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Zimbabwe central bank fails to pay Equatorial Guinea debt for 40MW solar project

by Staff reporter
08 Dec 2023 at 05:39hrs | Views
The Reserve Bank of Zimbabwe (RBZ) has reportedly failed to fulfill part of its debt to Equatorial Guinea for a local investment in a 40MW solar project in Bwoni Village, Seke District, according to information presented in the High Court.

Old Mutual Life Assurance Company, a creditor in Harava Solar Park, is seeking to rescue the power company after it failed to meet contractual obligations. Equatorial Guinea, having secured approval to invest in Harava Solar Park, claims that RBZ has not adhered to exchange control regulations by not releasing US$15 million for local investment.

Old Mutual is seeking to place Harava under corporate rescue due to defaults and unfulfilled promises by the power company. Harava is an independent power producer in the process of setting up a 20MW solar power plant in Seke District, Dema.

The project is still under construction, with a funding shortfall requiring additional investment to complete. Harava has entered into an Offtake Power Purchase Agreement with the Zimbabwe Electricity Transmission and Distribution Company. Old Mutual believes that placing Harava under corporate rescue is crucial for the survival of the company, contributing to solving the power crisis in Zimbabwe and generating clean energy.

The court has been told that restructuring debts and reshaping shareholding would relieve Harava of its debt burden, enabling it to attract funding and operate the project successfully.

Old Mutual proposed Dr. Oliver Mtasa of Crowe Horwath Welsa Chartered Accountants as Harava's corporate rescue practitioner. The application also requests a stay on all actions against Harava during the corporate rescue proceedings.

Source - newzimbabwe
More on: #Zimbabwe, #Solar, #Debt