Harare City pulls plug on investors . . . Terminates multimillion-dollar deals . . . Gives ultimatum to four others

Innocent Ruwende Senior Reporter
Harare City Council has terminated eight multimillion-dollar deals it entered with various investors after the projects failed to take off within the agreed time frame.

Some of the investors just went quiet.

The city gave four other investors a 30-day reprieve to put their houses in order or else the deals would be cancelled as well.

Among the deals was the High Glen Textile Factory deal signed with a Chinese firm.

The firm, Ningbo Baitai of China, committed $42 million in 2011, to establish a textile manufacturing, oil processing and stock feed business and land for the project was allocated near High Glen Shopping Centre.

Nothing has materialised to date.

Harare also signed a deal with SBT Juul Africa for the development of a resort at Cleveland Dam and for the development of Harare (Madokero) Western Node.

SBT Juul Africa was supposed to construct a high class hotel, shopping mall and bus terminus.

The same company also signed a deal to upgrade Rufaro Stadium, building outstanding grand stands, create a business unit under grand stand and to install bucket seats.

In 2013, Pearl Properties partnered Harare City for the construction of a $40 million upmarket bus terminus, shopping mall, a parking lot and office blocks at the Fourth Street bus rank.

The project was expected to take two years, with the city providing land, technical and intellectual input.

Pearl Properties was supposed to provide funds, but the project has not taken off, prompting council to cancel the deal.

According to a council report on joint ventures and Memorandum of Agreements which are not performing, an initial due diligence report was submitted on the Fourth Street rank deal, but negotiations to sign Joint Venture Agreements have stalled and the Memorandum of Agreement has since expired.

“A letter was written to the developer advising of the expiring of the MOU. Progress is at standstill,” reads the report.

According to the recent minutes of the Business Committee, the city also terminated an agreement to construct a modern hospital with Westend Medicare because its partner did not provide adequate proof of financial capacity, although proposals and designs had been submitted to council.

Another hospital joint venture between the city and Imageburg (Pvt) (Ltd) for a construction of a private clinic in Parktown, Waterfalls, was also cancelled.

The Kumvura Project, which was set for Harava Dam, was terminated after the investor C/O Brook (Pvt) Ltd went quiet.

An agreement with Zetmail (Pvt) Ltd) for the construction of home industries in Cranborne was also cancelled.

Another undisclosed deal with East Giant was also terminated.

“The committee noted, with concern, that all of the projects had not taken off the ground as provided for in their respective signed agreements with council,” reads the report.

“The committee considered individual projects and was of the view that the respective agreements be cancelled forthwith and that council take appropriate action to invite other potential investors.

“After discussion, the committee then resolved to recommend that council terminates the agreements entered into with the partners on the grounds of non-performance, as well as expiry of the implementation period of the same.”

Acting town clerk Mrs Josephine Ncube was tasked to make a follow up on a deal with A1 Taxi Company to introduce high-volume buses to service various routes in the capital.

The venture would displace commuter omnibuses.

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