Chivayo Clarifies Gairezi Hydro Project Status Amidst Financial and Implementation Challenges
Wicknell Chivayo addressed concerns regarding the stalled Gairezi 30MW Hydro Power Project, clarifying that the tender was awarded to a consortium led by Bharat Heavy Equipment Limited and Angelique International Ltd, with Intratrek Zimbabwe as the local contractor. The project, which has faced financial closure challenges, has been deprioritized by the Zimbabwean government in favor of higher-yield projects like Hwange Units 7 and 8. Chivayo expressed disappointment over the delays but remains hopeful for future reconsideration of Gairezi with a viable funding model.
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Wicknell Chivayo responded to allegations regarding the stalled Gairezi 30MW Hydro Power Project, clarifying that the tender was awarded to a consortium led by Bharat Heavy Equipment Limited (BHEL) and Angelique International Ltd, with Intratrek Zimbabwe as the local contractor. The project, costing USD 113 million, faced financial closure challenges, failing to meet investor requirements for return on investment and cash flows.
Chivayo emphasized that technical feasibility alone does not guarantee funding. He noted that contractors incur significant upfront costs during the bidding process and expressed disappointment over the project's delay.
The Zimbabwean government prioritized higher-yield projects, like Hwange Units 7 and 8, which delivered 600MW, sidelining Gairezi and similar initiatives. Chivayo remains hopeful for a future reconsideration of the Gairezi project with a sustainable funding model.
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