China Gezhouba Group Co (CGGC) funds US$351 million for water and wastewater projects in Zimbabwe (Linked to Project ID#87060, #87066)

On October 7, 2019, Harare City Council approved the signing of US$868 million deals for water and wastewater projects with four Chinese firms, with the Government reportedly going to assist the council in repaying the loans, while the former will cede land as collateral security. The four companies - China Gezhouba Group Co or CGGC, China Geo-Engineering Co (CGEC), Sino-Hydro, and China Machinery and Engineering Co or CMEC - will carry out the works through a loan facility guaranteed by the government of Zimbabwe. Under the deal, SinoHydro will fund and construct the Lyndhurst sewage treatment plant and expand the Crowborough sewage at a cost of US$237 million (see Project ID#87060). CGGC will fund water distribution network rehabilitation in 11 high-density suburbs for US$351 million. For US$280 million, CMEC will install pumps at Morton Jaffray and Warren Control, construct new water pumping mains to Alexandra Park reservoirs, Hatcliffe reservoirs, Highlands reservoirs New City, Southern Incorporated areas, and expansion of Adylinn pumping mains while CMEC will implement water and wastewater projects for the Harare Metropolitan Master Plan for Reliable Water Supply Services (see Project ID#87066). The fourth company, CGEC, which will soon sign an agreement with Harare, will upgrade and rehabilitate water distribution networks in the city for US$176.7 million.

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