Harare, Zimbabwe | Flamboyant businessman Wicknell Chivayo has come out guns blazing to dismiss allegations made by Nyanga South legislator, Supa Mandiwanzira, regarding the stalled Gairezi 30MW Hydro Power Project.
The dispute follows remarks made by Mandiwanzira during a recent ZANU-PF gathering, where the MP suggested that Chivayo’s failure to deliver the project—tendered during the late Robert Mugabe’s era—deprived the Tangwena community of vital employment and tourism opportunities.
Responding via social media on Wednesday, Chivayo clarified that the tender was not a personal award. He highlighted that the project was granted to a high-powered consortium led by Bharat Heavy Equipment Limited (BHEL), a multi-billion-dollar Indian state-owned firm, alongside Angelique International Ltd.
“Intratrek Zimbabwe only participated as a local contractor,” Chivayo explained. “We leveraged the global credibility and technical expertise of international partners to remain competitive and emerge as the lowest compliant bidder.”
The US$113 Million Hurdle
Addressing the elephant in the room—why the plant was never built—Chivayo pointed to financial unfeasibility. With a price tag of US$113 million for just 30MW, the project struggled to attract investors.
According to Chivayo, the financial model failed to meet the rigorous demands of international lenders regarding return on investment (ROI) and plant load factors. He stressed that technical feasibility does not guarantee funding if the cash flow projections are weak.
“I Actually Lost Money”
Contrary to public perception that he profited from the deal, Chivayo claimed he personally incurred significant losses. He detailed the “cumbersome” bidding process, which involved extensive international travel and upfront costs to coordinate with original equipment manufacturers (OEMs).
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Upfront Costs: Contractors invest heavily in travel and logistics before a single cent is disbursed.
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Bank Guarantees: Strict requirements like Performance Guarantees and Factory Acceptance Tests must be met before funding.
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Stalled Returns: Chivayo noted that contractors are equally disappointed when projects fail to launch because they only earn margins through actual construction and commissioning.
Government Priorities Shifted
Chivayo further revealed that no payments were ever received from ZESA for Gairezi. He noted that the government and the power utility strategically pivoted toward high-yield projects that offered immediate solutions to the national power crisis.
“Government ultimately prioritized projects like Hwange Units 7 and 8, which delivered 600MW to the grid,” he said, adding that Gairezi, alongside the Munyati and Harare repowering projects, was consequently sidelined.
ZiMetro News understands that Chivayo remains hopeful the government will revisit the Gairezi project with a more sustainable funding model in the future. He urged the public to disregard “speculative comments” suggesting that any funds were misappropriated for the project.
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