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Bongani Ndlovu, Online Writer

The Zimbabwe Power Company will abide by the Supreme Court’s dismissal of its appeal regarding the contract with Intratrek Zimbabwe, for the construction of the 100 megawatt Gwanda Solar project.

In a comprehensive 42 page Judgement handed down Friday morning by Justice Musakwa the Supreme Court noted that ZPC deliberately frustrated the contract at a time the nation is suffering from continuous power cuts and power deficit.

In January this year, the High Court in Harare ruled in favour of Intratrek Zimbabwe in a legal case in which the company sought an order declaring its contract with ZPC, for the construction of the 100 megawatt Gwanda Solar project, valid and binding between the parties.

Consequent to the declaration of the validity of the Engineering, Procurement and Construction Contract, Intratrek Zimbabwe also sought an order for specific performance.

In a statement, ZPC said contrary to social media reports the judgement does not mean that it will have to pay Intratrek US$22 million.

“In the public interest however, it is important to give the correct narrative on the legal implications of the Supreme Court judgement, considering that certain online articles have published an incorrect and misleading position;

The Supreme Court judgement has the effect of upholding the High Court judgement granted by Honourable Justice Msithu in January 2023, in which the Gwanda EPC Contract was found to be still valid and binding on both ZPC and Intratrek Zimbabwe (Private) Limited – (“Intratrek”).

For the avoidance of doubt, the High Court judgement did not award Intratrek damages in the sum of US$22 Million as alleged by some online publications or any other sum in damages for that matter. To the contrary, the High Court only granted an order for specific performance, which in simple terms requires parties to perform their respective obligations under the EPC Contract.”

Below is the full statement by ZPC.

STATEMENT ON THE SUPREME COURT JUDGMENT – ZPC v INTRATREK ZIMBABWE CASE.

The Supreme Court of Zimbabwe today delivered a judgement on the appeal by the Zimbabwe Power Company (“ZPC”) against a High Court decision which had found that the Contract for the development of the 100MW Gwanda Solar Project was still valid. ZPC’s appeal was dismissed after a hearing before Honourable Justices Chiweshe, Makoni and Musakwa. The full written judgement containing reasons for the Court’s determination are yet to be furnished.

In the public interest however, it is important to give the correct narrative on the legal implications of the Supreme Court judgement, considering that certain online articles have published an incorrect and misleading position;

The Supreme Court judgement has the effect of upholding the High Court judgement granted by Honourable Justice Msithu in January 2023, in which the Gwanda EPC Contract was found to be still valid and binding on both ZPC and Intratrek Zimbabwe (Private) Limited – (“Intratrek”).

For the avoidance of doubt, the High Court judgement did not award Intratrek damages in the sum of US$22 Million as alleged by some online publications or any other sum in damages for that matter. To the contrary, the High Court only granted an order for specific performance, which in simple terms requires parties to perform their respective obligations under the EPC Contract.

Considering that the Supreme Court is the final Court of Appeal in this instance, the legal implication of today’s judgment is that ZPC and Intratrek will revert to the position that they were before the 23rd April 2018 when the EPC Contract was cancelled.

It is equally important to highlight that the judgment does not create any further liability on ZPC outside that which is contained in the EPC Contract signed with Intratrek on 23 October 2015. Consequently. Intratrek is therefore still required to satisfy all conditions precedent to the commencement of the project, which it had failed to achieve as at 23 April 2018.

In abiding with the Supreme Court judgement, Intratrek is now required under the reinstated EPC Contract to facilitate the financing of the US$172 million contract within the contractual time frame as the requirement of financial closure is key for the project to commence. Should such financing be raised, the borrowing instruments must be approved by Government prior to implementation of the Project.

Zimbabwe Power Company remains committed to a sustainable supply of power to the country in support of the National Development Strategy and Vision 2030 objective of ensuring National Access and Total Electrification.

The general public and all stakeholders should therefore be properly guided by the correct facts of the case as elaborated above