Electricity tariffs could go up in Zimbabwe if a deal involving President Robert Mugabe’s in-laws goes ahead.
The Zimbabwe Power Company, the country’s official electricity generation enterprise, entered into a deal with Sakunda Holdings – a company with links to Derrick Chikore, brother of Simba Chikore, who is the husband of Mugabe’s eldest daughter, Bona.
The opposition People’s Democratic Party said the deal smelled of “outright nepotism”.
“We strongly condemn how the $200-million (about R2.8-billion) tender was awarded.
“It will result in an increase in electricity tariffs while leaving ordinary people in a worse position,” the party said.
The deal, which did not go through a tender process, will see Sakunda Holdings supply 200MW of electricity.
This will be through the Dema diesel plant project, at a cost of $194-million a year for 1072GWh of power, or 18.06 US cents per kilowatt hour – as opposed to 4.11c/kWh from Kariba and 7c/kWh from Hwange thermal station.