PRESIDENT Emmerson Mnangagwa’s administration — in many
ways carrying over from where toppled former president Robert Mugabe’s regime
left — has given the green light for Wicknell Chivayo to access a whopping
US$140 million to complete implementation of the stalled Gwanda Solar Power
Project, the Zimbabwe Independent has established.
This comes after Chivayo, a dodgy businessman, on behalf of
his company Intratrek, wrote to Mnangagwa seeking his intervention to compel
the Zimbabwe Power Company (ZPC) to facilitate the release of funds. Chivayo
claimed ZPC had previously turned a deaf ear to his repeated pleas.
In a letter to Mnangagwa, copied to Finance minister
Patrick Chinamasa and Energy minister Simon Khaya Moyo, dated June 25 2018,
Chivayo starts by singing the praises of the Zimbabwean leader before delving
into the subject matter.
“Under the conditions created by your dynamic
administration, industry and business can only but thrive as well as take
Zimbabwe to its rightful position as the Jewel of Africa. Your Excellency, we
are privileged to have witnessed you embark on this irreversible journey and we
wish to be your companions on this epic adventure,” reads the letter.
“Your excellency, the correct position, to allay fears and
rising speculation on Intratrek/CHiNT’s capacity to implement the project,
CHiNT advised ZPC on 20 April 2018 that China Exim Bank is ready and willing to
issue an internationally backed advance payment bank guarantee to cover an
aggregate of US$51 854 579,28 (30% of the contract value) and requested for
relevant banking details in order to process the bank guarantee. This overture
has been met with a deafening silence from ZPC as have many progressive
advances that we have made towards resolving this.
“It may be of particular importance to note that the
contract value largely consists of the imports from the Chinese technical
partner. Intratrek is only entitled to a small commission out of the contract
value in keeping with the fair profit envisaged in ZPC’s request for proposals
during the bidding of the solar tender.”
Chivayo also accused ZPC of frustrating alternative means
of funding the project when China had blocked funds for all projects in
Zimbabwe because of a US$60 million debt owed to the China Export and Credit
Insurance Corporation (Sinosure), a state-funded entity which provides export
credit. Sinosure can only disburse funds to companies with the clearance of the
host country.
The debt was, however, cancelled during Mnangagwa’s state
visit to the Asian nation in April this year, opening the way to new funding.
Chivayo’s letter adds: “Intratrek has frequently engaged
ZPC with a view to resolve the Sinosure matter. Intratrek proposed a funding
alternative to ZPC through raising local infrastructure bonds by CBZ to fund
the project. CBZ expressed willingness to float the bonds to insurance firms
and pension funds to raise the required funding of the project. This proposal
was recommended by the Minister of Finance and Economic Development on 05 April
2017. Further, the minister specifically directed ZPC to implement this funding
proposal immediately. Notwithstanding Intratrek’s proposal and the minister’s
strong recommendation, ZPC contemptuously refused to implement the proposed
option.”
Chivayo also accused ZPC of stalling Intratrek’s strategy
to finalise the project, which included a downward review of the contract price
by 20%.
“This has further delayed the satisfaction of the
conditions precedent on the financial closure. Since April 2017, the ball has
remained in the ZPC court to either wait for the clearance of the Sinosure
premiums debt or embrace incentives offered by Intratrek/CHiNT,” he says.
ZPC had rejected Intratrek’s proposal to implement the
project, spanning over 85 hectares of land in the perennially sunbaked
district, in four phases of 25 hectares, he said.
“Had the funding been readily available through ZPC,
Intratrek/CHiNT would only require 6-8 months to implement the contract and
feed clean energy into the national grid.
Intratrek/CHiNT’s grievances have since been escalated to
the minister of Energy and Power Development and ZPC was called upon to respond
to the issues raised. ZPC has, however, remained defiant, neglecting to make
any representations on the reasons why it has taken them long to consider these
alternatives. Our further escalation to your office is in dire need and last
resort for a voice of authority to bring ZPC to account for the delays which
have negated the spirit behind the solar project,” the letter says.
“The writer will also be most indulged if your office
favours us with an opportunity to hold a meeting with you in order to fully
deliberate on any matter raised herein whose clarity may remain cast in
ambiguity.”
Chivayo this week confirmed sending the letter, but would
not reveal details.
“Gone are the days of discussing business in the media. It
is unprofessional and the best person to comment is the source of that story,”
he said.
Asked for a comment, Khaya Moyo said he was not aware of
the developments as he has been away busy on the campaign trail.
“I am not aware of what has specifically transpired in the
past three weeks because I have been away campaigning in my constituency and I
just returned today (Wednesday). As you know, we are in the middle of
campaigns. I have been campaigning heavily, so, frankly speaking, I haven’t
been able to look into my tray to see what’s there. I am also running the
information ministry, so there is quite a lot on my table,” he said.
ZPC acting managing director Patrick Chivaura said they
were currently finalising issues with Intratrek, although he could not shed
more light on the issue.
“What I can say at the moment is that we are finalising
some issues with Intratrek before work can resume. Unfortunately, I am not at
liberty to disclose the nature of those issues because talks are still in
progress and they largely involve the parent ministry,” he said.
Ministry of Energy permanent secretary Patson Mbiriri said:
“Sorry, I am about to take off in a plane; I cannot talk to you right now.”
Chief Secretary to the President and Cabinet Misheck
Sibanda also said he could not comment as he was attending a funeral in the
rural areas.
Efforts to get comment from presidential spokesperson
George Charamba were fruitless.
Chinamasa could not be reached for comment. Zesa
spokesperson Fullard Gwasira demanded written questions.
However, senior government officials told the Independent
Mnangagwa has given permission for Chivayo to access the money.
Construction of the solar power plant was initially quoted
at US$172 million, but the price was later revised down to US$132 million due
to the global reduction in the cost of constructing solar energy plants. Under
the deal, Intratrek would be paid US$52 million in the immediate term by CHiNT,
as an advance guarantee payment for the 100-megawatt plant.
A profligate spender, Chivayo had initially controversially
accessed a US$5 million payment upfront, which he reportedly squandered on his
luxurious lifestyle. Zimbabwe Independent
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