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Dams The politics of power The shouts of Swedish student demonstrators have produced a loud echo in the Zambesi Valley this month. Political and legal, pressures in Stockholm which made the electro-manufacturing giant ASEA walk out of a 14-company consortium may have dealt a serious blow to the £150 million dam on the Zambesi at Cabora Bassa in the Portuguese territory of Mozambique. Any prospect that ASEA could be wooed back seem to have faded away. The consortium, Zamco, was pains* takingly constructed by South Africa's Anglo American Corporation in 1967 to bid for the dam contract,.and seemed to have all the talents needed- ASEA, with its unique mastery of high-voltage direct current systems, ensured that Cabora Bassa's power could be moved to the main potential buyer, South Africa, more cheaply and without the heavy losses of current involved in a/c transmission over long distances. Zamco was awarded the tentative contract more than a year ago in the face of largely British and American rivalry ; its own ranks included, in addition to ASEA, French, Italian and German concerns. Then in Lisbon the Portuguese began to brood. At one point, Dr Caetano implied that he was revoking the deal with Zamco. Months slipped by, with Zamco*s chairman, Mr Ted Brown, commuting between Johannesburg and Europe in efforts to win a formal signature in time for engineering work to . start before the November-April rains put the Zambesi in spate. That is where the left-wing Swedish students came in, The delay allowed the mounting of a campaign against ASEA's involvement in a scheme that would prop up Portuguese colonialism in Africa, supply cheap power to South Africa and possibiv benefit nearby rebel Rhodesia. Swedish opinion on this last point could run high ; a law was passed in Sweden making it an offence to be involved in any concern trading with Rhodesia, At first, after the protests ASEA sat tight, reluctant 10 lose a job in which its share would be around £16 million. It also told the politicians that it might have to fire 500 men if the work did not come through. But when at last Mr Brown of Zamco rose triumphant from the negotiations on September 3rd with a firm contract, that very afternoon the Swedish company said it was no longer part of Zamco. A message from the board said ASEA had not renewed its tender when this had expired on July 31st—although it is unclear whether Zamco or the Portuguese were aware of that. Zamco is putting a brave face on it all. The French and west German, participants, Alsthom and Siemens, say they will fill the breach. But for the vital mercury valves for the HVDC system, Zamco may have to turn to the English Electric part of British GEC, with which ASEA has links. As it happens, English Electric was in the British consortium beaten to the Lisbon post. Amid all the anxiety, the South African power authority, Escom, may grow bearish and look to alternative sources not so far from home (the Cabora Bassa transmission lines would be more than 850 vulnerable miles long through Mozambique). Industrial growth in South Africa makes new power essential by the mid- 1970s—and Cabora Bassa would provide more than 2,000 MW after meeting the needs of Mozambique. But apart from the deadline for work on the site next month, Zamco must also face the risk that other members of the consortium could trip over the sanctions hurdles. Farther up the Zambesi, another dam scheme looks healthier. Very shortly, signatures should complete several months of negotiating for the £25 million North Bank station at Kariba, which will give an extra souice of power for Zambia's copper mines, augment the supplies from the Kafue-project now being constructed near Lusaka, and avoid the need for the costly Kafue Stage Two. Zambia will have complete control over the new Kariba station and need no longer rely upon the goodwill of; Mr Ian Smith on the south bank. As it happens, Britain will be using Rhodesian funds frozen in Britain since UDI for its part in financing the project. . to 5 o o E w H 09 m i w w «o
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Title | CENPA-037~25 |
Filename | CENPA-037~25.tiff |
Full text | Dams The politics of power The shouts of Swedish student demonstrators have produced a loud echo in the Zambesi Valley this month. Political and legal, pressures in Stockholm which made the electro-manufacturing giant ASEA walk out of a 14-company consortium may have dealt a serious blow to the £150 million dam on the Zambesi at Cabora Bassa in the Portuguese territory of Mozambique. Any prospect that ASEA could be wooed back seem to have faded away. The consortium, Zamco, was pains* takingly constructed by South Africa's Anglo American Corporation in 1967 to bid for the dam contract,.and seemed to have all the talents needed- ASEA, with its unique mastery of high-voltage direct current systems, ensured that Cabora Bassa's power could be moved to the main potential buyer, South Africa, more cheaply and without the heavy losses of current involved in a/c transmission over long distances. Zamco was awarded the tentative contract more than a year ago in the face of largely British and American rivalry ; its own ranks included, in addition to ASEA, French, Italian and German concerns. Then in Lisbon the Portuguese began to brood. At one point, Dr Caetano implied that he was revoking the deal with Zamco. Months slipped by, with Zamco*s chairman, Mr Ted Brown, commuting between Johannesburg and Europe in efforts to win a formal signature in time for engineering work to . start before the November-April rains put the Zambesi in spate. That is where the left-wing Swedish students came in, The delay allowed the mounting of a campaign against ASEA's involvement in a scheme that would prop up Portuguese colonialism in Africa, supply cheap power to South Africa and possibiv benefit nearby rebel Rhodesia. Swedish opinion on this last point could run high ; a law was passed in Sweden making it an offence to be involved in any concern trading with Rhodesia, At first, after the protests ASEA sat tight, reluctant 10 lose a job in which its share would be around £16 million. It also told the politicians that it might have to fire 500 men if the work did not come through. But when at last Mr Brown of Zamco rose triumphant from the negotiations on September 3rd with a firm contract, that very afternoon the Swedish company said it was no longer part of Zamco. A message from the board said ASEA had not renewed its tender when this had expired on July 31st—although it is unclear whether Zamco or the Portuguese were aware of that. Zamco is putting a brave face on it all. The French and west German, participants, Alsthom and Siemens, say they will fill the breach. But for the vital mercury valves for the HVDC system, Zamco may have to turn to the English Electric part of British GEC, with which ASEA has links. As it happens, English Electric was in the British consortium beaten to the Lisbon post. Amid all the anxiety, the South African power authority, Escom, may grow bearish and look to alternative sources not so far from home (the Cabora Bassa transmission lines would be more than 850 vulnerable miles long through Mozambique). Industrial growth in South Africa makes new power essential by the mid- 1970s—and Cabora Bassa would provide more than 2,000 MW after meeting the needs of Mozambique. But apart from the deadline for work on the site next month, Zamco must also face the risk that other members of the consortium could trip over the sanctions hurdles. Farther up the Zambesi, another dam scheme looks healthier. Very shortly, signatures should complete several months of negotiating for the £25 million North Bank station at Kariba, which will give an extra souice of power for Zambia's copper mines, augment the supplies from the Kafue-project now being constructed near Lusaka, and avoid the need for the costly Kafue Stage Two. Zambia will have complete control over the new Kariba station and need no longer rely upon the goodwill of; Mr Ian Smith on the south bank. As it happens, Britain will be using Rhodesian funds frozen in Britain since UDI for its part in financing the project. . to 5 o o E w H 09 m i w w «o |
Archival file | Volume5/CENPA-037~25.tiff |