January 11, 2023

Chivayo wins 22 million USD damages against ZPC

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ZTN Correspondent

Intratrek Zimbabwe (Pvt) Ltd and its managing director Wicknell Chivayo has won the US$22 million damages claim for breach and repudiation of contract against Zimbabwe Power Company.

The judgement brings finality to a long-standing contractual dispute between the two companies over the interpretation and implementation of an agreement entered into on 23 October 2015. The agreement was signed subsequent to a successful tender bid, for the engineering, procurement, and construction of a 1000MW Gwanda Solar Power Station Project which INTRATREK ZIMBABWE (PVT) LTD was awarded as the lowest compliant bidder to specification out of 6 bidders at a cost of USD 173 million.

In his judgement, Justice Siyabonga Paul Msithu criticized ZPC for frustrating its contractor who won the project in an open tender having gone through a fair and thorough process sanctioned by the then State Procurement Board.

“His evidence is clear and straight to the point. He was subjected to lengthy cross-examination and remained firm on his assertion of the facts which were solidly backed by mostly common-cause documentary evidence. Where he had no exact recollection he stated so. He readily conceded some matters which were put to him. His body language and composure were consistent with one who told the truth”, said Msithu.

According to the joint report done by ZPC and INTRATREK all pre-commencement works equivalent to the advance payment of US$5 million dollars was completed and ZPC owes INTRATREK US 693 thousand dollars with work valued at US 1 191 374 million dollars not paid for and yet to be executed.

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