mardi 19 février 2008

Mozambique reconnects Zimbabwe power after payment

Reuters, 18/02/2008

Mozambique has reconnected its energy supplies to Zimbabwe after the country settled part of its debt owed to Mozambique's state-run electricity firm, a newspaper reported on Monday.

Zimbabwe has pledged to settle $160million it owes to Mozambique's Cahora Bassa in six months, as it tries to ease a power crisis that has worsened the burden on its struggling economy.

The state-controlled daily paper Noticias, said Zimbabwe's Electricity Supply Authority, ZESA, in January paid $10-million after Cahora Bassa switched off power for non-payment.

"The important documents of this agreement were signed during the first week of February, in which Zimbabwe promised to settle the debt with our company in a six month period, at the same time paying their monthly bills," Cahora Bassa chief executive officer, Paulo Muxanga told the paper.

After non-payment, Cahora Bassa halved its power supply to Zimbabwe to 75 megawatts in mid-December, then shut it down on December 28 because ZESA had still failed to pay.

Zimbabwe's economy has been in severe crisis for several years, resulting in record inflation of over 66,000 percent in December and chronic shortages of basic goods like fuel, food and cash.