With a fully developed Konkola Deep, 609 GWh of electricity would only be needed to pump water. In a statement, the CEC says the goal remains that the electricity supply continues smoothly for all consumers in the Copperbelt province. “Pursuant to Section 81(1) of the Securities Act No. 41 of 2016, the Board of Directors of Copperbelt Energy Corporation plc (“CEC” or “the Company”) informs the Company`s shareholders and the market, that the Electricity Acceptance Agreement entered into on November 21, 1997 or the “BSA”) between CEC and ZESCO Limited (“ZESCO”) is expected to expire on March 31, 2020,” said Julia Chaila, company secretary. “The Government of the Republic of Zambia (GRZ) has informed the Minister of Energy and Zesco cec of its position that the BSA expires on the above-mentioned date and will not be renewed. GRZ and Zesco have informed CEC of their obligation to continue to provide efficient and economical supply to consumers on the Copperbelt, both during the period of validity and after the BSA. Cec wishes to underline its unwavering commitment to using its infrastructure and capabilities to ensure continuity and continuity of electricity supply to all Copperbelt consumers now and after the BSA. In the electricity sector, it is common to have long-term contracts, often between 15 and 25 years between energy companies. This is because an investor needs a huge capital effort to build an electrical infrastructure, always borrowed by lenders (both commercial and development banks), and the repayment of these loans is done over a long period, usually 10 to 15 years. Therefore, lenders want to be sure that the borrower will be able to repay the loan and a long-term agreement between the power producer and the buyer is needed to give lenders the comfort necessary for the loan to be repaid. Indeed, as everyone in the sector knows, the practice is that lenders require and verify copies of electricity supply contracts and insist, if necessary, on changes to their mandate in order to adjust the duration of the credit. Of course, it is important that the buyer is credible and that he is able to settle his accounts over the duration of both PPE and credit agreements. And Mr Nkhouwa revealed that the government has taken steps to have Zesco automatically take over the electricity supply in Copperbelt province from midnight until further notice.
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