The Reserve Bank of Zimbabwe (RBZ) has reportedly failed to pay part of its debt to Equatorial Guinea for its investment in a 40MW solar project in Bwoni Village in Seke District of Mashonaland, Zimbabwe – threatening one of the prime projects aimed at overcoming the country’s crippling energy situation.
The High Court in Harare has been told that the case arises from a case instituted by Old Mutual Life Assurance Company (Old Mutual), a creditor in Harava Solar Park, to save the power company after it failed to fulfil contractual obligations.
In January 2018 the Harava Solar Park was granted a Prescribed Asset Status and in February 2018 was also approved for National Project Status by the Ministry of Finance and Economic Development.
Equatorial Guinea’s Sovereign Wealth Fund secured Zimbabwe Investment and Development Agency approval in February 2022 to invest in Harava Solar Park and now, 14 months later, RBZ has failed to free up exchange control to release $15 million for repayment for its investment.
Old Mutual wants Harava placed under corporate rescue.
According to court papers, Old Mutual is a creditor and investor in Harava, having invested into it through a debt instrument the sum of $1 837 171.
The government of Equatorial Guinea, through its Sovereign Wealth Fund, expressed interest in investing in Harava in the sum of $15m by way of equity subscription.
''We are advised that Harava is now working on the disbursement of these funds through the Reserve Bank of Zimbabwe,'' said Old Mutual.
Old Mutual said it had been patient in this regard as it believed that the project could still be salvaged.
Harava is a fully licensed independent power producer, which is in the process of setting up a 20MW solar power plant project in Bwoni village.
The project is still under construction, with 6MW of panels already mounted on the ground, but not yet connected to the grid due to missing substation components.
To date, the project has acquired material and services to complete grid infrastructure, mounting structure, substation, transformers, cables, inverters, and solar PV panels but has a funding shortfall to complete the project and connect to the national grid.
To connect the 6MW of panels that are already mounted, the project will require additional funding of $3.4m.
