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Commissioning equipment before transporting liquid cargoes easy to solidify #vore #丸吞み #digestion

38,455 Aufrufe • vor 3 Monaten •via X (Twitter)

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Dear Hon. @SupaMandiwanzira, Thank you so much for your insightful and PASSIONATE comments on the 30MW Gairezi Hydro Power Project and more importantly, for consistently REPRESENTING the genuine expectations and hopes of the people of Nyanga Constituency. I fully appreciate and SHARE the frustration within the constituency, particularly after the preparatory works that were done and the excitement that was created around EMPLOYMENT prospects which the Project would have created. As Zimbabweans, we all want to see such projects being COMMISSIONED because beyond electricity, they carry real socio-economic benefits for communities. Allow me to clarify and give a brief summary of the pertinent facts ; The tender for the Gairezi 30 MW Hydro Project was not awarded to “CHIVAYO” personally, but to a consortium led by an Indian Multi-billion dollar Government-owned engineering conglomerate BHEL(Bharat Heavy Equipment Limited ), working together with Angelique International Ltd , while Intratrek Zimbabwe (Pvt) Ltd participated as their local contractor. Like many local contractors across Africa, Intratrek rides on the CREDIBILITY, bankability and TECHNICAL CAPACITY of international OEM partners in order to achieve project delivery. In this case, that international credibility was precisely what made the consortium competitive and to be awarded the tender as the LOWEST compliant bidder to specification. The fundamental issue that prevented implementation was challenges in achieving FINANCIAL CLOSURE. The project cost was USD 113 million for 30MW, which made the business case extremely DIFFICULT to finance when tested against the lenders’ requirements of Return on Investment, yield, asset return, plant load factor, and overall BANKABILITY. In simple terms, it is not enough to have a technically feasible hydro power plant. Financiers must be satisfied that the project has sustainable CASHFLOWS and repayment security. Unfortunately, the FINANCIAL MODEL struggled to meet that threshold. It is also important for both you and the general public to understand how projects like this actually work. Before any DISBURSEMENT is made, there are strict project finance requirements such as Letters of Credit, Advance Payment Guarantees, Performance Guarantees, supplier guarantees, OEM confirmations and technical milestones such as Factory Acceptance Tests and inspections for key equipment. As Contractors, we even incur substantial UPFRONT COSTS during the cumbersome bidding process for international travel to OEMs often in India and elsewhere overseas, before the final tender submission. So if anything, Contractors also get DISAPPOINTED when projects stall, because we invest real money and expert a return out of it. We are always ready to execute because the more we CONSTRUCT and commission projects, the more we EARN through fairly reasonable margins. It is however understandable that in this case, ZESA through Government ultimately prioritised high-yield generation projects such as Hwange Units 7 & 8 which gave a total output of 600MW after project execution and commissioning . In simple terms , suffice it to say this explains why the Gairezi project and others such as Harare and Munyati Repowering Projects were held in abeyance. I therefore respectfully acknowledge your concerns as an Hon. Member, and I look forward to the project being REVISITED by Government and the most ideal funding structure being considered for its development. I hope this clarification assists the public to understand and all those making SPECULATIVE comments suggesting that payments were made , should also be respectfully guided accordingly. I THANK YOU.

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