Cabinet okays Green Fuel takeover

Under the Indigenisation and Eco­nomic Empowerment Act, Govern­ment will now have 51 percent share ownership in the proj­ect, while 10 per­cent will be given to the com­munity.
The remaining 39 percent will remain with the private investors.
Agriculture, Mechanisation and Irri­gation Development Minister Joseph Made yester­day said the Build, Operate and Transfer arrangement under which the project was under­taken was null and void.
He said the BOT arrangement was not regu­larised through Cabinet.
Minister Made said the project should now become a joint venture between Government and private investors whose ownership struc­ture should be in the framework of the coun­try’s indigenisation and empower­ment laws.
“Cabinet concluded that the BOT agree­ment signed between Arda and Green Fuel and other partners was null and void as it has not been autho­rised by Government through Cab­inet,” he said.
“Cabinet recommended that there should be urgent need to regularise the project and the Arda general man­ager can come to the Minis­ter of Agri­culture for condonation.
“The prepared position by Cabinet is that the share ownership structure of the project should be in line with the country’s indigenisa­tion and empower­ment laws. The position of Cabinet is not ambiguous.”
But Arda chairman Mr Basil Nyabadza said the BOT arrangement was the existing bind­ing legal position of the project. He said Article 17 of the Arda Act gave them full mandate to commit Arda to any contract.
Mr Nyabadza said the Ministry of Agricul­ture, Mechanisation and Irriga­tion Develop­ment was informed weekly on the develop­ments of the proj­ect.
“From inception up to now, every­thing has been done with full informa­tion being relayed to our parent Min­istry on a weekly basis,” he said.
“The board stands by its decision to engage a partner under a BOT arrange­ment.
“Mankind can only delay the proj­ect, but do not have ability to stop it because it is God-given.”
Minister Made insisted that it should be clear that Arda would have to work in the interest of the Govern­ment, its shareholder.
He said Government recognised efforts made by the investors, but every­thing should be transparent and there should be full disclo­sure of proj­ect fig­ures and finances.
Minister Made said Cabinet also agreed that Green Fuel was free to sell its ethanol at any configuration rate without any chal­lenges.
“Cabinet recommended that Green Fuel will have to market their product either E100 or E20 or E85 on an optional basis,” he said.
“It also recommended that any excess ethanol be exported without hin­drance.”
Mr Nyabadza said the country was forking out US$50 million a month on petrol and if Gov­ernment had intro­duced mandatory blending it could immediately save US$40 000 a day.
The figure to be saved would increase to US$700 000 a day within three months.