The central government has directed Harare City Council (HCC) to reverse its decision to terminate the US$344 million Pomona Waste to Energy Project.
HCC rejected the deal which it said was:
1). Superimposed by the Central Government through the Ministry of Local Government and Public Works.
2). Has a negative impact on the council and ratepayers in particular.
According to the Harare-Geogenix BV agreement, Harare should pay US$40 per tonne of garbage for the estimated 550 tonnes per day delivery or a damage fee of US$3.5 million.
Harare does not have the capacity to deliver 550 tonnes of garbage per day and is expected to fail.
Documents seen by ZBC News indicate that a council meeting held on August 3 resolved to among other things exercise the termination clause in its contract with Geo Pomona Waste Management (Pvt) Limited and mandated the Acting Chamber Secretary to proceed with the necessary action.
However, in a letter dated 27 August 2022, the Ministry of Local Government and Public Works directed the council in terms of Section 314 of the Urban Councils Act (Chapter 29:15) to revisit its position, considering that the project was granted the national project status.
Local Government and Public Works Minister, July Moyo stated that the council’s decision is not in the interests of Harare residents, and as such, the government was not going to accept such an action.
The Minister says the local government authority’s decision will erode investor confidence.
The Pomona Waste to Energy Project was approved in May this year, with a German investor, Geogenix BV (fronted by Dylish Nguwaya) investing 304 million Euros, with up to 22MW of electricity expected to be generated by the project.