Helcraw Electrical Projects, a private company, has been awarded a US$138 million government contract to upgrade Harare’s water infrastructure, reported the <a href="https://www.theindependent.co.zw/local-news/article/200037344/zanu-pf-mp-awarded-us138m-water-deal-harare-residents-to-be-levied-us6-every-month-for-up-to-10-years">Independent</a>.
Helcraw plans to charge each household in Harare US$5.50 monthly for 5-10 years to recoup its investment. With an estimated 350,000 houses in Harare, this could generate around US$23.1 million per year for the company.
Over 10 years, Helcraw could potentially earn a profit of US$93 million from the project, which aims to increase Harare’s daily water production to 520 million litres.
The contract was allegedly awarded to Helcraw, chaired by ZANU PF legislator Farai Jere, without a tender process. The company is responsible for various upgrades, including the Darwendale pump station, dewatering pumps, and raw water flow meters.
According to documents seen by the Independent, the government will cover the cost of clearing chemical debt and stocking chemicals, supporting the generation of 450 million litres daily from Morton Jaffray and Prince Edward water treatment plants at a cost of about US$7.9 million.
A proposed financing model also budgets US$542.88 million for rehabilitating Harare’s distribution network.
Helcraw is tasked with key upgrades, including US$1.75 million for Alex pump station rehabilitation, US$23 million for replacing 100km of piping, and US$96 million for supplying prepaid meters to 350,000 properties.
The city will finance the replacement of 20km of piping at US$15 million, while a PPP will mobilize US$154 million for a 2,580km pipeline overhaul and new reticulation work for the new city at US$80 million.
Jere denied favouritism claims, saying the contract was awarded based on his company’s proposals and track record, not his political role. He said:
<blockquote>
It has nothing to do with my role as a legislator. It was a matter of me proposing and being able to proffer solutions. We have notable achievements.
We have provided electricity meters. We have done water meters in Karoi. We are the ones who proposed this to ZINWA.
</blockquote>
Jere added that the project cost is still being negotiated by the involved parties. He said:
<blockquote>
The cost of the project is still not clear as there are meetings held daily to adjust. All we did was to propose. We are yet to get the actual figure. As per our contract, the project is a 24-month project.
</blockquote>
Jere said Helcraw’s Chinese partner, Hangzhou Laison Technology, will provide the funding.
Commenting on how Helcraw would recover its investment, Jere said:
<blockquote>
Modalities on how the money will be repaid are being looked at. We will be collecting our money over a period of five to 10 years (but those modalities) are still being fine-tuned.
</blockquote>
However, an informed source told the Independent that Helcraw would allegedly be charging a monthly levy of US$5,50.
The project also includes US$930 million for wastewater infrastructure rehabilitation, US$7.92 million for a plant and equipment by December next year, and US$1.8 million for operational vehicles.
Helcraw will also set up a US$20 million solar power plant to support the initiative.

Pindula News

A ZANU PF MP's company, Helcraw Electrical Projects, got a $138 million deal to upgrade Harare's water system. They plan to charge each household $5.50 every month for 5-10 years. Helcraw could make $93 million profit in 10 years. The project aims to increase water production in Harare to 520 million litres a day. The contract was given without a tender process. The city will also spend money on other upgrades. The company will be supported by a Chinese partner for funding. Residents may have to pay a levy of $5.50 monthly.

ZANU PF MP Awarded US$138m Harare Water Deal. Residents To Be Levied US$6 Monthly For 10 Years

Harare City Council officials reportedly met with the Ministry of Local Government and Public Works this week to express concerns over Helcraw Electrical Projects, a company linked to ZANU PF legislator Farai Jere, which was selected for a major water infrastructure contract.
The officials questioned Helcraw’s capacity, referencing its failed bid to supply water meters in a US$2 million tender in 2023.
According to an unnamed government official who spoke to <a href="https://www.theindependent.co.zw/local-news/article/200037064/harare-queries-water-plant-deal">The Independent</a>, Helcraw Electrical Projects was chosen to establish a new water treatment plant and supply water meters in partnership with Chinese firm Hangzhou Laison Technology. Said the official:
<blockquote>
A series of meetings have been held to discuss the agreement between the government and Helcraw Electrical Projects.
On January 12, city officials, including acting water director Richard Kunyadini attended a meeting at Makombe Building.
The meeting emphasised on the need to first conduct a due diligence on Helcraw Electrical Projects, focusing on whether they have capacity to fund the project.
It was centred on privatisation of water and sewer services and introducing Helcraw who had signed a Memorandum of Understanding as the chosen investor without having gone through any tender process.
The meeting focused on a number of issues that include whether Helcraw Electrical Projects had the financial and technical capacity to roll out the massive project.
Officials also questioned whether Helcraw Electrical Projects had presented the proof of funding to finance the project.
More importantly, the meeting questioned why a project of this scope could be awarded without first conducting due diligence on Helcraw Electrical Projects.
</blockquote>
Helcraw is expected to supply prepaid meters for 350,000 properties at a cost of US$96 million and replace a 100-kilometre pipe network valued at US$23 million.
When contacted for a comment by The Independent, Jere requested a meeting next week, stating he could not share such details over the phone.
Kunyadini, who also attended the meeting, referred The Independent’s questions to Mayor Jacob Mafume.
Mafume, who was in Russia at the time, said no one questioned the deal when it was signed last week. He was among the officials who attended the signing ceremony.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Harare City Council officials are worried about a deal with a company called Helcraw for a water project. The company failed in a previous bid. They are chosen to build a new water plant and supply meters. The officials want to check if the company has enough money and skills for the project. They also wonder why this company was chosen without a proper process. The company will supply meters for 350,000 properties and replace pipes. The legislator linked to the company did not comment on the issue.

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