Intratrek was suing ZPC when it applied for a declaration
confirming that the contract for the Gwanda Solar Project was valid, coupled
with an order for specific performance. In default of that order it wanted
US$25 million in damages. The validity order was granted by the High Court.
High Court judge, Justice Tawanda Chitapi, absolved
Intratrek of any wrong doing or causing delays in the implementation of the
project and declared the contract valid, extant and enforceable. But the
Supreme Court, allowing ZPC’s appeal, said the two parties should have first
argued the matter in court.
“It is clear that this was a case incapable of resolution
without going to trial to determine the merits on the basis of viva voce
evidence,” said Justice Chinembiri Bhunu writing the judgment for the court.
But Intratrek chairman Mr Wilson Manase said after the
Supreme Court judgment that the dispute had been resolved through negotiation
and so the judgment was academic.
He said that the Government still wanted a solar component
in the generation mix for environmental reasons and had authorised
negotiations.
“After Cabinet Approval of the project last year in June
Intratrek and ZPC have since negotiated and finalised a revised amended and
restated contract which is ready for signature immediately. We await ZPC to
obtain board approval so we proceed to sign the contract and subsequently
implement the first phase.”
Mr Manase said Zimbabwe had endured close to two decades of
power shortages. “As part of the revised contract we agreed to withdraw all
pending litigation and focus on achieving 10 MW in 6 months after the contract
and all security for payments agreements have been signed and all approvals
from Ministry of Finance accomplished,” said Mr Manase.
In the court’s ruling, Justice Bhunu also noted that the
country was facing a critical shortage of electricity, a vital necessity for
the socio-economic wellbeing of the citizenry and the nation at large.
He said the two parties who turned protagonist were
entrusted with improving the availability of the scarce resource in Gwanda.
However, the parties had been embroiled in perpetual contractual disputes for
more than five years without meaningful progress towards achieving the intended
objective.
“It is therefore, of utmost importance that their
contractual disputes must be resolved expeditiously for the common good,” said
Justice Bhunu.
ZPC and Intratrek had signed $172 million agreement for the
construction of the Gwanda solar project as part of Government efforts to
address crippling power shortages. ZPC claimed the contract failed to meet
conditions within the agreed period of 24 months.
However, Intratrek filed a lawsuit disputing the claims and
making a counter claim that ZPC, as contractor, had frustrated implementation
of the project, hence breached the contract. Herald
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