Chinese Government provides loan for Kunzvi Dam Project

The Kunzvi Dam Project involves the construction of a dam at confluence of the Nora and Nyagui rivers in Goromonzi District, the laying of a pipeline connecting the dam to the northern and eastern suburbs of Harare, and the construction of a water treatment plant. In November 2005, Zimbabwe’s Vice President Joice Mujuru and Water Resources and Infrastructure Development Minister Munacho Mutezo signed an agreement with China Jiangxi International Economic and Technical Cooperation Co., Ltd (CJIC). CJIC agreed in principal to build the Kunzvi Dam and provide irrigation equipment to boost food security in exchange for mineral concessions; however, the project did not move forward, leaving many urban areas without regular water supply. Then, in 2013, Kunzvi Water Development Corporation — a special purpose vehicle — was appointed to implement the project on a build, own, operate, and transfer (BOOT) basis. At that time, Vinci of France and Group Five of South Africa were announced as the major project contractors. However, after the project stalled again, the Government of Zimbabwe signed an RMB 3.962 billion ($680 million) commercial (EPC) contract with Power China International (中国电建国际公司) for Phase 1 of the Kunzwi Dam Project on July 28, 2016. Then, in November 2016, Sinohydro was appointed to implement the first phase of the project on a build, own, operate, and transfer (BOOT) basis. In a 2018 meeting in Beijing with President Mnangagwa, President Xi Jinping, pledged financial support for the Kunzvi Dam Project. During the same year, President Mnangagwa announced that he had secured funding for the project. A feasibility study was undertaken in 2019. The project was also allocated $259 million by Finance Minister Mthuli Ncube in the 2020 National Budget. However, in 2020, reports emerged that the Government of Zimbabwe had failed to pay both the loan management/commitment fees and Sinosure credit insurance premium needed to facilitate the implementation of the project. This outcome ‘greatly frustrated’ Sinosure. Then, in 2021, a new tendering process was initiated by the Government of Zimbabwe and China Nanchang Engineering (Pvt) Ltd was awarded a $109 million contract to build the dam on a build, operate and transfer (BOT) basis. In August 2021, China Daily — an English-language daily newspaper owned by the Central Propaganda Department of the Chinese Communist Party — reported that '[t]he dam is being built through a loan from China.' During the same month, Taurai Maurikira, the chief executive of the Zimbabwe National Water Authority, told a local newspaper (Sunday Mail) that following a recent site handover, China Nanchang Engineering (Pvt) Ltd had moved on site to start work on the water reservoir. An official project commencement ceremony took place in December 2021. The project was, at that time, expected to reach completion by January 2024. Two months later, in February 2022, Zimbabwe National Water Authority (Zinwa) and the Ministry of Local Government and Public Works were on the ground identifying families affected upstream by the project. Then, in March 2022, Mr Liangming Jin, executive chairman of China Nanchang Engineering (Pvt) Ltd, stated that additional equipment had arrived in Beira and was being dispatched to the Kunzvi dam project site. Heavy construction equipment, such as excavators, bulldozers, and tippers, had already arrived on site.

Additional details

1. This project is also known as the Kunzvi-Musami-Harare Water Project. The Chinese project title is 昆兹维大坝—哈拉雷供水项目 or 昆兹维大坝工程. 2. The face value of the loan is unknown. For the time being, AidData assumes that that the face value of the loan is equivalent to 85% ($92.65 million) of the total project cost ($109 million). This issue merits further investigation. 3. The identify of the Chinese lender is unknown. This issue warrants further investigation.

Number of official sources

4

Number of total sources

29