Maamba ‘cries’ for $350m debt from Zesco

ZESCO Limited owes Maamba Collieries Limited (MCL) $350 million since the company started supplying power in 2016.

Maamba Collieries Limited chief executive officer, Rear Shankar, said Zesco had not able to make full payment since inception.

Mr Shankar was speaking yesterday when the Energy Regulation Board (ERB) conducted a familiarisation tour of the power plant in Maamba.

He said this had made it difficult for the company to pay back its financiers.

He said that as a result, Maamba Collieries had defaulted loan payment this year amounting to $100 million.

He said that there were plans to expand power distribution of another 300 megawatts but with the current financial crisis, it would be difficult to do so.

"This year we were not able to pay back the loan amounting to $100 million which is a big crisis as financial institutions and banks do not take it lightly when you default.

"This is a growing concern we cannot continue operating in this manner, the power utility company has not been able to make full payments since we started supplying power," he said.

Mr Shankar lamented that the company has in the past four years been engaging Government and Zesco Limited.

He however disclosed that the company had a lot of support from Government.

And MCL Head of Corporate Affairs, Commodore Svduir, said that despite Zesco increasing electricity tariffs several times, it had not improved on its poor culture of paying the company.

Meanwhile, ERB senior manager consumer and public affairs Steven Bwalya said the organisation was promoting alternative sources of energy in the country.

“This year we were not able to pay back the loan amounting to $100 million which is a big crisis as financial institutions and banks do not take it lightly when you default.”

He noted that MCL contributed 10 percent of energy on the national grid hence the board would ensure that there was a level playing field.

Mr Bwalya said that $920 million investment is so massive and commended the company for contributing positively to the growth of the country.