The Zimbabwe Power Company (ZPC) and Wicknell Chivayo’s Intratek Zimbabwe are poised to restart the 100MW Gwanda Solar Project.
The project faced setbacks due to alleged non-performance by Chivayo’s company, but recent developments have put it back on track.
ZPC’s acting managing director, Norbet Matarutse, informed the parliamentary portfolio committee on mines and energy that discussions are underway to revive the stalled Gwanda Solar Project. He said (via ZimLive):
The Supreme court made a judgement 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.
The Supreme Court made a judgement 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.
In 2015, Intratek Zimbabwe won a tender worth US$200 million. ZPC paid Intratek Zimbabwe US$5 million for initial tasks like site clearance and feasibility studies.
Due to delays, ZPC cancelled the contract and reported Intratek Zimbabwe and Chivayo to the police for fraud.
Later, the courts acquitted Chivayo and Intratek Zimbabwe of fraud, affirming the contract’s validity. Additionally, the court ordered ZPC to fulfil its contractual duties.
Tungamirai Chinhengo, a lawyer for ZPC told the same committee that the US$5 million paid to Intratek was for the commencement works. He added:
The parties are currently engaging each other intending to resume works at the Gwanda Solar Project.
However, I want to clarify a position which has been misinterpreted about the US$22 million damages.
The issue of damages has never been ordered by any court in respect of this. The High Court and Supreme Court never ordered anything in respect of damages to Intratek.
Chinhengo mentioned that ZPC and Intratek are currently discussing a review of the contract price. He said given the substantial reduction in global solar pricing due to technological advancements, the parties are exploring adjustments to the contract terms, considering the time that has passed since 2015.
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