VZCZCXRO7202
RR RUEHJO
DE RUEHSB #0361/01 1241457
ZNR UUUUU ZZHZDF
R 041457Z MAY 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4435
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHDS/AMEMBASSY ADDIS ABABA 2920
RUEHKI/AMEMBASSY KINSHASA 0535
RUEHGP/AMEMBASSY SINGAPORE 0005
RUEHBJ/AMEMBASSY BEIJING 0096
RUEHKM/AMEMBASSY KAMPALA 2968
RUEHNR/AMEMBASSY NAIROBI 5409
RUEAIIA/CIA WASHDC
RHMFISS/JOINT STAFF WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEFDIA/DIA WASHDC
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RUZEHAA/CDR USEUCOM INTEL VAIHINGEN GE

UNCLAS SECTION 01 OF 02 HARARE 000361 
 
SENSITIVE 
SIPDIS 
 
AF/S FOR B. WALCH 
EEB/ESC 
CA/OCS/ACS/AF M. RAUGUST 
JOHANNESBURG FOR RCO M. VEASY 
NSC FOR SENIOR AFRICA DIRECTOR M. GAVIN 
TREASURY FOR D. PETERS 
 
E.O. 12958: N/A 
TAGS: ENRG ECON EINT CASC PGOV ZI
SUBJECT: ZIMBABWE'S ELECTRICAL WOES 
 
REF: 08 HARARE 000073 
 
HARARE 00000361  001.2 OF 002 
 
 
¶1. (U) SUMMARY:  Due to a lack of coal, aging equipment, vandalism, 
and general neglect, Zimbabwe's electrical power grid currently 
supplies only half of the country's demand.  The result is frequent 
load-shedding (blackouts) with many rural regions without power at 
all.  Although the Zimbabwe Electricity Supply Authority (ZESA) 
operates a 750 MW hydro-electric plant in Kariba, its nine 
coal-burning plants, with a design capacity of 1200 MW, only 
generate an additional 200 MW.  In a barter deal with Namibia, four 
of the coal-burning generators are being refurbished in exchange for 
up to 150 MW supplied to Namibia.  Compounding the basic lack of 
power generation are chronic problems with the country's step-down 
transformers, circuit relays, and transmission lines.  For the 
foreseeable future, insufficient electricity distribution will 
remain a significant constraint to Zimbabwe's economic recovery. 
END SUMMARY. 
 
-------------------------------- 
Problem Begins With Lack of Coal 
-------------------------------- 
 
¶2. (SBU) ZESA, a government-owned parastatal and sole electricity 
supplier in Zimbabwe, has come under increasing criticism for 
failing to meet the power needs of the country.  David Chikowore, an 
electrical engineer with ZESA since 1983, spoke openly about the 
utility during a meeting with conoff on April 22. 
 
¶3. (SBU) According to Chikowore, lack of sufficient coal is the root 
reason ZESA is producing only 50 percent of capacity.  In addition 
to a 750 MW hydro-electric plant at Kariba that is fully 
operational, Zimbabwe has six major and three supplemental 
coal-burning plants, all of which suffer from an insufficient coal 
supply.  Hwange, Zimbabwe's principal electricity generating 
facility, is comprised of six major coal-burning furnaces.  Four of 
the six are designed to generate 120 MW and two are designed to 
generate 220 MW.  The three supplemental coal plants, located in 
Harare, Bulawayo, and Munyati, each have a design capacity of 100 
MW.  Although the nine coal-burning plants have a total design 
capacity of 1220 MW, Chikowore said they are currently only 
producing, on average, 200 MW.  Further, the three supplemental 
plants in Harare, Bulawayo, and Munyati have been dormant and 
disconnected from the national grid since 2007, all due to a lack of 
coal. 
 
¶4. (U) Hwange is also the site of one of the largest coal mines and 
coal deposits in the Southern African region.  Like other Zimbabwe 
state-run enterprises, Hwange Colliery Company suffers from a severe 
shortage of working capital needed to repair and replace worn 
equipment.  According to MineWeb, a mining news reporting service, 
the Hwange colliery is operating at less than 50 percent capacity 
and suffers from chronic breakdowns of its heavy equipment. 
Unofficial estimates define Zimbabwe's monthly demand at 
approximately 400,000 tons, with Hwange supplying less than 180,000. 
 In 2007, Hwange Colliery estimated a need of USD 60 million to 
bring the mine back to normal capacity.  According to Chikowore, the 
Qbring the mine back to normal capacity.  According to Chikowore, the 
conveyor belt used to supply coal from the mine to the Hwange power 
generators has been collapsed for over a year, and the mine's 
principal heavy piece of equipment, its dragline, suffers from 
frequent breakdown. 
 
 
¶5. (SBU) Further reducing the output from the Hwange facility is an 
ongoing refurbishment of its generators.  In a USD 40 million deal 
brokered between ZESA and Nampower (Namibia's power utility) in 
2007, four of the six turbines are being replaced and the 
corresponding generators refurbished.  As part of the original deal, 
cash-strapped ZESA was to repay Nampower by supplying electricity; 
initially 50 MW in 2008, followed by an increase to 150 MW over the 
next five years.  Chikowore said the refurbishment had been delayed 
due to ZESA's inability to honor its side of the deal (supply power) 
and predicted the refurbishment at Hwange would continue into 2010. 
 
HARARE 00000361  002 OF 002 
 
 
In addition, Chikowore mentioned that the Hwange refurbishment only 
included the four smaller generators, and that the remaining 220 MW 
generators remain out of commission, without any prospect of 
repair. 
 
--------------------------------------- 
Can't Distribute the Power It Generates 
--------------------------------------- 
 
 
¶6. (SBU) Besides not generating enough ower, ZESA is also unable to 
equitably distribute the power it does generate.  Chikowore 
explained that power leaves the main plants at Kariba and Hwange at 
330 kilovolts on Zimbabwe's two main grid lines, and then is 
stepped-down through a series of transformers, switches, and 
distribution lines to 220 volts for consumption.  However, this 
whole distribution system suffers from years of vandalism and 
inadequate maintenance, resulting in large areas without power and 
cash-strapped ZESA unable to do anything about it. 
 
¶7. (SBU) Among the vandalism is theft of the transmission fluid from 
the step-down transformers and theft of the timbers used to string 
the transmission lines.  Chikowore explained that the same fluid 
used in the transformers can be used in diesel trucks and machinery. 
 He estimated that over 900 transformers were in need of service or 
replacement in Harare and Gweru alone.  In rural areas, the theft of 
wood timbers for firewood has caused whole power lines to collapse. 
 
¶8. (SBU) Chikowore also explained that frequent load-shedding has 
significantly increased wear on the switching and isolation circuit 
breakers.  Designed as a replacement item after approximately 2000 
cycles, many of these circuit breakers were experiencing 4000 cycles 
every six months.  With no money to replace them, he said ZESA was 
attempting to repair as many as possible, but admitted the repairs 
were crude and did not bring the breakers back to original 
condition.  In July 2008, a fire completely destroyed a major 
substation in Stampford, a suburb of Harare, which left much of the 
city without power for a month.  Chikowore said the fire was caused 
by a simple overload that should have been isolated through the 
protective circuit breakers, but that none of them were functioning. 
 Harare experienced another substation fire on April 25, which left 
much of the western suburbs without power. 
 
 
¶9. (SBU) When asked about the future, Chikowore gave a pessimistic 
prognosis, starting with the average tariff charged by ZESA.  In 
March 2009, amidst a public outcry, the government announced an 
increase in the average tariff from USD 0.041 to USD 0.075 (7.5 
cents) per kilowatt-hour, which Chikowore said is still a woefully 
low amount to fund capital improvement.  Chikowore believes the 
tariff needs to be approximately 11 cents.  By contrast, the average 
tariff is 9 cents in the U.S. and only 3.5 cents in South Africa. 
 
¶10. (SBU) COMMENT:  The electricity utility ZESA is another example 
of a bankrupt GOZ-owned operation.  Like Zimbabwe's rail, road, 
medical, and telecommunications infrastructures, Zimbabwe's 
Qmedical, and telecommunications infrastructures, Zimbabwe's 
electricity system will require years and hundreds of millions of 
dollars to repair.  In the short term, the public need for 
electricity is being supplanted by more pressing needs to fund 
teacher and civil-servant salaries by the cash-strapped government. 
Nonetheless, if the country is to experience economic recovery, it 
must restore power.  END COMMENT. 
 
MCGEE