By Shongedzai Mugwagwa
Government has officially cancelled a tender won by an Indian firm, Jaguar Overseas for the multi-million dollar 100MW Munyati re-powering project, the Harare Post can exclusively report.
The tender was withdrawn due to failure by the Indian firm to secure funding three years after the winning the tender.
Information in the possession of the Harare Post reveals that given the importance of the $140 million project, Government is intending to engage the second bidder, China Gezhouba Group Company (CGCC).
Jaguar Overseas and its local partner, Intratrek Zimbabwe fronted by businessman, Wicknell Chivhayo, won another multi-million dollar contract for the re-powering of Harare Power Station, which has been dogged by irregularities relating to the way the tender was awarded.
In a confidential document in possession of this publication, Jaguar Overseas in their tender papers highlighted that India Eximbank was going to give them 80% of the funding but three years down the line, the company hit a brick wall as their State-owned bank denied having ever agreed to release the said 80%.
Sources from the Zimbabwe Power Company (ZPC) hinted that engagement efforts are being done by the Government to continue with the project by engaging CGCC which came second for the multi-million dollar project.
Government intends to fast-track the selection process for the project to begin in the shortest possible time.
“I can confirm that Government has cancelled the Jaguars Overseas contract because they had no money at all. In that respect, we have made communication with CGCC to find out if they are still interested in the project. Government position now is that all these contractors should provide proof of funding,” said the source.
A senior Government official, who chose to remain anonymous due to the sensitivity of the subject, told The Harare Post that "the matter will be tabled before Cabinet for consideration and officialising the engagement of CGCC.”
Minister of Energy and Power Development, Dr Joram Gumbo confirmed that Munyati re-powering project was not committed at the moment but hinted that the project was in limbo and trailing behind time, therefore there is an urgent need for the project to take off.
The dodgy company had won the tender to refurbish the outdated power plant which is currently generating 19MW and at the same time committed to a similar project on the Harare Power Station which they also failed to secure funding.
Zimbabwe faces critical power shortage with generation averaging 900MW against national peak period demand of 2 200MW and therefore pushing the country to import electricity from South Africa’s ESKOM.
President Emmerson Mnangagwa and his new administration have taken a notch-up in refurbishing and constructing power plants with the $5 billion Batoka Gorge on cards. President Mnangagwa promised the nation that Zimbabwe will economically leap-frog to become a middle income economy by 2030.
