LOCAL Government and Public Works Minister July Moyo has directed Harare City Council to rescind its resolutions to suspend its contract with Geogenix B.V on the Pomona Waste to Energy project.
This comes as Geogenix B.V wrote to the Government advising it of Harare City Council’s failure to honour its obligations of paying a bill of US$750 000 for May.
Minister Moyo said pursuant to the passing of the resolutions on June 2, 2022, council advised the Ministry, through a letter dated 10 June 2022, of its incapacity to pay the sum invoiced for the month of May.
“In terms of your contract, the passing of a resolution does not in any way expunge the obligations set out in the contract by operation of law. The obligations remain pending unless and until a consensus is reached by the contracting parties.
“Needless to say, the failure and or neglect to pay the May invoice has serious repercussions, not only with respect to council’s obligations, but also on Government who is the Guarantor of the project. Your failure and or neglect to pay has resulted in accumulation of arrears including interest due to the project,” he said in a letter to Harare City Council.
Minister Moyo said in his considered view, the resolutions passed were gratuitous and not in the interests of the residents of Harare and the public at large, a burden which is now cascading to residents and therefore cannot be allowed.
“In any case, in our reading of your contract with Geogenix B.V there is no provision for unilateral action by either Party to suspend the same,” he said.
Minister Moyo said among other resolutions passed by Harare councillors are that council appoints a Special Committee in terms of Section 100 of the Urban Councils Act (Chapter 29:16) to investigate the Pomona Waste to Energy Project and report to council in two weeks time.
Other resolutions are that the contract between the City of Harare and Geogenix B.V on the Pomona Waste to Energy Project be suspended with immediate effect.
Also that council mandates the Mayor to nominate members of the Special Committee who will include specialists from outside the council.
The €304 million Pomona dumpsite waste-to-energy project is expected to generate up to 22MW of electricity.
Apart from electricity generation, the project is also poised to generate at least 300 jobs, boost economic growth and reduce the country’s import bill for electricity with the investor already exploring other investment opportunities in the country. Herald