Let’s Plan for Load-Shedding

FOLLOWING a dry spell which has adversely affected almost half of the country in the 2018-2019 rainy season, it has become necessary for power utility firm Zesco to ration the supply of power to its domestic and industrial clients.
Erratic rains have resulted in low water levels at Zesco’s hydropower plants such as Kariba Dam and Itezhi Tezhi.
Cutting back on electricity supply to households and industries will certainly have a negative impact on the economy.
However, it has become inevitable in view of the dry spell. If Zesco had a way, it would not resort to cutting back on electricity supply because this will eat into the power utility’s revenue base.
But this is the consequence of climate change which the country did not bargain for, but should now be planning ahead for. Plans that are already in place must be accelerated.
Now, households, businesses – small, medium and big – will have to come to terms with power rationing otherwise known as load-shedding.
When calamities such as droughts hit us, it reminds the country of the sad reality about the country’s over-dependence on hydropower.
Hydropower generation, despite being the country’s mainstay of electricity, is a risky undertaking due to its vulnerability to climate change.
In 2015, the country experienced a severe energy deficit and crisis on account of low water levels resulting in inadequate power generation.
The country’s hydropower resource potential is estimated at over 6,000 MW. Currently, the installed capacity stands at about 2,700 MW.
Of this, small- and medium-sized power generation accounts for less than two percent.
The country has rich potential in renewable energy resources such as biomass, solar, wind and geothermal, which are currently under-utilised.
That is why there has been emphasis of late for the country to seriously consider having a rich mix of energy sources.
Progress has been made with the thermal plant at Maamba Collieries Limited, built at over US$840 million and generating 300 megawatts which is fed into the national grid.
With the help of the International Finance Corporation and the World Bank Group, Government is putting up several solar power projects around the country.
The recent commissioning of the completion of the solar photovoltaic plant for the Bangweulu Power Company Limited in Lusaka South Multi-Facility Economic Zone is one of the perfect examples of Government efforts in embracing renewable energy.
There are also a couple of other projects in the pipeline.
However, the task of diversifying sources of energy cannot be left to Government alone. The private sector, too, should come on board if the country is to keep pace with economic growth.
At household level, families and individuals should consider switching to gas stoves as well as installing solar panels to ensure their critical gadgets are operational.
Zesco, on the other hand, should publicise the load-shedding schedule so that all power consumers are aware when they are going to be affected.
The power utility should also ensure that the power rationing should not hamper production levels in industries, farms as well as small and medium businesses remaining in business during the load-shedding period.
Zesco should come up with a win-win situation with industry by ensuring that industry is given power at the agreed time so that there is maximisation of limited resources.

Nava Bharat Ventures Ltd. – Update On Maamba Collieries Ltd., Our Zambian Step Down Subsidiary

..70% Receivables realized and Debt down by 25%..

The following perspective is in response to certain enquiries from the investors concerning our step down subsidiary, Maamba Collieries Limited, Zambia (MCL).

MCL has been operating an integrated 300 MW (2X150 MW) coal-fired power plant and selling power under a long term Availability Based Power Purchase Agreement (PPA) with ZESCO, the local Utility.

ZESCO has been effecting part payments on a monthly basis and bulk payments at different intervals, against power purchase from MCL and Investors will be pleased to know that as on March 31, 2019, MCL has already realized over 70% of the total amounts billed since synchronization of the power plant with the Grid.

We are also glad to inform you that MCL is up to date on all its debt service obligations and the long term debt is down by 25%.

Pdf Link: Nava Bharat Ventures Ltd. – Update On Maamba Collieries Ltd., Our Zambian Step Down Subsidiary

Maamba Colliers LTD Extract from 2018 Annual Report

Maamba Collieries Limited (MCL) reported total revenue of K1,172.00 million (US$122.73 million) for the year ending 31st March 2018 [(2017: K100.38 (US$10.18 million)] and had profit after tax of K148.87 million (US$15.59 million) [(2017:K211.2 million (US$2.15 million)]. The increase in revenue and profits was due to the recording of all revenue and costs from the Thermal Power Plant from the commercial operating date in August 2017. The company’s assets exceeded its liabilities by K1,172.1 million (US$123.50 million) as at 31st March 2018 (2017: K1,037.1 million (US$107.92 million). Additionally, the company had accumulated losses amounting to K675 million (US$70.69 million) [(2017: K842.72million (US$87.69 million)].

During the year under review, the 300MW Thermal Power Plant together with the 330kV Transmission Line and Kariba Water Pumping System were taken over from the respective Engineering, Procurement and Construction (EPC) Contractors by MCL. MCL is now operating and maintaining the facilities through its Operations and Maintenance (O&M) Contractor.

MCL extracted 530,030 tonnes of high grade coal (2017: 355,126 tonnes) and 120,893 tonnes of low grade coal (2017: 188,325 tonnes). Coal transported to the Power Plant was at 1,076,216 tonnes (2017: 555,810 tonnes). The Coal Handling and Processing Plant throughput was at 168,934 tonnes (2017: 199,487 tonnes).

The revenue and financial position of the company is expected to improve going forward given the commissioning of the Thermal Power Plant.

There were no dividends declared during the year under review (2017: Nil).

Maamba Colliers LTD Extract from 2017 Annual Report

Maamba Collieries Limited (MCL) reported total revenue of K100.38 million (US$10.18 million) for the year ended 31st March 2017 (2016: K121.9 million (US$12.34 million) and had profit after tax of K21.2 million (US$2.15 million) (2016: K52.85 million (US$5.35 million). The company’s assets exceeded its liabilities by K1,023.8 million (US$107.91 million) as at 31st March 2017 (2016: K1.180.61 million) (US$105.6 million)). Additionally, the company has accumulated losses amounting to K842.72 million (US$87.69 million) (2016: K999.49 million (US$89.4 million).

During the year under review, MCL commissioned the first 150 MW Thermal Power Plant in August 2016 and the second 150MW was commissioned in November 2016 and the Commercial Operations Date was set for 31st December 2016.Maamba Collieries Limited is currently supplying 270MW to ZESCO. The revenue and financial position of the company is expected to improve in the future after the commissioning of the Thermal
Power Plant.

There were no dividends declared during the year under review (2016: Nil).

Maamba Colliers LTD Extract from 2016 Annual Report

Maamba Collieries Limited (MCL) reported total revenue of K121.9 million (US$12.3 million) for the year ended 31st March 2016 (2015: K94.5 million (US$14.6 million) and had profit after tax of K52.9 million (US$5.4 million) (2015: Loss K503 million (US$0.069 million)). The company’s current assets exceeded its liabilities by K1, 180 million (US$105.6 million) as at 31st March 2016 (2015: US$103.7 million). Additionally, the company has accumulated losses amounting to K999.5 million (US$89.4 million) (2015: K1, 136.4 million (US$95.2 million).

MCL’s 300-megawatt fully integrated coal-fired power plant reached Financial Closure on 28th July 2015. The peak funding of the project was capped at US$843 million and funded on a debt/equity ratio of 70:30. ZCCM-IH and Nava Bharat (Singapore) Pte Limited (Nava Bharat) have contributed US$253 million toward the project, and US$590 million is debt in form of long term loans from Development Financial Institutions and Commercial Banks.

The power plant is the first private power project in the Sub-Saharan region to receive Export Credit Agency insurance cover from China Export and Credit Insurance Corporation (Sinosure).

MCL signed a 20-year power purchase agreement to supply 100% of the power plant’s output to ZESCO.

In May 2015, ZCCM-IH issued a letter of credit (LC) of US$8.75 million, through Standard Chartered Bank Zambia as a contingent equity support for the thermal power plant at Maamba. In support of the LC, the funds were placed as a fixed term deposit at a Kwacha interest rate of 14% and fixed exchange rate of K7.385/US$.

Subsequent to year-end, the first 150 MW was commissioned on 7th August 2016 and the next 150 MW was commissioned in November 2016 where after Nava Bharat will be responsible for the operation and maintenance of the power plant.

There were no dividends declared during the year under review (2015: nil).