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The Government has been funding the construction of the Tokwe-Mukosi from its own resources

Business Reporters
THE construction of Tokwe-Mukosi Dam is expected to be completed before the beginning of the rainy season after Government committed to release the $20 million required to complete the project and clear outstanding arrears to the contractor.

This comes after the main contractor, Salini Impreglio JV had threatened to leave the site by the end of this month over arrears.

Last week, Government officials visited the site where Finance and Economic Development Ministry made a commitment to avail the funding.

The Infrastructure Development Bank of Zimbabwe will raise the money on behalf of the Government.

Salini had written to the Government notifying its intention to stop construction works by end of this month over outstanding payment of $16 million, which should be paid in Euros.

“We are already mobilising the funds needed to complete the dam and we can assure you that we will meet the deadline before the beginning of the rainy season,” Finance and Economic Development permanent secretary Mr Willard Manungo said.

The remaining works include road works, valve and steel works, grouting and dry works.

On the outstanding payment, he said: “We have made major strides to support the completion of the project and we will ensure that the Euros required are availed immediately.”

Failure to mobilise funding would have resulted in Salini leaving the site and moving their equipment to other project sites.

This would have resulted in huge site remobilisation costs in the event the project resumes at a later stage.

In addition downstream economic activities and benefits of the expanded irrigation programmes and the power generation plant would have been deferred, to the detriment of Government realising the full benefit of this vital investment in a water resource.

The Government has been funding the construction of the Tokwe-Mukosi from its own resources through the Public Sector Investment Programme, being allocations from the National Budget. Since 2001, the Government has spent $262 million on the dam with an additional $13 million having been set aside in the 2015 National Budget.

Irrigation is the main economic value to be realised from the dam. At a yield of 364 000 mega litres per annum, the dam will have sufficient water to irrigate up to 25 000 hectares.

Economic value will also be realised from the mini hydro project where the Government has already made significant investment through providing funding for civil works.

The construction of the dam commenced in April 1998 and was suspended a year later due to funding constraints. The project then went through a stop-start process from period 2001 to 2005.

Construction works resumed in May 2011 with initial plans to complete the project in November 2013.

Impoundment was to start in November 2013 with the first supply of irrigation water targeted for 2014.

The contractor was granted an extension to complete the project by August 2014 mainly because there were additional excavations on the foundations as well as financial constraints.

Salini country representative Mr Steve Muza said the contractor would remain on the site following Government’s commitment.

“We wrote to our client notifying them of our intention to stop works due to outstanding arrears,” he said.

“However, Government and other stakeholders are putting an effort and they have promised us that they will avail the Euros they owe. Therefore, we will continue with construction.”