adminAN investment agreement signed by Zimbabwe and China in August will lead to the speedy completion of the Gwayi-Shangani Dam, with China-Africa Sunlight Energy advancing $10 million to the Zimbabwe National Water Authority (Zinwa) for the purchase of water rights, it has been learnt.
A total payment of $55 million for water rights is expected to be channelled towards the construction of the dam ahead of the company’s ambitious power generation project in the Gwayi area.
Minister of State for Provincial Affairs in Matabeleland North, Cde Cain Mathema, confirmed the development, noting that there was a need for the province to ensure that the payment is not used for other purposes save for the completion of the dam project.
“As it is, very few of us know that China-Africa Sunlight is advancing $10 million for the use of water from the Gwayi-Shangani Dam for their power generation project.
“This is the amount that should be used for the completion of the project and further develop the surrounding areas, this amount was paid to Matabeleland North, particularly Gwayi Conservancy and should be used in the area and nowhere else,” said Cde Mathema.
Contacted for comment, China-Africa Sunlight Energy deputy general manager Retired Colonel Charles Mugari said the $10 million is part of a $55 million advance payment to the water authority for the use of water at the dam.
He said this was a move also meant to quicken the pace in the completion of the dam, so that the power generation plan can also take off.
“What I can confirm is that we are currently working on the modalities of releasing the money, which will be part of the $55 million we want to pay the water authority for the Gwayi-Shangani Dam water rights. The reason for this advance payment is that as a company we will be strongly relying on water from that dam to produce power.
“When we finalise these modalities, I am sure we will know how this money will be paid out and how it will be used, but I envisage it will be used for the completion of the dam,” said Rtd Col Mugari.
He said the company will have a huge say in the implementation of the dam project to ensure that they construct a 300 megawatt power station at the site by 2016.
The second phase, the power project, will focus on methane gas extraction and the construction of another 300MW plant by 2017.
“Last week we agreed on a provisional power purchasing agreement for electricity with the Zimbabwe Electricity Transmission and Distribution Company and now we are working with Zinwa. This shows that it’s now full throttle ahead for us, there is no looking back,” Rtd Col Mugari said.
The $10 million advance comes after the Government also committed another $10 million towards the completion of the $121 million dam.
The dam is the third largest in the country after Tokwe-Mukosi and Mutirikwi, and is a key component of the Matabeleland Zambezi Water Project which envisages a 245 km pipeline from the Zambezi River to Bulawayo.
China Africa Sunlight Energy plans to invest close to $2,1 billion developing coal mines and building a 2 100 megawatt plant in the country to help ease electricity shortages.
The company is a joint venture between Old Stone Investments of Zimbabwe and Shandong Taishan Sunlight and has spent $20 million on exploration. It was further granted rights to look for coal and coal-bed methane in the area in October 2012.
Last week the company announced that it had postponed to mid-month the construction of its Gwayi coal mine and residential complex worth $100 million.
The recent developments come after President Mugabe recently signed several investment agreements during his visit to China, which are set to unlock the country’s economic potential and create jobs for ordinary Zimbabweans.
According to the Zimbabwe Agenda for Sustainable Socio-Economic Transformation economic blueprint, the Gwayi-Shangani Dam, together with Tokwe-Mukosi, Semwa, Bindura, Dande, Tuli-Manyange and Marovanyati dams, are part of the quick wins to be implemented within the infrastructure and utilities cluster.
Online Reporter