No takers for Zim military’s multi-billion project

TINASHE MAKICHI

A multi-billion project in Matabeleland North Province linked to the Zimbabwe military- controlled company, China Africa Sunlight, has been put on hold after the company failed to find an investor with financial wherewithal to get the project off the ground.

The project- Gwayi Coal-Electricity Integration Project- estimated to be worth US$2bn is controlled by the Ministry of Defence’s Old Stone Investments, which controls China Africa Sunlight.

Major general Chris Mupande head of Department of Economic Development in the Ministry of Defence confirmed to Business Times this week that the project has been put on hold after several potential investors who had expressed interest in the project failed to take up the offer.

“The project is on hold at the moment while we wait for some suitors. You know there has been some interest but nothing concrete has materialised yet,” Mupande told Business Times.

For years, the proposed project has failed to take off because the Zimbabwe government has been battling to settle a US$60m China Export and Credit Insurance Corporation (Sinosure) debt, which has resulted in potential investors from China failing to move funds from the Asian country into Zimbabwe.

Sinosure is a state funded insurance group spearheading China’s foreign trade and economic programmes. The unserviced debt has affected various other projects including several other mega-deals signed during former president Robert Mugabe era.

Initially, Old Stone Investments partnered with China-based Shandong Taishan Sunlight in the China Africa Sunlight project.

But the deal was terminated after the Chinese company failed to put funds required on the table.

Another Chinese firm, Yunnan Linkun Investment Group, partnered Old Stone Investments as a stakeholder in China Africa Sunlight following the termination of Shandong Taishan Sunlight deal after it failed to mobilise funding for the project.

Consequently, the continued failure by Chinese investors’ failure to bring funds for the project to the table forced the government to open the project to new investors.

But apparently, there are no takers.

The proposed project entails the construction of cement and fertiliser manufacturing plants.

The project, which the government granted National Project Status, also entails the setting up of coal mines and construction of a 600 megawatt (MW) coal-fired power plant.

This was expected to ease severe power shortages experienced in Zimbabwe due to inadequate local power production.