News

Shocking collapse of ZPC’s legal case against controversial contractor

The collapse of the Zimbabwe Power Company (ZPC)’s legal battle with businessman Wicknell Chivayo, which once promised to uncover irregularities in the Gwanda Solar Project, has left serious concerns about accountability, governance, and the future of Zimbabwe’s energy sector.

This case, which had the potential to shine a light on procurement mismanagement and questionable contractor selection, now stands as a missed opportunity for transparency in a project that remains stalled.

The Gwanda Solar Project, meant to deliver 100 megawatts of solar power to Zimbabwe’s national grid, has been fraught with controversy since its inception.

At the heart of the legal dispute was a US$172 million contract awarded to Chivayo’s company, Intratrek Zimbabwe Pvt Ltd, in 2015. ZPC accused Chivayo of failing to deliver on the project, even after being advanced US$5.6 million. 

This resulted in a lawsuit to recover the funds and hold the contractor accountable. However, the case unraveled, raising more questions than answers.

The collapse of the ZPC’s court case against Intratrek Zimbabwe was a result of various factors, including ZPC’s inability to meet certain contractual obligations.

Intratrek had been awarded the contract for the Gwanda Solar Project in 2015, but ZPC terminated it in 2018, citing lack of performance. However, the court ruled that ZPC’s termination was unlawful, as delays in the project were largely due to funding challenges and unmet conditions precedent, some of which were beyond Intratrek’s control.

As a result, the Supreme Court upheld the contract’s validity, citing procedural missteps by ZPC.

Lack of due diligence and accountability

One of the key issues with ZPC’s legal case was the lack of strong due diligence when selecting Intratrek as the contractor. Documents and parliamentary reports revealed that Intratrek had no prior experience in handling a project of such magnitude.

Despite this, they were awarded the contract, which raised red flags about how ZPC’s procurement processes were handled. When the project stalled, ZPC cited funding hurdles and logistical challenges, but the core of the problem lay in the improper contractor vetting, which became central to the court case.

ZPC’s attempt to pursue legal action against Chivayo was undermined by these initial oversights. The case faltered as it became clear that Intratrek had not been given clear milestones or strict performance measures to adhere to, making it difficult for ZPC to argue convincingly that Chivayo had breached the contract. Instead of securing a legal victory, ZPC found itself in negotiations with Intratrek, trying to revive the project under new terms.

Project stalls amid escalating concerns

Despite renewed attempts to restart the project, the solar plant remains in limbo. A recent parliamentary visit to the site in Gwanda exposed the glaring lack of progress, further fueling public outrage. Lawmakers who inspected the site expressed concerns that not even the most basic infrastructure, such as civil works, had been completed.

This paints a picture of a project mired in delays, despite ZPC’s claims that they were working on overcoming funding and logistical challenges.

Intratrek and ZPC are now in negotiations to revive the project, but the damage to public confidence is palpable. The lack of progress over nearly a decade has become emblematic of broader issues of mismanagement and inefficiency in Zimbabwe’s public energy sector.

Parliamentary reports have called out the opaque nature of the procurement process and the inadequate oversight that allowed this situation to unfold.

The way forward: structural reform needed

The court case’s collapse and the project’s continued stall highlight the need for structural reforms in Zimbabwe’s energy sector. Transparency in the selection of contractors, the enforcement of clear contractual obligations, and strong accountability mechanisms are crucial to prevent future controversies.

The Gwanda Solar Project, once seen as a potential game-changer for Zimbabwe’s energy needs, now serves as a cautionary tale of how poor governance and a lack of oversight can derail national development goals.

For the project to be revived successfully, ZPC must prioritise transparency and accountability in its dealings with contractors. Negotiations with Intratrek must be made public, and strict performance measures should be established to ensure the project finally moves forward.

Only through these reforms can Zimbabwe hope to meet its energy targets and restore public trust in large-scale infrastructure projects.

In conclusion, the failure of ZPC’s court case against Chivayo illustrates deeper systemic issues in Zimbabwe’s public procurement and energy sectors. Without reforms, the Gwanda Solar Project will remain a symbol of missed opportunities and unfulfilled promises.

Lulu Brenda Harris

Lulu Brenda Harris is a senior news reporter at CITE. Harris writes on politics, migration, health, education, environment, conservation and sustainable development. Her work has helped keep the public informed, promoting accountability and transparency in Zimbabwe.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button