IMPLEMENTATION of Chinese projects totalling US$1,4
billion, which had reached a critical phase, has been hampered by the Covid-19
pandemic, which has rattled the global economy and killed about 75 000 people
since it was detected in China in January.
The affected projects are being bankrolled through loan
facilities secured from China Eximbank and other financial institutions.
Zimbabwe is under a 21-day lockdown that began last at
midnight last Sunday. The country has recorded 10 coronavirus cases and one
death.
The projects, namely the US$1,1 billion Hwange Thermal
Power Station upgrading, US$153 million Robert Mugabe International Airport
expansion and the US$100 million New Parliament Building in Mt Hampden, Harare,
and the US$70 million NetOne expansion have been slowed by Covid-19, which has
plunged the global economy into a tailspin.
Zimbabwe, already battling to resuscitate its collapsing
economy, sees some of the Chinese projects — particularly the construction of
units 7 and 8 at Hwange, which will add 600 megawatts to the national grid as
well the expansion of the Robert Mugabe International Airport — as key in
turning around the country’s economic fortunes.
However, officials have revealed the implementation of the
projects has been disrupted by the pandemic, with huge construction shipments
delayed as the world races to find a solution to contain Covid-19.
Chinese Enterprises in Zimbabwe chairperson Le Hai told the
Zimbabwe Independent last week that the projects, as well as other investments
by the global economic powerhouse in Zimbabwe had been severely hit by the
pandemic, with completion targets hanging in the balance.
“The major projects were affected because the key
technicians and engineers couldn’t come to Zimbabwe and the same applies to
construction equipment and materials,” Le said.
“But they are trying to employ more local staff and source
material locally. It may be delayed a bit, but they are trying by all means to
complete on time by working overtime.”
Hai said government was working with the Asian authorities
to ensure that the projects would not stop completely, in spite of the business
risks posed by the pandemic.
He said: “Coronavirus did have a huge effect on the
business of Chinese companies in Zimbabwe due to travel limit and shipping
disruption.
“But we have been trying by all means to reduce the loss or
delay in the key projects. At the same time, we follow the instructions of the
Zimbabwean government and Chinese Embassy to ensure these projects are not
completely stopped but working with reduced staff with protective measures in
place.”
Under the financing arrangement of the Hwange Power Station
refurbishment deal, 60% of the cost would be financed through material
shipments from the Asian economic giant, which is now slowly recovering from
the effects of the pandemic.
The project, expected to generate 600MW, is being jointly
rolled out by China’s state-owned Sino Hydro and the Zimbabwe Power Company
(ZPC). The project has created 3 000 jobs.
Tang Zhaolai, the Sino Hydro site manager, told the
Independent that a sizeable shipment of construction material had been held up
in South Africa and China, as the deadly virus spreads rapidly across the
world.
“The delays in delivery has been due to the coronavirus.
Two shipments are at sea as we speak. The first one is due to get in South
Africa this month, but we are not sure if we will get in time due to the
coronavirus,” Tang said.
Last week, Sino Hydro wrote to its staff highlighting that
implementation of the project would progress despite the pandemic. Some of the
workers are staying on site during the lockdown period.
“To ensure this project can generate electricity for the
country as soon as possible, site works should not be stopped thoroughly.
Employees are encouraged to go on working at site,” the statement reads.
Full-scale implementation, the statement said, would resume
after the 21-day lockdown.Construction of the imposing six-storey New
Parliament building perched on a hill in Mt Hampden has also been hit by the
pandemic. It is the biggest China Aid-funded project in Africa and is being
implemented by Shanghai Construction (SCG) Group.
Cai Li Bo, the SCG project manager, said the company had
not received some construction material and staff since early February, slowing
down the project.
“At the moment, we have 110 Chinese workers quarantined on
our compound and project site in line with the instruction from the government.
The Chinese engineers are safe and workers are safe and quarantined. We have
asked all local workers to be at home during the 21 days of lockdown,” Cai
said.
“Because the of virus, we are a little bit behind schedule.
Fortunately, we were ahead of schedule before the outbreak so we remain
confident that when everything has settled down, we will be able to finish the
project in the 32-month time frame agreed.
“We are also expecting to start receiving material this
month, because business has resumed in China. We don’t think there will be
problems on the shipment route from Beira to Zimbabwe, so depending on the
situation here, we might be able to do more work.”
This is not the first time the three projects have suffered
a knock. Last year, Chinese financial institutions threatened to cut funding,
after local fiscal and monetary authorities raided US$10 million from an escrow
account held under the US$153 million Robert Mugabe International Airport
project, resulting in crisis meetings involving Ministry of Finance officials
and Chinese Embassy officials.
The project is being implemented by Chinese state
enterprise Jiangsu and is envisaged to transform the airport into a modern
facility by improving its handling capacity.
The three projects were lined up for Zimbabwe by China’s
President Xi Jinping when President Emmerson Mnangagwa visited the Asian
country in 2018. Zimbabwe Independent
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