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POLICY is need to establish whether or not these support reforms that will help promote
individuals are on ZESA’s payroll and if not, electricity trade in West Africa.
Zimbabwean minister Chasi the basis upon which they were engaged Development Policy Financing Programme
The West Africa Regional Energy Trade
and any other conduct that the board finds
calls for probe into Zesa appropriate to investigate. (West Africa Energy DPF) seeks to remove
“You are, therefore, instructed to give this
barriers to electricity trade, which will lower
corruption matter all the urgency it deserves to ensure electricity costs for consumers, support
that it is resolved within the shortest time
the competitiveness of firms and improve
Energy Minister Fortune Chasi has directed possible to allow the board to concentrate on resilience and reliability of supply.
the ZESA board to institute investigations its key mandate, that is enduring availability Currently, only 50% of the population in
into corruption allegations levelled against its of power.” West Africa have access to electricity, and
executive chairperson, Sydney Gata. Gata was first appointed as chief executive those who do, pay among the highest prices
Chasi wants the investigation to be done of ZESA in 2000, before assuming more in the world – more than double those of
and completed within five working days power in 2003 as executive chair. consumers in East Africa.
arguing the charges were grave. He also once served as a general manager In addition, due to operational deficiencies,
“The allegations appearing in the press are at the power utility. electricity services are unreliable, with an
of a serious nature, which does not only put During his tenure, trustees of the ZESA average of 44 hours of outages per month.
ZESA Holdings in bad light but the entire pension fund opened an investigation into Over the past decade, member countries of
government and the ministry in particular,” he allegations by the Zimbabwe Electricity the Economic Commission of West African
wrote Monday to the board. Energy Workers’ Union (ZEEWU) that Gata States (ECOWAS) have been working --
“In particular the ministry requires allowed some senior managers to dip into the through the West Africa Power Pool (WAPP)
information on the lawsuits between Dr. Gata pension fund. -- towards a fully integrated power market.
and ZESA Holdings and whether or not they In 2004, when the entire ZESA board was Within a few years, they will have
were declared to the board, as the ministry is dissolved, Gata remained. completed the primary interconnectors that
not aware of any such declaration. will link them together.
“The allocation of five company vehicles The West Africa Energy DPF supports a
for Dr. Gata’s personal use, the alleged policy reform programme being implemented
interference in a disciplinary hearing INVESTMENT by Burkina Faso, Côte d’Ivoire, Guinea,
involving Mrs. Norah Tsomondo, the alleged Liberia, Mali and Sierra Leone, to facilitate
transactions involving Tuli and a trust, whose World Bank to lend $300mn trade in cleaner low cost electricity generated
registration and ownership is unknown to the from gas, hydropower and renewable energy
ministry.” for West African power across borders.
In his letter, Chasi added: “The issue This will replace the more expensive
concerning the four consultants for whom The World Bank has approved today a total electricity generated from inefficient small-
Cabinet authority was sought to travel to of $300mn in International Development scale oil-fired and diesel generation and
South Africa study tour at Eskom. There Association (IDA) credits and grants to improve the reliability of electricity services.
“West Africa has huge potential for clean
and green energy generation, which countries
can unlock and pool together to bring lower
cost electricity to communities and help create
jobs,” said Ousmane Diagana, the World
Bank Vice-President for Western and Central
Africa.
The new operation supports a regional
energy reform programme set out in three
pillars. The first aims to increase confidence in
the enforcement of commercial arrangements
by supporting payments and enforcement
mechanisms relating to energy trade.
The second supports the implementation
of least cost investment decisions that
consider regional options and that promote
competition. The third supports transparency,
by addressing creditworthiness of national
power utilities and keeping the market
informed on key investment decisions that
impact demand and supply.
The West Africa Regional Energy Trade
Development Policy Financing Programme is
the first World Bank operation to use the IDA
Regional Window for a DPF programme.
WORLD BANK

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