Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
THE long-delayed Egodini Mall and transport hub redevelopment in Bulawayo has taken yet another twist, with the South Africa-based contractor, Terracotta Trading (Private) Limited, seeking a drastic drawdown on its proposed investment in the project from US$60 million to US$10.5 million.
Egodini was closed in 2016 to pave the way for the construction of a modern shopping mall and bus terminus, initially pegged at an estimated cost of US$60 million.
However, since the inception of the project, Terracotta has struggled to meet key targets, primarily due to financing constraints.
To date, only Phase One, comprising the taxi rank catering mainly to western suburbs routes, has been delivered.
Major works, particularly the mall component, remain incomplete.
The protracted delays have drawn criticism from residents and civic groups, who blame the project’s sluggish pace for worsening congestion and disorder in the city centre, where informal traders and commuter omnibuses now operate from undesignated points.
According to the latest City of Bulawayo council agenda, Terracotta has reportedly formally proposed a reduction in the project’s scope and investment.
“In an earlier meeting, the Developer, Terracotta, had alluded to the desire to change the project investment from US$60 million to US$10.5 million in the redevelopment project,” reads part of the official report.
However, council officials indicated that such a drastic reduction in investment would necessitate a formal change in the scope of the project, which would then require the entire project to be re-advertised in accordance with procurement regulations.
“The City’s Technical team advised the Developer that such a variation could only be possible with a change in the scope of the project, which would entail re-advertising the entire project on the changed scope,” the report further reads.
Terracotta had initially won the tender with a submitted project cost of US$59,599,480.48, ahead of two other bidders — Company A, which proposed US$30 million, and Company B, which bid US$3 million.
“The City’s Technical team informed the Developer that such a reduction would only be feasible with a change in the project scope, which would require re-advertising the entire project with the new scope,” the report reiterates.
“Additionally, the Developer was reminded that the bid price they submitted during the tender stage forms part of the contract.”
Meanwhile, the council has resolved to extend the six-month notice of tender cancellation, which was initially set to expire in mid-June 2025. The new deadline has been pushed to 12 September 2025 to allow for further engagement on the contract price and project scope.
“The request by the Developer for the relaxation of the cancellation notice was discussed, and the meeting resolved that the notice be extended by a further three months,” the report notes.
“This was proposed to allow further engagement on the contract price. If the Developer insists on reducing the scope, it would make it imperative to terminate the contract in line with the requirements of the Procurement Act.”
The Egodini project, once touted as a major infrastructure upgrade for the city, continues to face an uncertain future amid financial constraints and scope revision proposals.
