Zanu PF chef loses fortune in toned down water deal

A controversial US$138 million contract awarded to Helcraw Electrical Projects, a company owned by Zanu PF legislator Farai Jere, for the development of Harare's water infrastructure has been significantly reduced to US$30 million following public backlash and scrutiny.

The deal, originally part of a US$1.5 billion urban infrastructure initiative, was awarded without a public tender by the Ministry of Local Government. Helcraw, in partnership with Chinese firm Hangzhou Laison Technology, was mandated to carry out a wide range of works to modernise the capital's struggling water reticulation system.

However, the transaction was met with strong resistance from residents and civil society organisations, who questioned the legality of the procurement process and raised concerns about transparency and the city's capacity to fund such a massive project. Amid the uproar, authorities have now scaled down the project, limiting Helcraw's role to supplying smart water meters  -  an area where the company has previously demonstrated competence.

A source close to the developments, speaking on condition of anonymity, said the decision to trim the contract stemmed from funding constraints and a reassessment of priorities. "The scope of the project was reduced from US$138 million to US$30 million after authorities decided that some of the activities listed were not very important in light of limited funding," the source said. "The primary reason was to allow Helcraw to focus only on the supply of smart meters, which is their core area of expertise."

The initial agreement had included several components beyond metering, such as rehabilitating the Alex pump station, upgrading Darwendale, replacing 100 kilometres of old piping, and constructing a US$20 million solar power plant. But questions over Helcraw's capacity to deliver on all fronts, coupled with concerns about the financial model and value for money, led to the drastic restructuring of the deal.

When contacted in January, Jere insisted the contract had been awarded based on the company's proven performance in the utilities sector, and not because of his affiliation with the ruling party. "It has nothing to do with my role as a legislator," Jere said at the time. "It was a matter of me proposing and being able to proffer solutions. We have notable achievements. We have done electricity meters. We have done water meters in Karoi. We are the ones who proposed this to Zinwa."

Despite his defence, critics have maintained that the process lacked transparency. Harare Residents Trust director Precious Shumba described the deal as opaque and politically influenced. "There is a lack of transparency and accountability in the contracting of Helcraw. In the opinion of the Harare Residents Trust, Helcraw was imposed on the City of Harare by the national government with the complicity of council officials and a few policymakers at Town House," Shumba said. "With the lack of transparency in the deal, we strongly suspect that this is consistent with the government's push for the privatisation of public services."

At the time of going to print, questions sent to Local Government Minister Daniel Garwe, Harare Mayor Jacob Mafume, and acting Town Clerk Phakamile Mabhena Moyo had not been responded to. Jere also did not provide fresh comments.

Helcraw's Chinese partner, Hangzhou Laison Technology, is said to have presented proof of funding for the initial project. However, the revised contract suggests that only limited aspects of the original proposal will now be pursued  -  raising questions about the future of Harare's long-overdue water infrastructure overhaul and the city's capacity to address its worsening service delivery crisis.