ZPC: Gwanda Solar Chivayo Ultimatum Sets 24-Month Deadline

• The Zimbabwe Power Company (ZPC) has reinstated a revised US$172 million Gwanda Solar Project deal with Intratek.
• Intratek, led by Wicknell Chivayo, has been given a strict 24-month ultimatum to complete the 300-hectare solar farm.
• This project revival occurs eight years after its initial stall, following a 2018 ZPC cancellation that Chivayo successfully challenged in court.
• Intratek's chairperson confirmed an advance payment agreement and the establishment of a guarantee via technical partner CHiNT Electric for preparatory work.
• Wicknell Chivayo personally committed to completing the project, even offering to use his own funds to ensure its realization.

The Zimbabwe Power Company has now reinstated a revised agreement for the US$172 million Gwanda Solar Project with Intratek, imposing a strict 24-month deadline for completion.

The Zimbabwe Power Company (ZPC) has re-engaged Intratek, a company led by Wicknell Chivayo, on a revised agreement for the long-delayed US$172 million Gwanda Solar Project. This development comes eight years after the initial project stalled without a single solar panel being installed. Under the new terms, Intratek faces a stringent 24-month deadline to complete the ambitious 300-hectare solar farm, a project originally envisioned for the southern regions of Zimbabwe.

Discussions between the government and Intratek have primarily centered on the project's pricing structure. The ZPC's directive explicitly states that the 24-month project duration aligns with the agreed Programme of Works detailed in the Engineering, Procurement, and Construction (EPC) Contract and its accompanying schedules. Intratek is now mandated to mobilize to the site and commence all activities without any further delay, signaling a renewed push to bring the long-stalled energy initiative to fruition.

The Gwanda Solar Project has been a source of significant controversy and a perceived "stain" on the government due to Intratek's initial failure to secure investors. Wicknell Chivayo's company originally won the bid to develop the solar farm in 2015, outcompeting established international powerhouses, including the Chinese-owned ZTE. Despite promising to attract international investment, Intratek did not deliver on this commitment, leading to widespread criticism.

In 2018, the ZPC moved to cancel the deal, citing a lack of satisfactory progress from Intratek. However, this cancellation was subsequently challenged in court by Chivayo, who ultimately prevailed. A parliamentary inspection of the site famously found only a cabin, rather than the extensive solar panels expected to generate power for the national grid, highlighting the project's lack of tangible advancement over the years.

Following the revised agreement, Intratek's chairperson, Wilson Manase, confirmed the new deal and informed the government that an advance payment to facilitate the construction of preparatory facilities had been mutually agreed upon. Manase detailed that Intratek's mobilization efforts would encompass the establishment of temporary site facilities and other essential preparatory activities, all designed to position the project for the full-scale execution of the subsequent EPC works.

Furthermore, Manase affirmed that the required advance payment guarantee has been successfully established and submitted to the ZPC through their technical partner, CHiNT Electric. He also assured that all other necessary arrangements to commence implementation are now firmly in place. Adding a personal dimension to the commitment, Wicknell Chivayo, speaking on "The Denny J Show" podcast, admitted that his company's past failure had haunted him and expressed his readiness to complete the project using his own financial resources, if necessary, simply to put the matter behind him.

The revival of the Gwanda Solar Project, particularly under such strict new terms, carries significant implications for Zimbabwe's energy sector and public procurement processes. The imposition of a firm 24-month deadline underscores a heightened demand for accountability and performance in large-scale government contracts, especially after years of stagnation and legal disputes. This case demonstrates the potential for contract renegotiation and revival, even for projects with a troubled past, but also highlights the critical need for immediate and demonstrable progress.

This development will be closely watched by stakeholders in Zimbabwe's energy landscape, as it represents a crucial test of the government's ability to enforce performance and deliver on vital infrastructure projects. The successful completion of the Gwanda Solar Project could provide a much-needed boost to the national grid and restore confidence in public-private partnerships, while any further delays or failures could exacerbate existing skepticism regarding the efficacy of large-scale energy initiatives.

Lawyers advising energy sector clients or those involved in public procurement in Zimbabwe should note the precedent of contract revival and renegotiation, even after significant delays and legal disputes, and the implications of strict new performance ultimatums. This case highlights the complexities of enforcing and renegotiating large-scale government contracts and the potential for further legal action if new terms are not met.

Source: Original reporting via New Zimbabwe