THE US$138 million deal awarded to a firm controlled by Zanu PF legislator Farai Jere to develop Harare’s water reticulation facilities has been drastically reduced to US$30 million following an uproar, the Zimbabwe Independent can reveal.
The transaction is part of a broader US$1,5 billion initiative meant to address myriad problems confronting the capital city.
The Ministry of Local Government handpicked Jere’s Helcraw Electrical Projects to execute the mandate in partnership with Chinese-based Hangzhou Laison Technology, according to documents seen by the Independent in January.
But the decision was fiercely resisted by representatives of Harare’s ratepayers. They queried whether the deal had followed approved public tendering frameworks and how the project would be funded considering the huge capital outlays required.
This week, a source close to the transaction told the Independent Helcraw’s mandate had now been confined to supplying smart meters, an area where it has had a demonstrable track record.
“The scope of the project was reduced from US$138 million to US$30 million after authorities decided that some of the activities listed were not very important in light of limited funding,” the source said, speaking on condition of anonymity.
“The primary reason why the scope of work was trimmed was that Helcraw would be given the chance to only supply smart meters, which is their specialty based on the work they have done before.”
Jere’s firm has previously been awarded tenders to supply smart water meters by various local authorities, the legislator told this newspaper in January.
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The source, who added that Harare was also battling to contain non-revenue water (NRW), said authorities also considered Helcraw’s capabilities in delivering projects.
NRW refers to the difference between the amount of water a utility pumps into a distribution system and the amount that is billed to customers.
Added the source: “They looked at areas of competency due to the detail on the various scope of work submitted. They had to streamline due to capacity challenges. What they got was in line with the NRW critical path analysis.”
Questions sent to the Minister of Local Government and Public Works, Daniel Garwe, and Harare mayor Jacob Mafume had not been addressed at the time of going to print last night. Inquiries sent to acting Town Clerk Phakamile Mabhena Moyo also drew blanks.
According to the initial financing model gleaned by the Independent, Helcraw was supposed to supply smart meters for 350 000 properties at US$96 million.
The same initial financing model shows that Helcraw’s responsibilities included upgrading the Darwendale pump station for US$200 000, installing dewatering pumps for US$45 000 and fitting raw water flow meters for US$75 000.
A budget was proposed for rehabilitating Harare’s distribution network, with Helcraw tasked with key upgrades, including US$1,75 million for Alex pump station rehabilitation, US$23 million for replacing 100km of piping and US$96 million for supplying prepaid meters to 350 000 properties.
Additionally, Helcraw was also tasked with establishing a US$20 million solar power plant to support the initiative, according to the financing model.
At the time of going to print, Jere had not responded to questions from the Independent.
Harare Residents Trust director Precious Shumba told the Independent that the Helcraw deal was “opaque”.
“There is a lack of transparency and accountability in the contracting of Helcraw. In the opinion of the Harare Residents Trust, Helcraw was chosen, in fact imposed on the City of Harare by the national government with the complicity of council officials and a few policymakers at Town House,” Shumba said.
“With the lack of transparency in the deal, we strongly suspect that this is consistent with the government’s push for the privatisation of public services.”
In January, Jere said Helcraw was awarded the lucrative tender based on its competence, not his political affiliation with the ruling party.
“It has nothing to do with my role as a (Zanu PF) legislator,” he said then. “It was a matter of me proposing and being able to proffer solutions. We have notable achievements. We have provided electricity meters. We have done water meters in Karoi. We are the ones who proposed this to Zinwa.
“Modalities on how the money will be repaid are being looked at. We will be collecting our money over a period of five to 10 years, but those modalities are still being fine-tuned.”
Responding to questions from the Independent in January, Jere said Helcraw’s Chinese partner, Hangzhou Laison Technology, had provided proof of funding for the project.
