Harare to privatise water

Harare City Council (HCC) is in negotiations with a Singaporean company to privatise the capital's water.

The proposed $2,9 billion deal with Neo-Paragon, if it comes to fruition, would see the local authority owning 30% shares in the project, while the Singaporean firm would get a 70% controlling stake for a staggering 30 years.

Deputy mayor, Thomas Muzuwa, on Thursday told a full-council meeting that the deal was structured by the Caretaker Council that presided over the affairs of the city before last year's harmonised polls. He said there was need to revisit the matter.

"There is need for us to be enlightened on this issue, it was done a month before we took over, and we really need to be furnished with all the necessary information so that we deliberate on it," said Muzuva.

Muzuwa got support from almost all councillors in the chamber, who described the proposed deal as a "three decade joke".

Sources at Town House claimed the matter had already been forwarded to cabinet for approval.

But acting town clerk Josephine Ncube told the councillors that the deal was still under consideration.

"The issue of Harare water is now a national issue, and we are still negotiating with that company. We haven't reached an agreement yet," said Ncube.

If an agreement is reached, this would be the second high profile deal by the local authority following the controversial $144m loan from Export and Import Bank of China (Eximbank).

Harare entered into a $144m loan agreement with Eximbank in which China National Machinery and Equipment Import and Export Corporation got the tender to refurbish the city's water and related infrastructure.

Meanwhile, the HCC has resolved to appoint a board of directors to the Harare Water Utility.

Harare mayor, Benard Manyenyeni during the meeting said he had received applications from a "couple of councillors who want to be appointed to the water body" urging, more of the city fathers to show interest in joining the board.