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Nqobile Bhebhe, [email protected]

THE proposed joint venture for a 50-megawatt solar farm at Ncema Dam in Esigodini, between the Bulawayo City Council and Williams Engineering hangs in the balance as the local authority has recommended against guaranteeing US$148 819.

In January 2022, the council resolved to enter into a partnership with Williams Engineering for the establishment of a 50MW solar farm at Ncema Dam area.

The municipality indicated it had identified 100 hectares, which is considered adequate for the establishment of a 50MW solar project. The land forms part of the council’s 25 percent equity.

Key stakeholders, Environmental Management Agency, Zimbabwe National Water Authority and Umzingwane Rural District Council have also approved the move as the stand identified falls within the jurisdiction of the local authority.

However, in the initial council resolution, the council had raised scepticism saying “Williams Engineering should take responsibility to fund project preparation activities including feasibility studies, design and EIA.

“They are the project promoters and it should be their responsibility to prove that the project is bankable. The current proposal to have Bulawayo City Council foot the bill is exploitative as Williams will eventually use the feasibility studies funded by council to raise funds for project implementation from investors.

“They should show their commitment and confidence by outlaying resources upfront,” council said then.

According to the latest council report table on Wednesday during a monthly full council meeting, Finance Director said that on 8 June, 2018, council was mandated to partner with Williams Engineering to develop and construct a 50MW solar plant at Ncema Dam in Matabeleland South.

The project objectives were to provide alternative power to the water treatment plant and also generate revenue for Council.

“To implement the Council resolution, a consultant had been engaged for purposes of undertaking a full bankable feasibility study that would produce a report to be submitted to the Zimbabwe Development Agency (ZIDA), PPP Committee enroute to cabinet for approval.

“The Consultancy (Renewable Africa Zimbabwe) charges amounting to USD$148 819 had been received by IDBZ.”

He added that council financial advisors, IDBZ was in a position to settle the consultancy fees in advance with the hope of recovering the money from the project proceeds or in future  convert the debt into equity, on condition that Council guaranteed the repayment.

“Based on this background, permission was sought for Council to guarantee IDBZ in writing that an amount of US$148 819 would be honoured should the project fail to generate enough proceeds.”

However, when the issue was debated, the committee raised concern on the capacity of the implementing partner and was therefore against the signing of the letter of guarantee.

“It was resolved to recommend that the recommendation be not acceded to and the Town Clerk be not authorised to sign the letter of guarantee,” reads council recommendation.

On 27 March, 2024 Renewable Africa Zimbabwe sent an invoice to IDBZ indicating a total due payment of US$37 204 75.

It quoted terms of reference as “Consultancy work on the Inyankuni 50MW Solar PV Project at Lot 5 of Lot 79 Essexvale Estate, JV between Williams Engineering, Bulawayo City Council and IDBZ.

“Scope includes Phase 1 Feasibility Study (Desk Level of comprising 25 percent of Main Bankable Feasibility Study.”

The proposed solar project is in line with Government thrust of encouraging the use of alternative energy.

Through the Zimbabwe Energy Regulatory Authority (Zera), the Government has licensed more than 100 independent power producers to generate clean energy such as gas, solar and hydro-electricity.

This is also in keeping with the global trends on the need to curb pollution and global warming through investment in environmental friendly power projects.

However, a few small projects are operational and only producing little at a time the country is experiencing a serious electricity deficit.

The service gap has resulted in continued power cuts, which industry leaders partly blame for frustrating production amid costly imports from regional producers, which drain scarce forex resources from the economy.