The Sunday Mail
Government on Tuesday formally approached Lowveld sugar producer Tongaat Hulett seeking a $30 million loan to fund the completion of Tokwe-Mukosi Dam in Chivi.
Work on the dam, billed to become Zimbabwe’s largest inland water body upon completion, stopped in December last year after the main contractor, Salini Impregilio of Italy, suspended work over payment arrears.
Government owes Salini about $84 million for work already done. A further $30 million is required to complete the dam project. The project was reportedly 90 percent complete when Salini halted operations on 18 December last year.
Finance and Economic Development Minister Patrick Chinamasa and his Environment, Water and Climate counterpart Saviour Kasukuwere on Tuesday toured the dam project where they met senior Tongaat Hulett officials to discuss the loan.
Minister Chinamasa said Government wanted Tokwe-Mukosi Dam to be completed as soon as possible owing to its vast potential to economically transform Masvingo Province and Zimbabwe at large. He said Government would repay the Tongaat Hulett loan by supplying it with sugar cane irrigation water from Tokwe-Mukosi.
“We need about $30 million to complete Tokwe-Mukosi Dam and we had discussions with management of Tongaat Hulett where we want to borrow the money to finish this dam. Tongaat Hulett will avail the money to complete Tokwe-Mukosi Dam against future sales of water,’’ he said.
Tongaat Hulett acting managing director Mr Shelton Nhari expressed optimism that his company would strike a loan deal with Government that would pave the way for completion of Tokwe-Mukosi Dam.
Minister Kasukuwere hailed the visit by Minister Chinamasa to the dam, saying it was an indication of the Treasury boss’s commitment to see the project finally completed.
He expressed hope that work on Tokwe-Mukosi Dam would be completed by June this year clearing the way for President Mugabe to officially commission it.
Construction of Tokwe-Mukosi Dam is being wholly funded by the Government of Zimbabwe and work started in March 1998 before it was interrupted by work stoppages owing to payment problems. The dam will irrigate about 25 000 hectares in the arid parts of southern Masvingo. — The Herald.
