Message Ven 5 Mar 2010 22:31

CEC anticipates increased sales By NKOLE CHITALA

CEC anticipates increased sales
By NKOLE CHITALA

THE Copperbelt Energy Corporation (CEC) anticipates increased power sales to the main mining companies on the Copperbelt due to new investments by mining customers.

The investments are expected from Luanshya’s Mulyashi Mine, Konkola areas and Northern Province.

CEC executive chairman Hanson Sindowe said apart from the mining sector, the company had seen increased demand in all sectors of the economy.

Mr Sindowe said CEC is willing to invest in generation projects particularly in the Northern, Luapula and North Western Provinces.

He said this at a media briefing in Lusaka yesterday after the company announced its 2009 financial results.

Mr Sindowe also said CEC is expected to complete construction of the second inter-connector between Zambia and the Democratic Republic of Congo (DRC) by the second quarter of 2011.

This is after an infrastructure development agreement was signed in October 2009 through which CEC and the Congolese utility SNEL agreed to construct a new dual circuit 220 kilovolt transmission line.

The line between the DRC and Zambia will facilitate the transfer of 550 megawatts of power from that country to Zambia.

At the same function, CEC managing director for corporate development Michael Tarney said CEC’s profit before interest and tax increased by 11 percent to US$19.1 million.

Mr Tarney attributed this to a reduction in operating expenses arising from the cost control measures and a greater contribution to income from sources other than the sale of power to the mines.

However, revenue decreased by 13 percent to US$154.2 million for the year ended December 31, 2009, compared to US$177.5 million in 2008.

He attributed the decrease to the reduced load to some customers whose operations were placed under care and maintenance during 2009.

Mr Tarney said that CEC’s future growth strategy is based on seeking concessions to develop generation and transmission projects that will have a positive impact in the region.

He said the migration towards cost-reflective tariffs in the region is expected to ensure that the investments provide sufficient attractive investment returns.