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Moz reconnects Zim power
18/02/2008 14:21 - (SA)
Maputo - 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 has reported.
Zimbabwe had pledged to settle $16m it owed to Mozambique's Cahora Bassa in six months.
The state-controlled daily paper Noticias, said Zimbabwe's Electricity Supply Authority, ZESA, in January paid $10m 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 said.
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 had been in severe crisis for several years, resulting in record inflation of more than 66 000% in December and chronic shortages of basic goods like fuel, food and cash.
- Reuters
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