The Hwange Local Board (HLB) is set to sign a memorandum of understanding (MoU) with Zimbabwe Power Company (ZPC) for the Mpumalanga housing project that is set to build around 500 houses for ZPC employees. This comes after an HLB case against ZPC for a $6 million debt was recently struck from the court’s docket due to a procedural error.
Also Read:Â Africa’s largest steel plant under construction in Zimbabwe
HLB has petitioned the Bulawayo High Court for an injunction ordering the electricity provider to pay the municipality $6 086 135,93 in unpaid debt. According to the council, the debt shall be paid with 6% interest until paid in full, as required by the Urban Councils Act. According to reports, the debt has been outstanding for more than 25 years, and the interest rates have been revised annually, the most recent being on January 20. ZPC has opposed the rate reviews but has not paid the entire account, resulting in arrears.
In light of the recent developments, HLB town secretary Ndumiso Mdlalose stated that the municipality was willing to assist in constructing housing for ZPC’s workers, which was being transferred from the Ingagula area. According to council records, Ingagula is polluted owing to its closeness to the Hwange Thermal Power Station. The company’s attitude on the ZPC housing project, according to Mdlalose, has not altered. He said the corporation was still committed to seeing the project through to completion since it is important to the community and the country. HLB will be in charge of the project’s approval and legal compliance plan.
Kickstarting the Mpumalanga Housing Project
According to reports, ZPC is speeding up the signing of Memorandums of Understanding with parties participating in the new settlement’s development. According to a council report, ZPC project executive Engineer Fanuel Mavhondo stated that dwellings and social amenities should begin as soon as feasible. The goal is to meet the Hwange Thermal Power Station expansion project’s commissioning timeline.
Mavhondo remarked that the corporation could not let the $1.55 billion in infrastructure sit idle merely because they do not have a place to house employees who will be working there. As a result, the corporation must guarantee that ZPC enters into memorandums of understanding with the local government (HLB) and Zinwa. On behalf of ZPC, ZENT (ZESA Enterprise) is coming to assist in constructing the dwellings. ZENT is a ZESA Holdings wholly-owned company that provides engineering solutions to Zesa Holdings businesses. Unit 7 of the Hwange Power Station expansion project is projected to be operational in October 2022, according to Mavhondo. The commissioning of Unit 7 is scheduled for three months before the start of commercial operations, at which time accommodation for operations and maintenance personnel will be necessary.
