting to generate more energy than we require and the excess energy will be directed into the national grid for consumption by other users of electricity in Muzarabani. The project has not yet taken off as we are still in discussion with partners, both financial and technical partners, but it should take off sometime this year.”
Mutenha also revealed other upcoming projects, including a partnership with a Chinese firm to install a 60 metric tonne plant in Gokwe.
Meanwhile, Cottco has paid 75% of what it owes farmers in foreign currency for the 2023-2024 season and has an outstanding amount of US$400 000 payable in Zimbabwe Gold currency to finish the debt.
“Our aim is to clear it before the marketing season commences,” Mutenha said.
The cotton farmers were initially owed US$23,6 million and a total of over US$23 million has been paid to date.
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