Zambia’s largest independent power producer Maamba Collieries – MCL has demanded that ZESCO should clear outstanding debts owed to the company so it can maintain efficient operations at its 300 MW coal-fired power plant.
MCL has stated that it has not been able to keep up a robust maintenance programme at its thermal power plant – which has been contributing significantly to the energy balance of the country due to a continued shortfall in monthly payments of its power bills by ZESCO, which is the state owned entity that has the mandate to transmit and distribute power throughout Zambia.
Maamba Collieries has however not disclosed the amount of funds owed, but has explained that the payment shortfall has left it with inadequate cash for conduct of operations, loan repayments and maintenance activities.
The company’s Chief Executive Officer Rear Admiral Shankar has stated that the cash flow shortage has resulted in the company being unable to sustain quality proactive maintenance to the 300MW facility, and the recent forced shutdown of one of its two generation units, halving its power supplied to the national grid to 130MW.
“Maamba Collieries makes a significant contribution to the national grid, and provides a vital diversification from the reliance on hydropower that has proved so vulnerable to climate change. We stand ready, willing and able to supply significant base load power to the nation,” he said.
According to the information availed to the Zambian Business Times – ZBT on October 30, 2019 by MCL Public Relations consultant Gillian Langmead, Shankar said the company has insufficient funds to pay for costly spare parts and maintenance as the project dues to the company’s principals equipment that it depends on, which he said is not a desirable situation in these times of energy crisis that the country is facing.
Meanwhile, the company has confirmed that one of its two units was forced to shut down on October 17, 2019 owing to technical fault and requires extensive attention from the equipment supplier.
Shankar further said the power plant requires intensive regular maintenance involving high expenditure for spares, support services from the equipment manufacturers and other maintenance activities adding that since the commencement of power supply in August 2016, there has been a continuous shortfall in monthly payments received from ZESCO against Maamba Collieries’ power bills.
The delayed repairs of the thermal power plant earlier during the day forced ZESCO to announce an extended 15 hour load shedding schedule across the country.
