Moses Matenga
HARARE – The Zimbabwe Power Company (ZPC) has controversially renewed the $128 million Gairezi hydro power project contract that was being undertaken by Indian investors – Angelique International, Bharat Heavy Electricals Limited (AIL-BHEL), – which has been delayed due to funding constraints.
This is despite the fact that one of the investment partners, Angelique International, was accused of impropriety in its home country of India and was at one time investigated on suspicions of paying kick-backs to corrupt government officials in India to obtain soft loans for financing projects in Africa.
The Gairezi has not materialised since being mooted in 2006 due to funding constraints. The project was expected to present an option for cheap form of electricity in Zimbabwe with Gairezi’s 30MW helping in diluting the cost of power.
According to ZPC officials, the project was also expected to help in the development of the area.
Business Times can reveal that AIL-BHEL consortium had its contract renewed two months ago even though it has failed to implement the project in the last three years. The company is frantically trying to mobilize resources from Afreximbank.
Documents seen by this paper show that the Indian company, is trying to distance itself from Intratek.
“Based on the draft of the letter received from ZPC, AIL-BHEL Consortium also submitted a letter on July 17, 2018 addressing any concerns that ZPC may have regarding involvement of Intratek Zimbabwe Private Limited. As confirmed in today’s meeting for due acceptance of the same, now ZPC and AIL-BHEL Consortium embark upon a new phase of the project for its successful implementation,” a letter seen by Business Times, to ZPC reads in part.
“With your continued support and the combined efforts of our teams, we are confident of taking the project to the Credit Committee of the international lenders within the shortest time possible and achieve start of construction of Gairezi HEP at the earliest.”
