HARARE, Zimbabwe — Businessman Wicknell Chivhayo has dismissed claims that his firm was responsible for the failure of a multimillion-dollar hydroelectric project in Nyanga, citing “bankability” issues rather than mismanagement.
Chivhayo’s statement, released Wednesday via X, follows public criticism from Nyanga South lawmaker Supa Mandiwanzira over the stalled 30-megawatt Gairezi Hydro Power Project.
The legislator recently addressed constituents in the Dazi area, lamenting that a project once promised to bring jobs and electricity had been “held in abeyance” for years. Mandiwanzira noted that roads were even rehabilitated during the era of former President Robert Mugabe in anticipation of a groundbreaking ceremony that never took place.
Chivhayo countered that the tender was awarded to a consortium led by Bharat Heavy Equipment Limited (BHEL), an Indian government-owned conglomerate, and Angelique International Ltd., with his firm, Intratrek Zimbabwe, serving as the local contractor.
The primary obstacle to the $113 million project was a lack of financial closure, according to Chivhayo. He argued the project’s cost-to-output ratio made it difficult to secure funding when tested against lenders’ requirements for return on investment.
“It is not enough to have a technically feasible hydro power plant,” Chivhayo said. “Financiers must be satisfied that the project has sustainable cashflows and repayment security. Unfortunately, the financial model struggled to meet that threshold.”
Chivhayo also emphasized that no public funds were lost, stating that strict project finance requirements mean disbursements are only made after technical milestones and bank guarantees are met. He claimed the government ultimately prioritized higher-yield generation projects, such as the 600MW expansion of Hwange Units 7 and 8.
Mandiwanzira’s remarks have reignited a broader debate regarding stalled energy investments in Zimbabwe. The Gairezi site remains one of several infrastructure projects, including the Harare and Munyati repowering projects, that have failed to move past the preparatory stages despite high-profile tender awards.
The Ministry of Energy and Power Development has not yet commented on whether it intends to restructure the Gairezi project for future development.
