Controversial businessman Dilesh Nguwaya who is at the centre of the disputed Pomona waste to energy joint venture deal with City of Harare has threatened to terminate the agreement following the local authority’s failure to pay May service fees.
In a notice of default letter to City of Harare, Nguwaya who is the Country Director for Netherlands based GeoGenix B.V said the Concession Agreement accords him powers to take remedial action in case of the municipality failing to respect its contractual obligations.
“In accordance with article 30.1 of the Joint Venture Concession Agreement to Design, Build, Operate and Transfer of Harare Pomona Waste Management Facility and Waste to Energy Plant, entered into between the City of Harare and GeoGenix B.V on 9 March 2022 (the Concession Agreement), we hereby invoke our right to notify you that as of 1 July 2022, the City of Harare is in default of its obligation to pay the fees to Geo Pomona Waste Management (PVT) Limited (the company”) within the prescribed term,” said Nguwaya.
He further accused City of Harare of intentionally refusing to meet its obligation to the project which he said is forcing Geo Pomona to charge 12 percent interest on outstanding May service fee.
Nguwaya added that the concession agreements empowers him to take remedial action should City of Harare fail to take action within 90 days of default notice.
“We remind you that when the contracting Authority Event of Default is in effect, the Concession Agreement accords us the following remedial rights to be taken within 90 days of this notice;
“Extend the construction period and thus delay the project handover delivery date
“Cease all services to the City of Harare and/or
“Terminate the Concession Agreement resulting in Early Termination Compensation Amounts immediately due and payable by the City of Harare,” added Nguwaya.
Reached for a comment, City of Harare Mayor Councilor Jacob Mafume said they stand guided by a council resolution that suspended the Agreement pending investigations into the deal.
“We have a standing council resolution to suspend the project and as far as we are concerned that resolution is still in effect. Only a council resolution can suspend another resolution,” said Mafume.