Dear Stakeholders,
2019 has presented a very challenging operating climate for business and ZPC has not been spared. Be that as it may, we strived to maintain generation in the 3rd quarter amidst the various obstacles presented before us.
Our stations sent out a total of 1,505.44GWh of energy thereby missing the quarterly target which was set at 2,355.61GWh by 36.09%. This output is 67.48% below the output for the same period in 2018. For the year to date, ZPC has managed to send out 6219.28GWh and this represents a negative variance of 9.08%.
This is largely due to numerous challenges at Hwange with Unit 6 (one of the biggest units), being unavailable throughout the quarter due to a rotor earth fault. The lake levels at Kariba have also continued to drop, hence generation was curtailed to maintain the recommended generation levels as set by the regulator Zambezi River Authority.
Hwange Power Station generated with an average of four units during the quarter and sent out 839.12GWh of energy while the small thermals sent out a combined 56.23GWh of energy. Generation was constrained mainly due frequent coal stock outs at Munyati and Bulawayo Power Station.
Despite the challenges being faced, ZPC has been embarking on several efforts to increase power generation and we are currently working on the Hwange Expansion Project which shall provide the nation with an additional 600MW come January 2022.The billion dollar project reached its one year anniversary this quarter on the 1st of August. Progress has been satisfactory and on schedule at 23.2% by the end of the third quarter. Works currently in progress include Design Reviews, construction of employer’s accommodation, Units 7 & 8 construction, project site Clearance works by ZPC and preliminary transmission works.
Given that Zimbabwe’s economy is projected to grow and demand for electricity set to increase, ZPC is also focusing on reviving the existing coal plants as a way to augment power generation and the repowering of Bulawayo Power Station is going to be the first to be executed. The prequalification process for the EPC Contractor was concluded during the quarter with two bidders having been prequalified for the project. Preparation of tender documents for the project is currently in progress.
The company is also in the process of working on the 120 MW Mutare Peaking/ Emergency Plant which was awarded a licence by ZERA in July 2019. Contract negotiations for Feasibility Study Consultant and PPA initialling were done during the quarter, now awaiting contract signing and funding is now available for the first phase of the project.
In carrying out our operations, ZPC has made a continuous commitment to uphold a safe working environment for all its employees as our line of work can be highly dangerous. We recorded a total of nine (9) Lost Time Injuries for the Quarter under review. The cumulative Loss Time Injury Frequency Rate (LTIFR) for ZPC for the 3rd Quarter stands at 4.97. As a company, we continue to ensure that we improve working conditions and safety in the workplace as well as committing to achieving zero harm to our people, plant and environment in line with our ISO certification in Occupational Health and Safety.
A number of notable achievements were registered during the third quarter of the year, with our major project in Hwange running smoothly and credit goes to all members of staff for their collective contributions in their various work stations and departments. I would like to thank all of our stakeholders and employees for their resilience in these difficult times. As we embark on the last quarter of the year, my hope is that we continue to brave through the circumstances and work hard towards fulfilling our mandate of powering Zimbabwe into the future!