ZPC sets record straight on Chivayo USD22 million damages on Gwanda solar deal
Harare- The Zimbabwe Power Company (ZPC) has on Friday deciphered the Supreme Court appeal ruling on the ZPC vs Wicknel Chivayo’s Intratek.
The seemingly ambiguous ruling resulted in gross misinterpretation by some sections of society and media stables.
Guided by their legal counsel Muvingi and Mugadza, ZPC issued a statement to set the record straight and the correct legal implications for public intrest.
“The appeal by the Zimbabwe Power Company (“ZPC”) against a High Court decision which had found that the Contract for the development of the 100MW Gwanda Solar Project was still valid. ZPC’s appeal was dismissed after a hearing before Honorable Justices Chiweshe, Makoni and Musakwa. The full written judgement containing reasons for the Court’s determination are yet to be furnished.
“It is important to give the correct narrative on the legal implications of the Supreme Court judgement, considering that certain online articles have published an incorrect and misleading position
“The Supreme Court judgement has the effect of upholding the High Court judgement granted by Honourable. Justice Msithu in January 2023, in which the Gwanda EPC Contract was found to be still valid and binding on both ZPC and Intratrek Zimbabwe (Private) Limited (“Intratrek”),” reads part of the statement.
It further reads:
“For the avoidance of doubt, the High Court judgement did not award Intratrek damages in the sum of US$22 Million as alleged by some online publications or any other sum in damages for that matter. To the contrary, the High Court only granted an order for specific performance, which in simple terms requires parties to perform their respective obligations under the EPC .”
The statement further states that the Supreme Court is the final Court of Appeal and today’s judgment is that ZPC and Intratrek will revert to the position that they were before the 23 April 2018 when the EPC Contract was cancelled.
“It is equally important to highlight that the judgment does not create any further liability on ZPC outside that which is contained in the EPC Contract signed with Intratrek on 23 October 2015. Consequently, Intratrek is therefore still required to satisfy all conditions precedent to the commencement of the project, which it had failed to achieve as at 23 April 2018.
“In abiding with the Supreme Court judgement, Intratrek is now required under the reinstated EPC Contract to facilitate the financing of the US$172 million contract within the contractual timeframe as the requirement of financial closure is key for the project to commence. Should such financing be raised, the borrowing instruments must be approved by Government prior to implementation of the Project,” read the statement.
In view of this development, it means “ZPC remains committed to a sustainable supply of power to the country in support of the National Development Strategy and Vision 2030 objective of ensuring National Access and Total. Electrification”.
