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Tuesday, June 18, 2024
HomeCourtsSupreme Court Reserves Judgement In ZPC Appeal Against Gwanda Solar Project Reinstatement

Supreme Court Reserves Judgement In ZPC Appeal Against Gwanda Solar Project Reinstatement

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The Zimbabwe Power Company’s (ZPC) bid to nullify a High Court ruling that reinstated controversial businessman Wicknell Chivayo’s troubled US$5.6 million Gwanda Solar Project is awaiting judgement from the Supreme Court.

Earlier this year, High Court judge Siyabona Musithu declared that ZPC had breached the contract when it canceled the 100MW agreement. Dissatisfied with the ruling, ZPC lodged an appeal with the Supreme Court, arguing that the lower court had erred in its decision.

However, Justice Anne-Mary Gowora, presiding over a three-member panel, announced that the judgement would be delivered at a later date, following submissions from both parties’ counsels.

Chivayo, acting through his company Intratrek Zimbabwe (Pvt) Ltd, had taken legal action against ZPC, seeking $25 million in damages for contract breach and repudiation. ZPC terminated the contract, claiming that Chivayo had failed to meet the specified conditions prior to the deal’s implementation.

Additionally, Chivayo was cleared of charges of fraud, money laundering, and violating exchange control regulations in court. Subsequently, he filed a lawsuit against the state-owned company, alleging that ZPC had violated the agreement. This legal action resulted in the High Court ruling, which reinstated the project.

The businessman also sued ZPC, asserting that the company had damaged his reputation by having him arrested for the aforementioned offenses. Musithu upheld Chivayo’s claim and ordered ZPC to pay costs on a higher scale.

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In his ruling, Musithu declared the procurement contract for the Engineering, Procurement, and Construction (EPC Contract) of the 100MW Gwanda Solar Project (ZPC 304/2015) between Chivayo and ZPC as valid and binding. The judge further granted an order for specific performance of the contract, given the contract’s validity.

Representing ZPC at the Supreme Court, attorney Daniel Tivadar argued that Chivayo and his company had failed to fulfill the requirements of the contract, countering the High Court’s ruling.

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