Gwanda Solar Project: Chivayo gets another two years to deliver

[Yesha]

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Zimbabwe’s long-delayed Gwanda Solar Project is back on the agenda, with businessman Wicknell Chivayo’s company, Intratrek Zimbabwe, given 24 months to complete the 100MW power plant.

The latest development comes more than a decade after Intratrek was awarded the project in 2015.

According to The Herald, the Zimbabwe Power Company (ZPC) has now issued Intratrek with a formal “Notice to Proceed”, authorising the company to begin full implementation of the project. Government says work should start once an advance mobilisation payment is released.

The project was originally awarded to Intratrek, in partnership with Chinese company CHiNT Electric, at a cost of about US$173 million. The revised project cost has since been reduced to US$132 million, reflecting the fall in global solar construction costs.

A project stuck in legal battles​

The Gwanda solar project has been delayed for years, with the dispute between Intratrek and ZPC becoming a major part of its history.

ZPC terminated the contract in April 2018, arguing that Intratrek had failed to meet conditions required for implementation within the agreed timeframe.

Intratrek, led by Chivayo, challenged the termination in court and argued that ZPC itself had contributed to the delays.

In January 2023, the High Court ruled that the contract remained valid and binding. The court also ordered specific performance, meaning the parties were required to proceed with the project.

ZPC appealed the decision, but in December 2023 the Supreme Court dismissed the appeal and confirmed that the contract between ZPC and Intratrek remained valid.

The Supreme Court ruled that ZPC had to allow Intratrek to build the power station or face a US$22 million damages claim.

Chivayo's legal troubles​

The project also resulted in criminal proceedings against Chivayo and Intratrek over allegations relating to about US$5.6 million in funds connected to the project.

In March 2023, Chivayo and Intratrek were acquitted after the Harare Magistrates Court found that there had been an unreasonable delay in bringing the prosecution.

The legal battles contributed to the project's prolonged delay, while the government has also cited challenges linked to Zimbabwe's debt to China and difficulties around project financing.

11 years later​

The Gwanda Solar Project was awarded in 2015, meaning roughly 11 years have passed without the 100MW plant being completed.

The new agreement gives Intratrek another 24 months to deliver the project.

Government has also said Intratrek will be required to provide regular progress reports to the Office of the President and Cabinet, ZPC and other authorities.

Chivayo has previously pledged to complete the project, including saying he was prepared to personally fund the stalled development if necessary.

If successfully completed, the 100MW Gwanda plant would add much-needed generation capacity to Zimbabwe's electricity system and support the government's push for greater energy security.

For now, the focus is once again on Chivayo and Intratrek to deliver a project that has remained unfinished for more than a decade.

Source: The Herald