Zimpapers Logo

The Zimbabwe Power Company (ZPC) is engaging Intratek to push it to resume works at the planned 100 megawatt Gwanda solar project in Matabeleland South province, Parliament heard on Tuesday.

Intratrek Zimbabwe, owned by businessman and socialite Mr Wicknell Chivhayo, was awarded a tender for the engineering, procurement and construction of a 100MW Gwanda Solar Power Station. It was awarded as the lowest compliant bidder to specification out of six bidders at US$173 million.

The company was paid US$5 million for pre-commencement works such as site clearance and feasibility studies but after delays in implementing the project, ZPC terminated the contract and went on to report Mr Chivayo to the police for fraud.

After a lengthy trial, which started at the magistrates courts and ended at the Supreme Court in January last year, Mr Chivayo and Intratrek were acquitted of fraud and the court ruled that the contract was still valid.

The Supreme Court also issued a decree compelling ZPC to perform its contractual obligations.

Presenting oral evidence before the Parliamentary Portfolio Committee on Mines and Energy, ZPC acting managing director, Mr Norbet Matarutse said discussions were underway for works on the solar project to resume.

“The Supreme Court made a judgment that we need to go back to the contract that we signed with Intratek in 2015 which is what we are doing. We seek to make sure that we abide by the ruling of the Supreme Court,” he said.

ZPC legal adviser Mr Tungamirai Chinhengo, told the committee that the US$5 million paid to Intratek was for the commencement of works but legislators were of the view that state funds were wasted on land clearance.

“The parties are currently engaging each other with a view to resume work at the Gwanda solar project,” he said.

He said ZPC and Intratek were also in discussions to alter the contract price.

“Global solar pricing has reduced quite significantly due to technological improvements so the parties are in discussion in terms of the contract price and modus operandi in the interest of time that has lapsed since 2015,” he said. — New Ziana/Chronicle