HELCRAW Electrical Projects, the private firm awarded a government contract to execute a US$138 million water infrastructure project in Harare, is set to charge ratepayers US$5,50 every month for five to 10 years to recover its investment, the Zimbabwe Independent has uncovered.
According to the Harare Residents’ Trust, there about 350 000 houses in Harare, meaning the company will collect an estimated US$1,93 million per month, translating to around US$23,1 million per annum.
Over 10 years, Helcraw would have generated a revenue of around US$231 million, earning the company a profit of US$93 million.
When the deal was announced, details on the project’s value and timelines were not publicly disclosed.
As revealed by the Independent last year, Helcraw, chaired by Zanu PF legislator Farai Jere, was awarded the contract by the Ministry of Local Government and Public Works, allegedly without going to tender.
Documents seen by the Independent show Helcraw will mobilise US$138 157 700 as part of a broader US$1,54 billion initiative to revamp Harare’s water production, treatment and distribution system.
The project aims to increase daily water production to 520 million litres, requiring US$40,99 million.
Helcraw’s responsibilities include upgrading Darwendale pump station (US$200 000), installing dewatering pumps (US$45 000) and fitting raw water flow meters (US$75 000).
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Completion is scheduled for December 2025.
The documents reveal that the government will be responsible for “clearance of chemical debt and stocking chemicals enough for two months” to support generation of 450 million litres daily from Morton Jaffray and Prince Edward water treatment plants at a cost of about US$7,9 million.
This, as the documents show, will result in “increased production”.
Similarly, authorities are also considering the “rehabilitation of sludge disposal irrigation system at Morton Jaffray pumping plant (three sets), transformer and switchgear” at a cost of US$8 million through a public-private partnership (PPP).
A proposed financing model also budgets US$542,88 million for rehabilitating Harare’s distribution network, with Helcraw tasked with key upgrades, including US$1,75 million for Alex pump station rehabilitation, US$23 million for replacing 100km of piping, and US$96 million for supplying prepaid meters to 350 000 properties.
The city will finance the replacement of 20km of piping at US$15 million, while a PPP will mobilise US$154 million for a 2 580km pipeline overhaul and carry out new reticulation work for the new city at a cost of US$80 million.
Jere dismissed allegations of favouritism, stating the contract resulted from his company’s proposals and track record, not his political position.
He said: “It has nothing to do with my role as a legislator. It was a matter of me proposing and being able to proffer solutions. We have notable achievements. We have provided electricity meters. We have done water meters in Karoi. We are the ones who proposed this to Zinwa.”
Jere further stated that the cost of the project was still under discussion by parties to the deal.
“The cost of the project is still not clear as there are meetings held daily to adjust. All we did was to propose. We are yet to get the actual figure. As per our contract, the project is a 24-month project,” he said.
Jere said Helcraw’s Chinese partner provided the proof of funding.
He added: “It is a private-public partnership. We made the proposal to offer solutions and brought a partner (Hangzhou Laison Technology) with funding.”
Commenting on how Helcraw would recover its investment capital, he said: “Modalities on how the money will be repaid are being looked at. We will be collecting our money over a period of five to 10 years (but those modalities) are still being fine-tuned.”
But an informed source told the Independent that Helcraw would allegedly be charging a monthly levy of US$5,50.
“They will be charging US$5,50 per ratepayer per month until they achieve their return on investment. It is not known how they arrived at that figure,” the source said.
The broader project also includes US$930 million for wastewater infrastructure rehabilitation, US$7,92 million for setting up a plant and equipment by December next year, and US$1,8 million for operational vehicles.
Additionally, Helcraw will establish a US$20 million solar power plant to support the initiative.
Questions sent to Harare mayor Jacob Mafume were not addressed at the time of going to print.
Ministry of Local Government spokesperson, Wisdom Mdzungairi defended Helcraw’s selection, citing its track record with Zinwa.
“Helcraw has supplied water meters in partnership with Zinwa before to local authorities. So, they do not need to submit proof of funding,” he said.
“Government did not hand-pick Helcraw, as Helcraw is in business. So, what happens when you are in business is that you come with your partner and make a proposal and that is what Helcraw did.”
