Egodini deal terminated

The Bulawayo City Council (BCC) has officially moved to terminate the lease agreement with Terracotta Trading Private Limited for the US$60 million Egodini Redevelopment Project due to the contractor's prolonged failure to implement the project. Only 11% of the work has been completed since the contract was signed in 2015.

Terracotta Trading, a South African contractor, was awarded the tender nearly a decade ago, with plans to redevelop the Egodini site into a modern transport hub and shopping mall. The project was intended to enhance public transport infrastructure and alleviate congestion in Bulawayo's central business district. However, since the closure of the Basch Street Bus Rank and the relocation of vendors in 2016, the project has faced numerous delays and issues.

The closure of Egodini has contributed to significant congestion in the city's central business district, with illegal taxi operators and unregistered vendors contributing to chaos. While a portion of Egodini was reopened in 2024, the reopening has done little to address the challenges, as public transporters have resisted using the new facility due to business viability concerns and stiff competition from illegal operators who continue to intercept passengers from undesignated points.

Council officials and key stakeholders have expressed their frustration over the lack of substantial progress, leading to the decision to seek the cancellation of the lease agreement with Terracotta. The lease agreement, signed on October 5, 2015, required the contractor to develop the site at a cost of US$60 million, with the initial work expected to be completed by 2023.

Despite the passing of nearly a decade, the council noted in its latest minutes that "there was no development by then besides advance preparatory works and demolishing." In response, the council issued a warning to terminate the agreement due to the contractor's non-performance. However, Terracotta moved forward with work on the taxi rank portion of the redevelopment, referred to as Phase 1A, which led to the postponement of the termination notice. Phase 1A was subsequently commissioned in January 2024, with the contractor committing to progress to Phase 1B.

However, the contractor abandoned the site in February 2024, leaving works abruptly halted. While adjustments to Phase 1A were still needed, including the completion of the public transport taxi rank and the establishment of 400 vending bays, the contractor failed to attend to these issues. The project remains at only 11% completion, and the council emphasized that despite several attempts to communicate with Terracotta regarding the inactivity at the site, the contractor had not responded.

Faced with this ongoing lack of progress, the local authority issued a second termination notice, which remains in effect. The council noted that while the issues at hand were considered operational, they did not justify the contractor abandoning the site. In December 2024, the council initiated legal proceedings to formally cancel the lease agreement with Terracotta.

The council also revealed that Terracotta had submitted plans for Phase 1B, which includes the bus rank, fuel station, expanded taxi rank, and some anchor shops. The plans were reviewed and feedback was provided, but no further progress was made.

In light of the decision to cancel the agreement, councillors have requested that more information be shared about the project to address resident concerns. Some councillors have also suggested a meeting between council members and representatives from Terracotta to discuss the situation further.

The Egodini Redevelopment Project was one of 14 tenders submitted for the redevelopment of the site, but Terracotta's inability to deliver has left the city in a state of congestion, with the promised modern transport hub and shopping mall still a distant dream.