By OLIVER SAMBOKO
UNBUNDLING of Zesco will not only remove monopoly but also lead to increased investment in the energy sector, says former Transport and Communication Minister, Brian Mushimba.
Dr Mushimba said in its current state, Zesco is a weak link and a major liability in the country’s national development agenda.
He said if the country is to reform the electricity subsec- tor, there is need to improve operational performance through unbundling Zesco.
He also said the move will result in increased private sector participation in the sector, and one way to do this is through enacting strict reforms that include installation of a robust, credible and inde- pendent sector regulator.
“With that done, the sector will subsequently flourish as competitive forces take over the space especially in the power generation and distribution spaces,” said Dr Mushimba.
He said Zambia will not be the first country to undertake unbundling of its state-owned power utility company, as oth- ers within and outside Africa have gone through the process and recorded successes.
“Over the last 25 years, countries like Egypt, Kenya, Uganda, Tanzania, Senegal, Colombia, Ukraine and Viet- nam, have unbundled their power utilities with varying results driven by their commitments to the objectives of the exercise and the quality of execution of the planned path, which Zambia can learn from,” Dr Mushimba said.
He said as the country plans to structure Zesco, key dimensions such as security of supply, tariffs, access and op- erational efficiency should be taken care to ensure any success.
Dr Mushimba gave an example of Uganda where after the restructuring, the coun- try’s hydropower generation capacity, increased from 150MW to over 1, 600MWs af- ter unbundling.
He said this was done through construction of a power generation station on the Nile River as well as small- er independent power projects scattered across the country.
Author
