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Monday, May 27, 2024

Chivhayo wins case against ZPC

Story by Fungai Jachi

THE High Court has ordered the Zimbabwe Power Company(ZPC) to pay Wicknell Chivhayo US$22 million in damages for breach of contract after ruling that the Harare businessman’s company, Intratrek, has a valid contract for the Gwanda Solar Project.

The judgment by High Court Judge, Justice Paul Msithu has brought finality to a long-standing contractual dispute between the two companies over the interpretation and implementation of an agreement entered into in 2015.

The agreement was signed after a successful tender bid, for the engineering, procurement, and construction of a 100-Megawatt Gwanda Solar Power Station which Intratrek Zimbabwe (PVT) LTD was awarded by ZPC.

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

Chivhayo’s lawyer, Advocate Lewis Uriri confirmed the development.

“What this means is that there was no breach by Mr Chivayo or Intratrek and that the project has to be completed and obviously taking into account what has to be paid to them,” Advocate Uriri said.

The legal battle between the two companies left the 100 Megawatt Gwanda Solar Project in limbo and the High Court judgment gives the green light for the implementation of the project.

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