HARARE – Zimbabwe has awarded Matshela Koko, the controversial former CEO of South African power utility, Eskom, a contract to build a 100MW solar power plant in Gwanda, Matabeleland South.
In a notice dated July 17, 2019, published in local media, the Zimbabwe Energy Regulatory Authority (ZERA) said Koko, through his company Matshela Energy (Private) Limited, had been granted a licence to “construct, own, operate and maintain the 100 megawatt solar plant called Matshela Energy – Gwanda Timber Farm Solar Power Plant… for the purposes of generation and supply of electricity.”
Zimbabwe is experiencing severe power outages lasting up to 15 hours daily owing to depressed generation from hydro-powered Kariba Power Station and failing infrastructure at its other coal-powered power stations.
Matshela left Eskom in a cloud of controversy after he was linked to irregular coal-supply deals awarded to companies linked to the Gupta brothers, the Indian businessmen at the centre of an influence-peddling scandal.
Koko is currently the subject of a criminal investigation over his spell at Eskom, during which time he also allegedly promised a Swiss-based engineering giant R6,5 billion in future contracts if it subcontracted work on Kusile power station to Impulse International, a company partially owned by his stepdaughter, Koketso Choma.
The Zimbabwe Power Company (ZPC), a subsidiary of state power utility ZESA, awarded a US$172 million tender to Intratrek Zimbabwe, a company owned by businessman Wicknell Chivayo in 2015 but work is yet to begin.
The difference between Koko and Chivayo’s contracts is that the former Eskom boss will raise private funding for the power plant and retain ownership, while Chivayo is being paid to construct a power plant and hand it over to ZPC.