(Ecofin Agency) - The Zimbabwe Electricity Supply Authority (ZESA) has secured from a local financial institution $81 million to buy spares for power plants and stabilise national grid.

“The deal was signed last week and Zesa can start drawing down on the facility,” an unknown source told Business Reporter.

Out of the sum raised, $50 million was mobilized through the full subscription to the $50 million Zimbabwe Power Company bond issued by the Infrastructure Development Bank of Zimbabwe (IDBZ). “We are pleased to advise the market that the bond has since been fully subscribed,” the bank said.

$38.8 million from the bond-issue proceeds will be used to refurbish the Kariba hydropower plant and $11.2 million to re-power the Harare thermal station. Remaining $31 million will be used to improve national power transmission network as lot of its cables are old.

Zesa is owed around $1.1 billion by its customers. The authority, determined to recover its due, has recently brought to court some these customers.

Gwladys Johnson