Water, sanitation and hygiene (WASH) advocacy group the Community Water Alliance has petitioned acting Harare Mayor Stewart Mtizwa over the controversial Pomona Waste to energy deal.
Through CWA members Christopher Gohori and Joyleen Nyachuru the Alliance says the agreement will underwrite the City of Harare to unmaintainable payment obligations.
“This concession agreement has and will contribute to unsustainable payment obligations to the city, proliferation of illegal dump sites in the city and that the agreement is in bad taste due to the following reasons:
“On the preamble of the concession agreement it is clear that the contracted firm Geogenix B. V will form a project company that will act as the Contractor (Item G). Clause 2.1.3 of the agreement specifically states that Geogenix B. V “shall establish the Project Company which shall carry out the agreement in place of Geogenix B. V and the project company shall replace Geogenix”.
“The agreement goes further to state that “all rights and obligations imposed on Geogenix under the agreement shall be transferred to the Project Company. It is not clear Your Worship whether Geogenix is acting as a shelf-company and why in the first place the agreement was not sought between City of Harare and the company referred to as Project Company. It is also not clear Your Worship whether the project company is already registered or will be registered after the signing of final agreement,” read the petition
The petitioners expressed concern over the agreed fees in the concession saying they will work in favour of the Netherlands registered company.
“Clause 2.2(e) of the concession agreement is disturbing Your Worship. City of Harare is obliged to secure supply and delivery of Minimum Guaranteed Waste Quantities and also payment of Minimum Annual Guaranteed Fee to Geogenix. Clause 22.3.1 further explain this point. The city is obligated to supply a minimum of 550 tonnes per day and pay USD22, 000 per day during the year 2022. In 2023 the city is obligated to supply 650 tonnes of waste per day and pay to Geogenix USD26, 000 per day.
“In 2024 the city is obligated to supply 750 tonnes per day and pay Geogenix USD30, 000 per day. In 2025 the city is obligated to supply 850 tonnes of waste to Geogenix and pay USD34, 000 per day. In 2026 the city is obliged to supply 1000 tonnes of waste per day and pay USD 40000 per day. In other words all targets on quantities of waste supplied per day per day are well calculated to fatten the pocket of Geogenix.
“Clause 22.3.2 is more disturbing. The clause prohibit contesting and disputing amounts payable to Geogenix based on the daily minimum quantities of waste established. Where on earth can a lessor pay lessee for staying at premise wholly owned by lessor? The cost is USD40 per tonne- Clause 22.1. Late payment will generate interest- Clause 23.4.,” the petitioners challenged
The added “The other serious challenge is on appointed representatives to the agreement. I refer you to clauses 2.5.5; 2.5.7; and 2.5.10. Clause 2.5.5 states that during a period when City of Harare has not appointed a representative to the agreement, another “duly authorized” representative of the city shall carry out functions that would have been performed by appointed representative. The million dollar question is who is the duly authorised representative?”
