Govt moves to pay off Chinese contractor

Published: 30 August 2017

GOVERNMENT has paid half of the $3 million debt owed to a Chinese contractor who constructed the multi-million dollar Beitbridge Water Treatment Plant.

China International Water and Electric Corporation (Ciwec) constructed the $40 million plant, targeted at curbing a severe water crisis in the arid border town, and has been camped at the site for two years since completing the job.

Ciwec has reportedly refused to release information on how government could operate the state-of-the-art plant commissioned by Vice President Phelekezela Mphoko recently until the full amount has been paid off.

According to a Zimbabwe National Water Authority (Zinwa) insider, $1,5 million was due for payment soon after the project was completed, but the figure has since ballooned to $3 million after factoring in interest.

Zinwa's corporate communications manager, Marjorie Munyonga, told the Southern News this week that government, through the ministry of Environment, Water and Climate, the Finance ministry as well as the relevant institutions such as the Reserve Bank of Zimbabwe and the Infrastructure Development Bank of Zimbabwe, was seized with the matter and has taken all steps to ensure that the contractor is fully paid.

"As part of these endeavours, payment of $1,5 million was made to the contractor last week and efforts to clear the arrears in the shortest possible time are underway," she said.

Despite the arrears, Manyonga said government and the Asian firm remained in good books, adding that their continued presence at the site was nothing but "part of the contractual obligations".

"In terms of the contract, there is a provision for a mandatory defects liability period in which the contractor remains on site for a certain period after completing the job.

"During the period, the contractor oversees the running of the system and is required to address and rectify any defects that may arise during the period," she said.

During the period, Munyonga said, the contractor will need access to the treatment plant.

"The contractor can only leave the site completely after the lapse of this period.

"This is a standard international practice."

The plant is set to benefit the dry communal areas of Matshiloni, Dumba, Lutumba, Malala Tshapfuce and Nuli, among others.

It was built on the back of a cholera outbreak that claimed thousands of lives across the country in 2008 and 2009.

Government funded the greater part of the project, though a $2 million grant was allocated for the project by the World Bank in reaction to the cholera outbreak.
- dailynews

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