The total value of major contracts awarded under the National Matabeleland Zambezi Water Project (NMZWP) has climbed to more than half of a billion US dollars, exposing a significant funding gap between the cost of completing Zimbabwe’s flagship water project and the annual allocations made by the government.
Once completed, the NMZWP is expected to provide a lasting solution to Bulawayo’s decades-long water shortages while supporting irrigation, industrial development and water security across Matabeleland.
However, a National Matabeleland Zambezi Water Project Progress Report dated 10 July 2026, seen by CITE, reveals the project’s four principal contract packages are worth US$554 443 984.28.
This underscores the scale of investment still required to deliver the Gwayi-Shangani Dam and its associated bulk water infrastructure.
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The US$554 443 984.28 is broken down as follows:
Pipeline: US$175 135 350.60
Pump stations: US$167 726 770.83
Water treatment plant: US$81 252 283.09
Pipe supply: US$130 329 579.76
These amounts show that completing the NMZWP will require sustained multi-year financing running into hundreds of millions of US dollars, far beyond what can be covered through the government’s annual budget appropriations.
In the 2025 National Budget, the Treasury allocated ZiG1 billion to the project, comprising ZiG700 million for construction of Gwayi-Shangani Dam and ZiG282 million for the Bulawayo pipeline.
Based on the official RBZ interbank exchange rate applicable at the beginning of 2025, ZiG1 billion was worth approximately US$38.7 million.
In the 2026 National Budget, the government reaffirmed Gwayi-Shangani as a national priority under a broader ZiG1.1 billion allocation for water and sanitation programmes, which also included Kunzvi Dam and the National Borehole Drilling Programme.
However, only ZiG273 million was specifically earmarked for Gwayi-Shangani.
ZiG273 million was about US$10.7 million based on the official RBZ interbank exchange rate at the time.
The 2026 Zimbabwe Infrastructure Investment Programme states that US$25.3 million was availed for construction of Gwayi-Shangani during 2025.
“With regards to Gwayi-Shangani Dam, which is now at 72.4 percent, US$25.3 million was availed during the year 2025. Completion of the Gwayi-Shangani Dam is projected for 2026, supported by a funding allocation of ZiG273 million,” reports stated.
Government funding has also been supplemented through Treasury disbursements, after President Emmerson Mnangagwa directed Treasury to release US$5 million every month to accelerate progress on the strategic project.
However, the latest project report indicates that current funding levels remain insufficient for the broader scheme.
It notes the current arrangement of approximately US$4 million per month is only “enough to cater for the dam wall alone.”
To accommodate additional works, including the power station and low-lift pumping stations (PS0 and PS1), the report recommends increasing funding to US$8 million per month.
While the dam wall itself is nearing completion, progress on the wider water transfer system has been hampered by funding constraints.
Meanwhile, the report shows overall construction of the main dam has reached 80 percent, with significant advances recorded over the past year.
Since July 2025, the height of the dam wall has increased from 39 metres to 55 metres, while more than 194 624 cubic metres of concrete have been placed.
Civil works on the mini-hydropower plant are 72 percent complete, fabrication and installation of the two-metre diameter steel penstock for the outlet works have been completed, while excavation works at the low-lift pump station resumed in March this year after earlier delays.
The second phase of the project, a 252-kilometre pipeline that will transport raw water from Gwayi-Shangani to Bulawayo, continues to lag behind.
The pipeline, designed to deliver 220 megalitres of water per day to Bulawayo, includes six booster pump stations and a low-lift pumping station located near the dam wall.
Construction was awarded to 12 contractors in March 2022, with each contractor allocated approximately 21 kilometres of pipeline.
However, work stalled in that same 2022 because of “inconsistent funding.”
The report says pipeline construction remains at just 16 percent completion, while overall progress on the booster pump stations has reached only 18 percent.
Although the break-pressure tank is almost complete at 98 percent, the pump house has reached 60 percent, while the auxiliary powerhouse remains only 10 percent complete, with foundation works still underway.
Electrification of the pump stations also faces delays, although ZESA has signed a Transmission Connection Agreement, the release of the Power Supply Design is awaiting payment of outstanding administrative invoices.
Beyond financing, the report identifies deteriorating infrastructure as another obstacle.
It says the poor condition of the Bulawayo-Victoria Falls Highway is causing “frequent breakdowns of heavy delivery vehicles transporting construction materials, resulting in operational delays.”
“Resettlement of communities” affected by the project also remains a major undertaking.
A due diligence assessment identified 27 villages, comprising 734 households, together with one business centre and eight institutional facilities that require relocation before the dam becomes fully operational.
While direct compensation was initially estimated at US$2 043 665, the government has opted to construct modern replacement housing instead.
The report estimates the cost of the resettlement programme at US$28 591 046 71.
It stresses that community relocation must proceed alongside construction.
“Resettlement must be carried out concurrently with project implementation, as affected communities must be re-organised before the dam becomes fully functional,” the report states.
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