Helcraw Electrical Projects, a private company, has been awarded a contract to undertake a $138 million water infrastructure development project in Harare.
As part of the arrangement, residents will reportedly pay $5.50 per month for five to ten years to allow the company to recover its investment, sources have revealed.
According to the Harare Residents’ Trust, the city has approximately 350,000 households, meaning Helcraw could potentially collect $1.93 million monthly, amounting to $23.1 million annually. Over a decade, this would result in revenues of approximately $231 million, giving the company an estimated profit of $93 million.
When the contract was initially announced, details regarding its value and duration were not disclosed. However, documents seen by the Zimbabwe Independent indicate that Helcraw was tasked with mobilizing $138.16 million as part of a larger $1.54 billion initiative aimed at upgrading Harare’s water production, treatment, and distribution systems.
The project’s primary goal is to boost daily water production to 520 million liters, with $40.99 million allocated toward this target. Helcraw’s specific tasks include upgrading the Darwendale pump station for $200,000, installing dewatering pumps for $45,000, and fitting raw water flow meters for $75,000.
Additionally, the government has committed to clearing debts for chemicals and providing enough stock for two months, costing an estimated $7.9 million. This support will ensure the production of 450 million liters of water daily from the Morton Jaffray and Prince Edward treatment plants. Other upgrades, such as rehabilitating the sludge disposal irrigation system and transformer equipment at Morton Jaffray, are expected to cost $8 million under a public-private partnership (PPP).
A proposed financial model allocates $542.88 million for rehabilitating Harare’s distribution network. Helcraw’s scope includes:
- $1.75 million to upgrade the Alex pump station.
- $23 million to replace 100 kilometers of piping.
- $96 million for supplying prepaid water meters to 350,000 properties.
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The city council will also contribute, replacing 20 kilometers of piping at a cost of $15 million. Additionally, a PPP will mobilize $154 million for a 2,580-kilometer pipeline overhaul and invest $80 million in reticulation for Harare’s expansion.
Farai Jere, Helcraw’s chairperson and a Zanu PF legislator, dismissed claims of favoritism, stating that the contract was awarded based on his company’s proposals and experience, not his political affiliations.
“This has nothing to do with my role as a legislator. It’s about proposing solutions and delivering results. We’ve previously worked on electricity meters and water meters in Karoi and made similar proposals to Zinwa,” Jere explained.
Jere also clarified that the total cost of the project is still under review as discussions are ongoing. “The project is set to be completed in 24 months, and our Chinese partner, Hangzhou Laison Technology, has provided proof of funding,” he added.
When asked about how Helcraw plans to recover its investment, Jere stated: “We are still finalizing the modalities, but it will involve collecting repayments over five to ten years.”
An insider revealed that residents are expected to pay a monthly fee of $5.50, though it remains unclear how this figure was calculated.
The broader initiative also includes $930 million for wastewater infrastructure upgrades, $7.92 million for setting up plant and equipment by the end of next year, and $1.8 million for operational vehicles. Helcraw also plans to develop a $20 million solar power plant to support the project.
Wisdom Mdzungairi, a spokesperson for the Ministry of Local Government, defended the awarding of the contract, highlighting Helcraw’s experience in previous projects with Zinwa.
“Helcraw has a proven track record of working with Zinwa and local authorities. They didn’t need to provide proof of funding because they came with a partner and made a proposal. This is standard practice in business,” Mdzungairi explained.
Efforts to reach Harare Mayor Jacob Mafume for comment were unsuccessful at the time of publication.
