The highly anticipated 100MW Gwanda Solar Project will move forward under a revised contract after a joint contract review committee, made up of representatives from the contractor, Intratrek, and the Zimbabwe Power Company (ZPC), addressed key issues such as the contract price and an updated feasibility study report.
The update was provided by Energy and Power Development Minister, July Moyo, in response to questions raised in Parliament.
The project has garnered significant attention over recent years due to delays caused by Intratrek Zimbabwe, owned by businessman Wicknell Chivhayo, who was accused of not meeting the agreed-upon deadlines. In turn, Intratrek claimed that ZPC had not met its own obligations.
In 2020, Cabinet approved a revised implementation plan that aimed to deliver the first 10MW and the remaining 90MW by 2022, following the signing of financial closure agreements and the fulfillment of all outstanding conditions. However, the project was delayed due to several court cases filed by ZPC against the contractor.
“After the Supreme Court ruling in December 2023, which upheld the High Court’s decision confirming the validity and binding nature of the engineering, procurement, and construction (EPC) contract for the Gwanda Solar Project, both ZPC and Intratrek are now required to fulfill their obligations under the original contract,” Minister Moyo said.
Despite this, the project will proceed under a revised contract. Both ZPC and Intratrek representatives, who form the joint contract review committee, have met several times and agreed that the significant decrease in global solar PV costs, due to technological advancements, warrants an adjustment to the contract price.
“Given the lengthy delay in the project’s start and new connections to the nearby 132kV transmission line, along with other network developments, the committee is reviewing an updated feasibility study to fine-tune the project’s implementation framework,” Minister Moyo explained.
He added that the impact of the project on the grid had been studied, and the committee is currently reviewing the findings. “Once these processes are completed, the Gwanda Solar Project will be adjusted to include the updated contract price, revised technical specifications, and provisions addressing environmental and social impacts,” Moyo said.
A key aspect of the project is securing financial closure. “The contractor must secure funding based on the revised contract price. A funding proposal has been submitted to the committee and is currently under review,” Minister Moyo noted.
Zimbabwe requires about 2,200MW per day during peak demand, especially in winter. According to recent data from ZPC, the country is currently generating 1,244MW, with 675MW from Hwange, 485MW from Kariba, and 84MW from independent power producers (IPPs).
For comments, Feedback and Opinions do get in touch with our editor on WhatsApp: +44 7949 297606.