Chivayo, Mandiwanzira clash

Businessman Wicknell Chivayo has dismissed claims by Nyanga South Member of Parliament Supa Mandiwanzira that he failed to deliver the Gairezi 30-megawatt hydro-power project in the Tangwena area after being awarded the tender during the tenure of former President Robert Mugabe.

Speaking at a recent ZANU-PF rally, Mandiwanzira alleged that the project did not materialise under Chivayo's watch, arguing that its completion would have brought employment opportunities and boosted tourism for surrounding communities.

However, in a detailed statement posted on his social media platforms on Wednesday, 21 January, Chivayo said the assertions were misleading, stressing that the Gairezi project was never awarded to him personally.

He explained that the tender was awarded to a consortium led by Bharat Heavy Electricals Limited (BHEL), a multi-billion-dollar Indian government-owned engineering conglomerate, in partnership with Angelique International Ltd, with Intratrek Zimbabwe (Pvt) Ltd acting as the local contractor.

"The tender for the Gairezi 30MW Hydro Project was not awarded to ‘Chivayo' personally, but to a consortium led by an Indian multi-billion-dollar government-owned engineering conglomerate, BHEL, working together with Angelique International Ltd, while Intratrek Zimbabwe (Pvt) Ltd participated as their local contractor," Chivayo said.

He added that, as is common practice across Africa, local contractors often rely on the credibility, bankability and technical capacity of international original equipment manufacturers (OEMs) to secure and deliver large infrastructure projects.

"In this case, that international credibility was precisely what made the consortium competitive and enabled it to be awarded the tender as the lowest compliant bidder to specification," he said.

Chivayo said the project ultimately failed to take off due to difficulties in securing funding, given its estimated cost of US$113 million for a 30MW plant.

"The fundamental issue that prevented implementation was challenges in achieving financial closure," he said. "The project cost made the business case extremely difficult to finance when tested against lenders' requirements, including return on investment, yield, plant load factor and overall bankability."

He explained that while the project was technically feasible, financiers were not convinced it could generate sustainable cash flows to guarantee loan repayment.

"Unfortunately, the financial model struggled to meet that threshold," he said.

Chivayo also revealed that he incurred financial losses despite the project never commencing, citing the high costs associated with the lengthy bidding process, including international travel to OEMs, mainly in India and other countries.

"As contractors, we incur substantial upfront costs during the cumbersome bidding process for international travel to OEMs before final tender submission," he said. "So if anything, contractors also get disappointed when projects stall, because we invest real money and expect a return."

He further dismissed suggestions that he received any payments from the Zimbabwe Electricity Supply Authority (ZESA) in relation to the Gairezi project.

According to Chivayo, ZESA, through government, opted to prioritise larger, high-yield power generation projects, notably Hwange Units 7 and 8, which added 600MW to the national grid.

"In simple terms, this explains why the Gairezi project and others such as the Harare and Munyati repowering projects were held in abeyance," he said.

Chivayo said he respected Mandiwanzira's concerns as a legislator and expressed hope that the project could be revisited in future under a more suitable funding structure.

"I hope this clarification assists the public to understand, and that all those making speculative comments suggesting that payments were made will be respectfully guided accordingly," he said.